European banks have not had an easy time of late. With PSD2 and GDPR coming onto the scene, SCT Inst taking off, new and more palpable fraud threats emerging, and new geopolitical sanctions being implemented, the length of the compliance, payments, and product managers’ to-do lists has been growing faster than they can check things off.
SO 20022 and Target2 Migration
While the transition to ISO 20022 was pushed back, giving banks some much-needed breathing room, the entire European payments infrastructure will soon migrate to this message standard commencing November 2022. Most high-value payments are likely to be processed using ISO 20022 by 2025, which is looming on the horizon, so ignoring these developments would cause considerable risk for banks. While banks can opt for a complete migration of their back-office systems or even rely on conversion solutions, these too come with the risk that information is lost, mistranslated, or truncated due to old message formats. Migrating an entire back-office can be costly and complex, which potentially makes outsourcing a more cost-effective, faster, and more sustainable proposition. Banks need to evaluate where they can add value to their customers and the degree to which investing in back-office modernisation fits into that goal.
Read the full post here, written by Broadridge and Lipis Advisors.
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