ISO 20022 – The messaging of the Finternet ?

April 16, 2024

A paper released today by the Bank for International Settlements – BIS describes the “financial system for the future,” called the Finternet, that would use unified ledgers as a vehicle.

“This paper lays out a vision for the Finternet: multiple financial ecosystems interconnected with each other, much like the internet, designed to empower individuals and businesses by placing them at the centre of their financial lives.”

“Antiquated clearing, messaging and settlement systems are a significant source of delays. Even when individuals use sophisticated front-end interfaces to make supposedly “digital” transactions, behind the scenes, movements of money and other financial assets often rely on the owners of siloed proprietary databases to initiate and process transfers.”

“These databases often operate with different technical standards and governance arrangements, connected through third-party messaging systems that may not interact smoothly with each other.”

“Some efforts to harmonise messaging standards are currently under way, with the G20 cross-border payments programme initiative to promote the global adoption of the ISO 20022 message standard being a leading example..”

To the full report here..

https://www.bis.org/publ/work1178.pdf