ISO 20022: our latest update

Last updated: 10 October 2023

As a reminder, over the next few years, payment market infrastructures (PMI) across the world will align to the global ISO 20022 standards.

HSBC has successfully enabled its global network to send and receive ISO 20022 cross-border payments and reporting (CBPR+) messages on the Swift network. We’re also able to exchange ISO messages in the newly migrated domestic markets in Europe (Target2), Australia, New Zealand, Canada, and the most recent adoption by UK (CHAPS) in June.

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 ISO 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

HSBC has embarked on a multi-year transformation program that will see changes across our channels and is well placed to extend the benefits that the ISO standard will offer. This means that our customers will have the ability to provide richer data and receive newer versions of reporting statements and advices.

With the adoption of this standard, the industry is also looking at streamlining certain information that will help reduce friction in the end-to-end payment journey. As a result, Swift and various clearing schemes have introduced new data requirements for payments. These include fields like creditor, ultimate debtor, initiating party, and ultimate creditor that will require you to provide information in either a structured or hybrid manner. Town Name and Country code in structured format must be provided at a minimum.

We will soon be providing communications on the changes to file formats and HSBCnet payment screens. We strongly recommend that you start looking at the data that you provide to us and, if applicable, work closely with your Enterprise Resource Planning (ERP) and/or Treasury Management System (TMS) providers to start making updates from 2024 to comply with this mandatory industry requirement.

Example of a ‘structured’ address in ISO	Example of a ‘hybrid’ address in ISO
Name JOHN SMITH Postal Address Street Name HOOGSTRAAT Building Number 6 Floor 18 Postal Code 1000 Town Name BRUSSELS (required) Country BELGIUM (required) or in ISO technical terms: <Nm>JOHN SMITH</Nm> <PstlAdr> <StrtNm>HOOGSTRAAT</StrtNm> <BldgNb>6</BldgNb> <Flr>18</Flr> <PstlCd>1000</PstlCd> <TwnNm>BRUSSELS</TwnNm> <Ctry>BE</Ctry> </PstlAdr>	Name JOHN SMITH Postal Address Postal Code 1000 Town Name BRUSSELS (required) Country BELGIUM (required) Address Line 1 HOOGSTRAAT 6, 18th floor or in ISO technical terms: <Nm>JOHN SMITH</Nm> <PstlAdr> <PstlCd>1000</PstlCd> <TwnNm>BRUSSELS</TwnNm> <Ctry>BE</Ctry> <AdrLine>HOOGSTRAAT 6, 18th floor</AdrLine> </PstlAdr>

Example of a ‘structured’ address in ISO

Example of a ‘hybrid’ address in ISO

Name JOHN SMITH
Postal Address
            Street Name HOOGSTRAAT
            Building Number 6
            Floor 18
            Postal Code 1000
            Town Name BRUSSELS (required)
            Country BELGIUM (required)

or in ISO technical terms:

<Nm>JOHN SMITH</Nm>
<PstlAdr>
            <StrtNm>HOOGSTRAAT</StrtNm>
            <BldgNb>6</BldgNb>
            <Flr>18</Flr>
            <PstlCd>1000</PstlCd>
            <TwnNm>BRUSSELS</TwnNm>
            <Ctry>BE</Ctry>
</PstlAdr>

Name JOHN SMITH
Postal Address
            Postal Code 1000
            Town Name BRUSSELS (required)
            Country BELGIUM (required)
            Address Line 1 HOOGSTRAAT 6, 18th floor

or in ISO technical terms:

<Nm>JOHN SMITH</Nm>
<PstlAdr>
            <PstlCd>1000</PstlCd>
            <TwnNm>BRUSSELS</TwnNm>
            <Ctry>BE</Ctry>
            <AdrLine>HOOGSTRAAT 6, 18th floor</AdrLine>
</PstlAdr>

Find out more

For additional resources and to learn about how HSBC is adopting the new language of payments, please visit our ISO 20022 website.

If you have further questions, please contact your local HSBCnet Support Centre or HSBC representative.