2022: A critical juncture for the payments industry
The payments landscape is at an important crossroads. Several critical ISO 20022 milestones are approaching in November, momentum is building for SWIFT’s new tool for low-value cross-border payments, some of the major payment market infrastructures are looking to interlink domestic instant payment schemes, and blockchain and cryptocurrencies are shaping up to transform the cross-border payment business in the longer term. 2022 is set to be a year of significant change.
With so many developments afoot, The Banker’s Masterclass series delves into the upcoming changes. Divided into four video chapters, each taking on a different element of the changing global payments landscape, the series sees Liz Lumley, Deputy Editor of The Banker, question experts on the challenges that remain and the strategies for moving forward. And their conclusion was clear: coexistence and collaboration will be essential in a cross-border world.
See below for a summary of each discussion and a link to the full video.
Click here for a downloadable PDF copy of The Banker article, ‘Coexistence and collaboration in a cross-border world’
Chapter 1: A period of coexistence
With the ISO 2022 migration looming, Deutsche Bank’s Marc Recker and SWIFT’s Thierry Chilosi discuss the industry’s readiness as well as the challenges of the coexistence phase – where users will need to be ready to process both the old (MT) and the new (MX) messaging formats. Delving into SWIFT’s Transaction Manager, they explain the importance of managing transactions centrally
Chapter 2: SMEs are Swift Go
The introduction of SWIFT gpi in 2017 brought significant improvements to the cross-border payments space, including increased transparency, tracking and predictability. However, more can still be achieved – particularly when it comes to low-value payments. Wells Fargo’s Joanne Strobel and Deutsche Bank’s Marc Recker discuss the initiatives that the industry is investing in to bring the industry to next level, including SWIFT Go
Chapter 3: Interlinking instant payment schemes
Despite initial skepticism in some parts, domestic instant payment schemes have been a runaway success. The next step is to bring these faster transactions to the cross-border payments industry, through the interlinking of different real-time or instant infrastructures around the world. SWIFT’s Matt Loos and Deutsche Bank’s Bernd Waizenhoefer explore the feasibility and challenges for banks looking to make instant payments global
Chapter 4: Have you considered the blockchain?
Looking beyond the benefits of ISO 20022, SWIFT Go and globally interconnected instant payment schemes, digital currencies based on blockchain technology have huge potential to drive transformation. Deutsche Bank’s Manuel Klein and The Banker’s Liz Lumley sit down to identify the use cases of digital currencies and how they can benefit the industry as a whole.