Last updated: 4 July 2023
As a reminder of what we communicated in March 2023, payment market infrastructures across the world have started aligning to the global ISO 20022 standards. The Swift network used by banks globally began adoption of ISO standards on 20 March 2023. In addition to Swift, a few market infrastructures like TARGET2 and Eurosystem Market Infrastructure Gateway (ESMIG) for EUR also adopted the ISO standards in March 2023.
Following these changes, the UK RTGS system (CHAPS) adopted the ISO standards on 19 June 2023.
What’s changed?
ISO 20022 enables richer and more detailed data to be included in payment messages, along with a host of other benefits, aiming to provide a better experience for you, as an HSBCnet user.
Since March 2023, you may have started to see a ‘+’ in the statement narrative for some incoming transactions, indicating that payment details have been truncated in the statement due to space constraints. As market practices evolve, you may also start seeing new code words within transaction narratives that HSBC receives from other banks. If you need access to additional payment information (as per ISO 20022 standard), please contact your HSBC representative.
You will not have seen any changes to HSBCnet payment screens. If you use HSBC Connect, you can continue to send instructions to HSBC as you do today. We plan to introduce changes over time and will notify you ahead of any payment updates that will allow you to leverage the benefits that ISO standards offer.
What is ISO 20022?
ISO 20022 is a global, flexible standard that creates a common language for payments worldwide. All banks must be ready to support the new language/standard to continue processing payments and customers should also prepare for changes.
The IS0 20022 standard supports the inclusion of richer, better structured transaction data in payments messages, enabling less manual intervention, more accurate compliance processes, higher resilience and improved fraud prevention measures.
What this means for you
Already the common language of choice for real time and low value / domestic schemes, ISO 20022 will become the de-facto standard for high value and priority payments in the domestic and international space. The migration will provide a new model for the global exchange of payment data, with richer and higher quality information than the existing standards. This will also be an enabler for future development and innovation in the payments ecosystem.
ISO 20022 is being adopted by Swift in their latest move to ensure optimal cross-border payment communication. The Swift ISO adoption programme began in March 2023 and will continue through to November 2025; all major global payment infrastructures plan to adopt the standard. Swift plans to migrate all customer and inter-bank payments, as well as related advice and statement messages from the MT1xx, MT2xx and MT9xx series of messages to, the new XML based pacs (payments clearing and settlement) messages and camt (cash management) statements and advices.
Our Readiness Handbook guides are available to support you through the transition to ISO 20022, and the significant changes this will bring across the payments industry, how and why these changes will happen, and the benefits they can bring.
Readiness Handbook: Corporate Customers ❯
Readiness Handbook: Financial Institution (FI) Customers ❯
Find out more
To learn about how HSBC is adopting the new language of payments and for other resources, please visit our ISO 20022 website.
If you have further questions, please contact your local HSBCnet Support Centre or HSBC representative.