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Countdown to ISO 20022: What happens as the deadline nears

With the deadline for the ISO 20022 shift approaching, are financial institutions ready as legacy formats give way to a new payments language?

March 27, 2025

5 mins

Corporate & investment bankingTransaction banking
Two people discussing in a meeting room

The financial industry is in the final stretch towards the November 2025 deadline for ISO 20022 adoption. As financial institutions (FIs) and corporates prepare for this major milestone in payments messaging – when legacy formats will no longer coexist, entirely replaced by the new payment language – are FIs confident about the big switch? 

Girish Raju is Standard Chartered’s Director of Domestic Payments. At a LinkedIn Live session titled Countdown to ISO 20022: Are you ready for CBPR+? – organised by Swift and moderated by Swift’s Head of ISO 20022 Adoption and Data Quality, Nicolas Stuckens – Raju shared his experiences, challenges, and strategies for a seamless transition.

Adoption is no longer optional

The shift to ISO 20022 isn’t just about ticking off a regulatory requirement, it is a powerful opportunity for FIs to embrace richer and more structured data to drive greater efficiency. The enhanced messaging format enables better visibility, improves automation, and reduces errors benefitting the financial ecosystem. 

According to Swift, FIs must ensure that, by November 2025, all payments messages between banks, both for sending and receiving, are based on ISO 20022.  

The adoption rate of ISO 20022 stood at 32.9%, at the end of 2024. In response to the slow increment in adoption rates, Swift surveyed its largest users to forecast the ISO 20022 ramp-up towards the November 2025 deadline and said that although the community “remains broadly on track versus forecast… we will need to see significant progress.” Despite seeing slow growth in adoption rates globally, most of the countries are already aware of the big switch, with over 155 countries sending ISO 20022 messages on FINplus service as of end 2024. 

Raju, who shared that Standard Chartered currently has 38% of cross-border payments on the ISO 20022 format also stressed the importance of gradual implementation and being flexible, to adjust as markets evolve. He told the 550 FI and corporate attendees who joined the session,

The key is to start making ISO 20022 a part of your strategy now, prioritise it across your business goals, and scale up your capabilities gradually.
Girish Raju
Director of Domestic Payments

With more detailed data embedded in payment instructions, the potential for straight-through processing (STP) increases, meaning faster, error-free transactions. The shift will also unlock new possibilities for innovation, as the standardised data is easier to analyse and use in downstream processes. 

Navigating the migration challenges

Migrating to ISO 20022 comes with its share of hurdles. Raju acknowledged the complexities of migration, from managing dual systems – legacy and new – during coexistence to addressing regulatory variations across markets. In addition, FIs must bear in mind the technical upgrades needed alongside coordinating with partners and vendors to ensure a smooth transition to ISO 20022.  

“One of the biggest challenges is managing the coexistence of legacy MT and ISO 20022 formats. FIs need to ensure that their systems can handle both formats simultaneously without data loss and truncation. The need for careful testing and mapping of data between the two formats is crucial for success,” he said. 

Raju also discussed challenges such as managing multiple market regulations and aligning internal systems with different payment market infrastructures. “In markets where the ISO migration is happening in parallel with local regulations, there can be some tension between what’s required from a regulatory standpoint and what’s needed to achieve cross-border interoperability,” he explained. 

Standard Chartered, which has adopted a phased approach, plans to reach full migration by the end of 2025. Raju also emphasised the importance of aligning ISO 20022 with the institution’s broader strategy. Zooming in on some important areas he highlighted interoperability issues, data mapping, and potential risks of delays.

Financial institutions need to prioritise their business goals, engage clients, and ensure their systems are fully capable of handling richer data. Waiting until the last minute is risky. Institutions must act swiftly to avoid data loss and disruptions.
Girish Raju
Director of Domestic Payments

Engaging stakeholders

Proactive communication with clients and internal teams has been crucial to the success of the ISO 20022 migration efforts. Standard Chartered has built a dedicated ISO 20022 resource hub, hosted over 400 client training sessions, and has plans to introduce AI chatbots in 2025 to support client queries.

For FIs, the shift to ISO 20022 is meant to future-proof their operations and unlock significant efficiencies. But success requires early action, thorough testing, and ongoing collaboration with stakeholders, concludes Raju. 

The adoption to ISO 20022 marks a critical step forward for the global payments ecosystem. With less than one year remaining, there is no time to waste.  

Four actionable steps for financial institutions

With the end of the coexistence period looming, financial institutions must act now to ensure they are ready for the big switch to ISO 20022. 

1. Prioritise ISO 20022 as a long-term strategy
Embed ISO 20022 into your organisation’s long-term goals. Identify the business cases that will deliver the most significant benefits for both your institution and your clients. 

2. Collaborate with vendors and partners
Work closely with your vendors and partners to test and align systems. Develop use cases that clearly highlight operational and client benefits. The more collaborative your approach, the smoother your migration will be. 

3. Ready your clients
Clear, transparent communication with clients is vital. By equipping your teams and engaging clients early, you can minimise resistance and ensure a smooth transition to ISO 20022. It is also important to assess the impact of ISO 20022 on different client segments and product lines. FIs should also upgrade orchestration layers and data processing capabilities to handle richer, structured data.  

4. Act now. Don’t wait until the last minute
Waiting further to implement changes is a risky strategy. Testing, refining, and adjusting your systems over time will ensure you are well-prepared when the November 2025 deadline hits. 

Swift’s ISO 20022 resources

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