Revenue Opportunities for Financial Institutions Enabled by ISO 20022 / Open Banking

Significant changes are underway in the payments industry due to technology advancements, customer demand and business initiatives such as open banking and ISO 20022. These developments provide financial institutions with revenue opportunities by enabling better-quality data and improved customer experiences. The international standard for financial communications and data exchanges, ISO 20022, offers benefits like faster, more reliable, secure payments at a lower cost due to enhanced interoperability and elimination of different standards from various countries and financial institutions. Open banking, also known as PSD2 Second Payment Services Directive, requires the United Kingdom's largest banks to release their data in a standardized format, allowing for improved customer experiences through account aggregation services like Intuit's Mint. Financial institutions can leverage these changes by implementing strategic infrastructure and application systems that support ISO 20022 capabilities, offering global payment solutions, and improving clearing/settlement of securities processes. To capitalize on these opportunities, financial institutions must have a real-time data platform and ensure compliance with local data regulations.