Swift delays ISO 20022 cross-border payments migration

Swift is to delay the original ISO 20022 migration date for cross border payments by 12 months, from November 2021 to the end of 2022, as banks struggle with decommissioning and preparing existing infrastructure for the transition, according to finextra.com.

The data-rich language and payments structure is expected to see widespread adoption, with ISO 20022 anticipated to revolutionise not only cross-border payments, but the entire payments landscape.

The decision to delay was made following feedback from the Swift community about the impending deadline. While institutions have an extra year of system co-existence initially, the ultimate deadline for decommissiong the legacy Swift MT standard remains in place as 2025.

Although Swift’s statement does not explicitly state whether auxilliary initiatives will also be delayed, the firm says it will „deliver on its on-going commitments to community and regulatory initiatives including SWIFT gpi, market infrastructure projects such as the Eurosystem Single Market Infrastructure Gateway (ESMIG) and Shareholders Rights Directive (SRD II).”

Commenting to Finextra, Swift says the decision to delay was made so that „financial institutions can maintain existing standards or migrate, and plan change at their own pace in line with their own innovation priorities.”