Reasons for the new standard
Cross-border trade and cash flow, as well as the associated processes and an increasing level of automation, require standardized payment transactions. By creating a new standard and a uniform format for the exchange of information, we can eliminate potential sources of error. Time- and cost-intensive reformatting will be done away with and searches will be significantly simplified.
ISO 20022 (International Organization for Standardization) lays the foundations for simpler, more cost-effective payment transaction processes.
The changes to payment transactions concern all market participants and predominantly the following business processes:
- Accounts receivable processes for invoicing (including direct debit schemes)
- Accounts payable processes for invoice payments
- HR processes for salary and pension payments
- Account balancing, account statements, liquidity and cash management