Finastra, a global leader in financial software applications and marketplaces, announced today that it has successfully completed testing and certification through the Federal Reserve for ISO 20022. This achievement positions Finastra among the first vendors in the industry to secure certification for multiple solutions, reinforcing its commitment to innovation and compliance in the financial sector.
The ISO 20022 certification, which applies to Finastra’s Payments To Go, Global PAYplus, PAYplus USA, and PAYplus Connect solutions, facilitates compliance with the messaging standards for Fedwire. This milestone enables financial institutions across the United States to adopt the standards required for ISO 20022, promoting increased efficiency and innovation in payment processing.
Barry Rodrigues, EVP of Finastra’s Payments Business Unit, emphasized the significance of this achievement, stating, “Quickly and efficiently adopting the standards for ISO 20022 is simply a necessity, and it is important that we provide financial institutions with the tools they need to embrace these standards. With our many years of experience innovating in the payments space across the globe, our customers know they can rely on us to enable them to meet the evolving regulatory and compliance requirements and unlock new opportunities to drive payments innovation and enhance business value for their customers.”
ISO 20022 is a universal financial industry messaging standard that carries extensive information and is based on a common data dictionary. This standard supports payment message flows between financial institutions, their clients, and both domestic and international market infrastructures. The adoption of ISO 20022 aligns the Fedwire Funds Service message format with global standards, enhancing payment processing efficiency. Finastra’s ISO 20022-native payment solutions not only ensure compliance but also boost payment processing automation, improve fraud risk management, operational efficiencies, and customer experience.
Erika Baumann, director of commercial banking and payments at Datos Insights, highlighted the importance of this certification: “Compliance with ISO 20022 messaging standards for Fedwire ensures efficiency, data quality, and alignment with global best practices in financial messaging, so it’s a must for software providers and financial institutions across the US. By aligning with this global standard, banks and credit unions are well-positioned to improve their payment processing and promote interoperability worldwide.”
As financial institutions prepare to complete their own ISO 20022 testing before the end of 2024, Finastra’s certified solutions offer a robust and reliable pathway to compliance, empowering institutions to stay ahead in a rapidly evolving regulatory landscape.
