FDIC logo

FDIC-Insured - Backed by the full faith and credit of the U.S. Government

FDIC logo

FDIC-Insured - Backed by the full faith and credit of the U.S. Government

UMB Logo

ISO 20022: The new global standard for payments messaging

ISO 20022 is a new global messaging standard for the electronic exchange of data covering payment, securities, and foreign exchange, among others. ISO 20022 creates a consistent financial messaging framework designed to create richer and more structured payment data—a significant advancement for the industry. 

What is changing?

All wire transfer networks, including Fedwire and SWIFT—the two networks which UMB uses—are converting to the ISO 20022 standard in 2025. Existing SWIFT MT messages related to payments will be replaced with ISO 20022 MX messages. 

ISO 20022 is already the industry’s preferred message type for real-time payments networks, both domestic and global. This conversion will make ISO 20022 the preferred message type for high-value payments both domestically and internationally, setting a new global standard for the exchange of payment data.

What are the benefits ISO 20022?

Due to the disparate messaging standards that exist today, the broad payments ecosystem will likely benefit from the adoption of ISO 20022.

Issues with current payment message standards:

  • Multiple standards in use for international payments
  • Limited data fields
  • Inefficient processing of payments and data
  • Little opportunity for automation
  • Lack of transparency
  • Free format fields prevent effective sanctions screening

Benefits of ISO 20022 adoption:

  • Unified global standard for messaging
  • Structured data fields
  • More remittance information
  • Faster payment and exception processing
  • Easier reconciliation
  • Opportunity for future innovations and automation
  • Improved sanctions screening

When does ISO 20022 come into effect?

Both SWIFT and Fedwire networks will transition to the ISO 20022 standard in 2025. For SWIFT there is also a period of overlap where both message types are accepted. 

  • March 2023 – Coexistence Period Begins for SWIFT
    SWIFT supports both MT and ISO 20022 MX messages.
  • July 2025 – Fedwire Migration
    All Fedwire financial institutions must begin using ISO 20022 messages for all incoming and outgoing wires.
  • November 2025 – SWIFT Migration/end of Coexistence Period
    All SWIFT participants must begin using MX messages for incoming and outgoing wires.
    Some MT payment messages, such as MT 103 and MT 202, are discontinued.

How is UMB preparing for the transition?

UMB is highly engaged with SWIFT, Fedwire, and software providers as the industry moves toward ISO 20022 adoption. UMB will comply with all industry mandates and deadlines related to ISO 20022 and will work to introduce new features related to ISO 20022 in a phased approach, communicating to clients about those features as they become available.

What do I need to do?

UMB is committed to helping our clients transition to the new ISO 20022 standard. The effort to convert varies by message and technology type. If you would like to test your ISO readiness, please reach out to your Treasury Management or Institutional Custody representative.

ACTION REQUIRED

PAYMENT OR PLATFORM TYPE

Business and/or Commercial Online Banking

 Batch Wires

Swift MT

SWIFT Statements and Reporting

ERP and Third-party Providers

ACTION REQUIRED

No action required.

 

You can continue to send payments through UMB Direct and Premier Business Online Banking as you do today. UMB aims to deliver new features related to ISO 20022 in the months and years following the ISO 20022 deadlines. If the new features require you to make changes, we’ll communicate ahead of time.

No action is needed to convert to ISO 20022 prior to July 2025.

 

However, you should evaluate how the party information sent with your wires is formatted as some adjustments may be needed.

 

UMB will continue to support both the current batch wires file format and the new ISO 20022 format beyond the July 2025 deadline. Eventually, we will work with you to migrate to ISO 20022 format for batch wires, but a target date has not been set.

 

The ISO 20022 migration brings changes to party information requirements that travel with payment data. UMB recommends that you review your party information (and how it is sent to UMB today) with your internal teams and your software providers, as you will likely need to make updates to ensure compliance with ISO 20022 standards.

 

Contact your Treasury Management or Institutional Custody representative to discuss. 

Action required.

 

You can continue to send MT 103 and 202 messages to UMB until the SWIFT network discontinues the message types in November 2025. Once messages are discontinued in November 2025, you will need to convert to ISO 20022-equivalent messages. We encourage you to convert before the deadline.

 

The ISO 20022 migration brings changes to party information requirements that travel with payment data. UMB recommends that you review your party information (and how it is sent to UMB today) with your internal teams and your software providers, as you will likely need to make updates to ensure compliance with ISO 20022 standards.

 

Contact your Treasury Management or Institutional Custody representative to discuss the migration.

No action required.

 

UMB will continue to send SWIFT MT9xx messages for reporting purposes, but will use a phased approach to transition these messages to CAMT (ISO equivalent). However, UMB is already able to accept (or translate) any incoming CAMT messages.

 

Contact your Treasury Management or Institutional Custody representative if you have questions on this migration. 

Action required.

 

Contact your providers ahead of the conversion deadlines to ensure you understand their timeline for the ISO 20022 adoption and any changes you may need to make to your process.

Additional resources: