After Swift postponed the ISO 20022 migration from November 2022 to March 2023, many organizations shifted their focus from the migration to other company priorities. Now that the first phase of the ISO 20022 migration is live, financial institutions are refocusing on this critical migration to ensure that their systems are in place before the deadline in November 2025.
Many organizations have already begun to process MX messages, and it is imperative for smooth operation that all financial institutions are aware of any counterparties using MX messages, and that they are prepared to process this new standard.
As a reminder, the ISO 20022 migration is intended to streamline communications between financial institutions and their counterparties. ISO messages provide enhanced data quality, as well as increased efficiency, interoperability, and standardization of global financial communication. Many regulatory requirements are also adopting the ISO 20022 standard, and it behooves financial institutions to meet these requirements as soon as possible.
In this initial phase of the ISO migration, Swift MT message types 1, 2, and 9 are in a co-existence phase with their MX equivalent messages. During this period, organizations can still receive MT messages from Swift, embedded within MX messages that are translated with Swift’s In-flow Translation tool.
However, MT message types 1, 2, and 9 will be decommissioned by November 2025, and organizations should plan and prepare their course of action to avoid making last minute changes, which could result in delays to normal message processing.
Additionally, while Swift are currently providing the translation service free-of-charge, fees will likely be assessed in the future, and the tool will only be available until November 2025. As such, organizations should consider their long-term plans for processing MX messages, including whether to upgrade their in-house systems to accept MX messages or assess an external processing solution.
For organizations that have this basic configuration, the time is approaching to consider more cost-effective, robust, and streamlined ways of transacting with the new ISO standard. With our in-house Swift infrastructure and expertise, Axletree can help your organization upgrade your MX processing capabilities in the following ways:
1. Symmetree – Our enterprise integration solution
- Symmetree translates to any message format an organization prefers, including but not limited to: MX, MT, CSV, BAI, and other proprietary formats. If your organization does not want to move away from using MT messages, Axletree can continue to provide translation services to you beyond 2025, to your back-office system and in your preferred message format.
2. Message Header Creation using Symmetree
- MX messages require technical headers to be applied to the top of all messages to allow processing through the Swift network, but not all back-office systems have this inherent capability to build this header. To meet this requirement without the need to update your back-office system, organizations can use Symmetree to build the unique header for each message before they are transmitted to Swift. Similarly, Symmetree can remove the header on incoming messages before transmitting to your organization for processing.
3. Message Translation Result Notifications
- Certain organizations might only want to receive the MT message embedded within an MX message, but the decoupling of the messages results in the loss of the additional details the MX message provides. If your organization would still like to access this additional information without receiving the MX message, Axletree can create direct email notifications containing the translation results and the additional data from the MX message. As such, your organization can still receive the enriched information of an MX message, while leaving the actual processing of the MX message to Axletree.
4. Message Dashboard
- Axletree can provide your organization with access to an enhanced message dashboard through Symmetree, in which your team can access complete end-to-end details of each message, complete with information including:
- Full message details
- Original message type & subsequent translation results
- Truncated/missing information
- Payment reconciliation
- Payment controls
- Multiple levels of payment approvals
- This information is presented in easy-to-use tabs that are clear, precise, and user-friendly.
Although the deadline for Phase 1 of the ISO 20022 migration is in November 2025, it is crucial for organizations to prepare their systems to process MX messages. Organizations should take full advantage of the data enrichment and enhanced message processing that the ISO migration provides. Axletree can help organizations stay ahead of the curve and continue transacting at the highest caliber within the industry. As our cost-effective and industry-leading financial message translation and integration tool, Symmetree can help your organization meet all industry requirements while servicing your unique transaction needs.
If your organization has not yet prepared for the migration, reach out to us and one of our friendly experts can help map out a bespoke plan of action based on your specific business needs.
March 28, 2023
