Broadridge launches solution to save banks time and money in meeting ISO 20022 payments standard
Broadridge Financial Solutions,a global Fintech leader, has launched its market-ready Financial Messaging and Connectivity solution for firms migrating to the new ISO 20022 standard for payments between financial institutions.
Broadridge’s mutualised service model provides solutions on a shared cost basis at a time when many banks, market infrastructures and other financial institutions are planning substantial change projects to meet SWIFT’s start date for adopting the new ISO standard for cross-border payments, which commences at the end of 2022.
ISO 20022 messages enable financial firms to communicate more data-rich, detailed and meaningful information in an improved format. By adopting it as a common language, the payments industry will benefit from increased accuracy and efficiency, reduced operational risk exposure and the ability to drive increased levels of client service.
“Banks are driving for ISO 20022 payments market-readiness in time for SWIFT’s start date, and it’s important that they are well-prepared for a timely and well-controlled migration in order to realise the benefits, both for themselves and their clients,” says Andreas Gunther, Broadridge’s executive responsible for financial messaging. “Our solutions are available now and, because it is part of our mutualised service model, it will reduce or eliminate the need for clients to carry out expensive and complex in-house development and upgrades.”
The migration to ISO 20022 payment message formats will involve significant work for the payments industry. In addition to upgrading their messaging workflows and communications, many firms will need to apply changes to back-office systems; treasury and cash management processes; fraud and compliance systems; and downstream client systems. Changes to business processes and client services will also need to be considered, and there will be a widespread requirement for message conversion.
Broadridge’s Financial Messaging and Connectivity solution, FinMApp, is available as a managed service supporting the full library of payments messages and cash reporting in the new ISO 20022 standard, as well as for the legacy standards currently in use. Its coverage applies to both SWIFT messages and other protocols, such as the emerging EBICS protocol used in a growing number of European markets.