ISO 20022 is more than a compliance requirement—it’s a transformational shift in how payments are processed, providing richer, more structured data that enhances automation, reconciliation, and compliance. At Scotiabank, we’re embedding these standards into our systems to deliver tangible benefits to corporate treasurers.
Rachelle Hildyard, Vice President, Global FIG & Correspondent Banking, shares her insights in an interview with Swift, discussing how ISO 20022 is shaping the future of payments and what treasurers need to know to stay ahead.
Key Takeaways for Treasurers
- Simplified Reconciliation – Eliminate Payment Data Ambiguities
ISO 20022 provides structured, standardized data, reducing errors and manual interventions in reconciliation. With clearer remittance details, treasurers can match payments to invoices faster, improving straight-through processing rates.
Why it matters: 72% of treasurers cite reconciliation delays as a top inefficiency. ISO 20022 provides the structured data needed to automate and accelerate cash application.1
- Reduced False Positives – Accelerate Compliance Processes
Better data means fewer blocked transactions due to compliance screening errors. ISO 20022’s structured information reduces false positives, cutting down on unnecessary manual reviews and ensuring payments clear faster.
Why it matters: Treasurers spend up to 25% of their time dealing with payment delays due to compliance holds—this solution minimizes that friction.2
- Enhanced Cash Flow Forecasting – Achieve Real-Time Financial Visibility
With ISO 20022, treasurers can access more detailed transaction data, improving real-time cash flow forecasting and liquidity management.
Why it matters: Cash flow accuracy can improve by up to 30% when rich payment data is fully leveraged, helping treasurers make better liquidity decisions. 3
- Global Interoperability – Harmonize Payments Across Borders
ISO 20022 isn’t just a new format—it’s a global standard that streamlines payment processing across different banking systems, reducing format conversions and inefficiencies.
Why it matters: Treasurers managing multi-bank relationships will benefit from smoother, more efficient payment processes with fewer manual interventions.4
- Future-Proofing Treasury Operations – Stay Ahead in Digital Payments
Embracing ISO 20022 isn’t just about compliance—it’s a strategic move to future-proof payment systems, enabling faster processing, reduced errors, and more efficient operations.
Why it matters: Implementing ISO 20022 allows treasurers to leverage richer data standards and interoperability, positioning their operations to adapt seamlessly to the evolving digital payments landscape.5
Connect with us to discover how leveraging data-rich insights through Scotiabank's Structured Remittance Advice and Receivables Reporting can streamline your operations, enhance reconciliation processes, and improve cash flow management. Speak with a Treasury Management Officer today.
Footnotes:
1 https://www.swift.com/corporates/iso-20022-corporates
2 https://www.swift.com/news-events/news/5-reasons-why-you-should-adopt-iso-20022-now
3 https://www.swift.com/standards/iso-20022/supercharge-your-payments-business/chapter-10
5 https://www.swift.com/news-events/news/10-takeaways-swift-sibos-2024
