Zanders joins the ISO 20022 Payments SEG
Zanders has decided to participate in the ISO 20022 Payments Standards Evaluation Group (SEG). This is a milestone event as Zanders continues on its growth strategy to help corporates become better, smarter and more efficient in the way they work. To help explain the significance of this decision, we need to consider Zanders’ broader engagement in the global financial standards domain.
Zanders was an early participant of the Common Global Implementation – Market Practice (CGI-MP) Group, which was formed back in October 2009 following the publication of the April 2009 ISO standards maintenance release. This industry collaboration now has over 160 member organizations, with a primary focus on delivering message implementation guidelines that help all stakeholders achieve a more harmonized implementation. The original aim was to remove the pain from implementing the ISO 20022 XML messages through a more common interpretation of field usage and codes.
Zanders is still continuing its proactive support of this industry group through its leadership work around the Appendix B local rules document which will apply to the pain.001.001.09 customer credit transfer initiation message – or version 9 for short. This is the message that will be aligned to the forthcoming SWIFT MT to MX migration – but we will talk more about the version 9 message in a future article as this is also an important topic in which Zanders can provide guidance. Importantly, the CGI-MP is an integral part of the overall ISO 20022 structure within the financial domain.
ISO/Technical Committee 68 (TC68) Financial services: Governance Structure
TC681 has responsibility for standardization in the field of banking, securities and other financial services. The diagram below provides an overview of the overall finance domain structure.
While payments initiatives are leading the way in terms of ISO 20022 adoption, the current message catalogue now contains over 700 messages across the five financial service domains: payments, securities, trade services, cards and foreign exchange (FX).
The Registration Management Group (RMG) is responsible for the overall management of the standard and the registration process and reports to ISO TC68. The role of the RMG is to promote and support the involvement of financial service actors to facilitate the registration and maintenance of high quality globally relevant ISO 20022 compliant business models for exchange of information for financial services.
SWIFT plays two key roles within ISO 20022. First, SWIFT is the Registration Authority (RA) responsible for maintaining and publishing the central repository of ISO 20022 content and ensuring its integrity. Second, SWIFT is a facilitator of the Common Global Initiative-Market Practice Group.
The Importance of the Standards Evaluation Group
The SEG performs three core functions within ISO 20022:
- Ensure that the right industry groups are informed of proposed developments so that all business requirements will be addressed.
- Validate the newly developed message definitions from a business perspective as representative of future users. This is to ensure that what will be posted in the ISO 20022 repository by the RA really addresses the needs of future communities of users as described in the business justification accepted by the RMG in the first place.
- Approve changes to existing message definitions.
Focusing on the Payments SEG, the role includes the messages supporting transactions and business processes related to the following non-exhaustive list of financial instruments:
- Credit transfers
- Direct debits
So going back to the opening question around the significance of this decision, Zanders is now moving beyond the initial industry collaboration around the implementation of ISO 20022 financial messaging. Our participation in this ‘Expert’ group provides the opportunity to play a proactive role in the ongoing evolution and adoption of this global financial messaging standard. The acceptance of Zanders into this group highlights the significant experience within the payments and financial standards domain. This decision to participate in the Payment SEG will provide the opportunity to help our clients both understand the changing landscape and make informed decisions on the optimum way forward.
1) For more information on ISO, visit the website at https://www.iso.org