In business, clarity often accelerates action and progress, which is more precious than simply evolving quickly.
For a large part of the history of world trade, the speed of clarity is more like a fragmented ramp.
What was missing is a common language.
Different compensation systems, inherited corresponding banking channels and a patchwork of regulatory plans have meant that A seemingly simple transfer, whether at retail or in large (B2B), could take days to settle. The costs were opaque, the follow -up was heavy and the data attached to the payments was often truncated or lost.
However, financial messaging network FastTHE centenary Horodrotine of world payments, announced on Monday, September 29, that it was driving a new network based on blockchain for cross -border payments With 30 banks. The announcement underlines that an increasing accent on the richness and intelligibility of data on the market is starting to modify the economy and the efficiency of cross -border payments.
The big shared book based on Swift blockchain focuses on the rationalization of real time, 24/7 cross -border payments. Many, if not all, financial partner financial institutions are also concentrated by accelerating the transition to ISO 20022 Standards. The purpose of ISO 20022 is develop The quality and exhaustiveness of the data transported in payment messages And make sure that The data can be interpreted in a coherent manner In Each jurisdiction.
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For business leaders, the rise of rich and intelligible payment data is not simply an operational question. This can affect decisions on the centralization of the treasury, the integration of suppliers and platform partnerships.
Overall, the market during the market can announce not only faster cross -border compensation, but also detection of fraud in real time, smoother sanctions and automated regulatory reports.
Read also: How the consumption of X-Border payments reshapes the corporate treasure
The rise in data richness as a competitive differentializer
In The last decade, the world payroll ecosystem has been reshaped by A Convergence of technology, regulations and the increase in customer expectations. Is the most consecutive and least glamorous change in the way payment data is structured, transmitted and interpreted beyond borders.
A central culprit of cross -border friction in payments was the limited capacity of messages of messages that were designed decades ago,, at a time of communication based on Texex and only carried the minimum data necessary to instruct a transfer, as sender, receiver, amount and a few fields of free form. In the current world of the projection of compliance in real time, Anti-Arone whitening (AML) Automated obligations and reconciliation, these data constraints create bottlenecks.
The accelerated adoption of the ISO 20022 global messaging standard was a moment of the watershed. Its XML diagrams allow More freezing data at travel with Each payment, by replacing the free text fields with structured elements and readable to the machine. For companies, that means that invoices can be matching Automatically with incoming payments. For banks and regulators, this means that real -time screening and surveillance are more reliable.
The history of cross -border payments during the next decade can be as a lot on data like about money. By incorporating wealth and intelligibility into the very fabric of payment messaging, the industry attacks the deep causes of costs and delays that have long tormented international trade.
“We are going to a new environment where settlement will be instantaneous, ” Sébastian SintesDirector of the Transactional FX at America Banktold Pymnts on September 8 of the transition to ISO 20022. “The quality of information will become even more important because it will be more difficult to make adjustments. We expect to see an increase in the speed and volume of the payment activity, while seeing a reduction in errors and risks … It was a compromise before. Now we are in an environment where that, hopefully, will not be (therefore). »»
The question will be more around How the treasurers capture, store and manage the data throughout its life cycle, he added, noting that structured data is fundamental to effective integration of tools and innovation of artificial intelligence.
See also: Why cash time is a new reference for B2B cross -border growth
The effects of undulation on the economy of payments
The richness of the data refers to the extent, the depth and the quality of the information accompanying each payment instruction. This Includes structured fields for ultimate initiators and beneficiaries, detailed data on funding, objective codes and standardized identifiers as Identifiers of legal entities (Leis).
However, rich data is only as useful Like the weakest link in the chain. If the system of a supplier truncates information on funding, The advantages of downstream automation can be lost.
The data rich in themselves do not guarantee better results. To make it useful, all participants, including banks, companiesPayment service providers and regulators must interpret it in the same way.
When richer data arrive in a coherent format, intermediaries can process it with fewer manual interventions. That can activate Things like a faster funding credits and more predictable delivery windows. Some corridors that have taken once two to three days are now approaching the day’s paymentwhile Transparency has Improved tooas the monitoring tools modeled on package transfer interfaces can give Treasurers visibility in real time on the state of payment.
In addition, financial institutions have traditionally spent massively on manual checks and sanitation of incomplete or ambiguous data. Automation of these processes with rich and structured information can help reduce operational risks and general compliance costs, an advantage that Can be particularly valued In high -risk corridors.
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