A new paper from Accenture lays out the biggest hurdles banks must clear on the journey to ISO 20022—and four key elements for planning your migration.
1. Conduct business-driven gap analysis
The migration is a journey into the unknown for the entire industry. Banks will need to budget accordingly and avoid misalignment of workstreams. Streamline processes and value chains with a center of knowledge. Conduct a thorough impact assessment. Reach out to clients and consider their migrations too.
2. Find a rational balance in implementing multiple critical projects
The complexity and expense of migration are both daunting, but minimal compliance will likely mean missed opportunities. It is critical that banks focus on future-proof strategies rather than the immediate business case. Elaborate the best migration approach for parallel programs, and consider the potential synergy of aligning several migration programs (e.g. SWIFT and T2) where applicable.
3. Upgrade aging legacy systems
Many legacy systems can neither support nor leverage the new standard. Assess infrastructure to determine which systems need to be decommissioned and which should be shielded with accelerators and other tools. Review systems for their ability to process larger data volumes, intraday liquidity management, compliance checks, and fraud prevention and detection. ISO 20022 should be a driver for replacing and dismantling outdated systems.
4. Apply strategic guidelines for planning
ISO 20022 is a generational challenge in project management, but many banks still have no clear roadmap for its implementation. Manage the risk with master project planning, an emphasis on testing and quality assurance, and the involvement of key stakeholders, including clients and external partners.
We’d love to answer any questions you have about ISO 20022 migration or hear feedback on our report, “Europe’s Journey to ISO 20022.” If you’d like to talk about your migration plan, please get in touch.