In a significant shift for the global banking landscape, SWIFT has announced that it will discontinue support for the legacy MT message format on November 22, 2025. This transition to the ISO 20022 standard is set to revolutionize cross-border payments, enhancing data quality and operational efficiency. The source reports that this change will require financial institutions to adapt their systems to meet the new standards.
Introduction to ISO 20022
The move to ISO 20022 aims to provide clearer transaction information, which will help reduce delays often caused by incomplete data. While individual bank customers may not immediately feel the effects of this change, the implications for the banking system are profound, particularly in terms of improving fraud detection and compliance measures.
Challenges for Unprepared Banks
However, the transition poses challenges for banks that are unprepared. Institutions that fail to adapt to the new standard may experience:
- payment delays
- higher operational costs
Impact on Competitiveness
These issues could potentially affect their competitiveness in the global market. As the deadline approaches, banks will need to prioritize their readiness to ensure a smooth transition to the new messaging format.
Earlier today, BlackRock announced the launch of the BSTBL fund to comply with the GENIUS Act, marking a significant development in the cryptocurrency market. This initiative contrasts with the recent changes in the banking sector as SWIFT transitions to the ISO 20022 standard. For more details, see read more.
