At the ACT Annual Conference in Wales this May, treasury professionals gathered to explore one of the most significant transformations facing corporations : the transition to ISO 20022 messaging standards. A well-attended panel session addressed critical questions treasurers are grappling with as they navigate this transition. From system readiness and data requirements to global coordination challenges, the conversation provided practical insights into what finance teams need to know in order to prepare effectively. Many questions remain for treasurers as we navigate this fundamental change to financial messaging standards in real time.
The following Q&A with experts Tanveer Bhatti, Lead Policy Analyst at the Bank of England, and Anish Kapoor, CEO of AccessPay, provides expert guidance and actionable next steps:
“While ISO 20022 compliance is mandatory for impacted parties, Financial Institutions and corporates that approach it merely as a box-ticking exercise miss the opportunity to benefit from its richer, structured data. This data drives real value: better data quality, automated reconciliation, faster cash application, and more robust fraud detection. It enables straight-through processing (STP), reducing manual effort and error, and opens the door to better financial oversight. Structuring remittance information and using LEIs or PoP codes improves Sanctions Screening and counterparty risk assessment. With the right systems, corporates gain visibility, speed, and control over their cash position. This is also about future-proofing: adopting the standard now puts you ahead of the curve as other schemes and partners adopt it. The pain of transition is temporary; the upside is long – efficiency and strategic capability. You can read more about the industry’s responses on the benefits of ISO 20022 enhanced data at: https://www.bankofengland.co.uk/paper/2024/policy-statement/mandating-iso-20022-enhanced-data-in-chaps.”
-- Tanveer Bhatti, Lead Policy Analyst, Bank of England
“Absolutely. One of the clearest benefits for corporates receiving payments is the drastically improved richness and clarity of data. CAMT statements and structured remittance data remove the ambiguity of vague references and enable real automation in reconciliation. Beneficiaries will receive invoice-level detail directly in the payment message, with information like PoP codes and invoice IDs in separate, queryable fields – no more relying on cryptic 16-character references. But to capitalise on this, your ERP must be ready to ingest and process this data fully. If not, you’re leaving efficiency and insight on the table. Don’t assume receiving ISO messages alone delivers value – the internal plumbing has to be right.”
-- Anish Kapoor, CEO, AccessPay
“Yes, and the distinction between Treasury and Purchase Ledger systems is critical. Both sides will be affected, and both require structured data changes. Static data like addresses and LEIs must be updated at the source – whether in the TMS for treasury payments or the ERP for supplier payments. On the inbound side, structured remittance and enriched CAMT data offer significant benefits – but only if your ERP can accept and apply them. Disparate or decentralised structures add major complexity, making centralisation a clear enabler. Corporates with fragmented systems will find this transition far more painful than those with unified platforms and governance.”
-- Anish Kapoor, CEO, AccessPay
“If your systems can’t support ISO 20022, you face a binary choice: invest in upgrades or bring in a third party to bridge the gap. Doing nothing is not viable – eventually, payments will be rejected, cash flow disrupted, and compliance breached. Updating ERP systems can take months and significant resource; many corporates underestimate the effort. Third-party providers offer a faster, lower-risk path by transforming existing formats into bank-compliant formats, storing structured data, and managing variations across banks. If you think your current setup will be “good enough,” be prepared to pay the price in operational risk.”
-- Anish Kapoor, CEO, AccessPay
“Yes, and it’s a globally synchronised deadline. From November 2026, CHAPS payments must include at least hybrid structured addresses (with town and country split into structured fields), and we encourage fully structured addresses. Unstructured addresses will be rejected. This means your databases and systems must be able to store and export addresses in a structured format. It is worth starting early on the work involved – this isn’t just a formatting tweak, it’s a foundational data model change, and corporates must be ready.”
-- Tanveer Bhatti, Lead Policy Analyst, Bank of England
“To generate ISO 20022 payment files (like PAIN.001), ERP and payroll systems must support four critical data sets: Purpose of Payment codes, Legal Entity Identifiers, Structured Addresses, and Structured Remittance Information. This isn't just a data entry exercise – it means rethinking how and where data is stored, validated, and exported. Structured fields must map correctly into complex XML schemas, and poorly structured systems will struggle.”
-- Anish Kapoor, CEO, AccessPay
“It depends, but you’re not alone. While ISO 20022 mandates the message format (XML), transmission methods like Host-to-Host, sFTP, or APIs are at the discretion of each bank. Some are insisting on Host-to-Host for security, standardisation, or control reasons – others may not. It adds complexity and cost, but it's a bank-driven requirement, not a core feature of ISO 20022. Talk to your bank. Better yet, build flexibility into your payment architecture to handle multiple transport methods.”
-- Anish Kapoor, CEO, AccessPay
“Yes. ISO 20022 XML messages can carry huge volumes of data, but the real limit comes from clearing systems like CHAPS. These systems define strict rules on what data is required and how it must be structured, to meet local needs and to remain internationally harmonised. If a payment doesn’t meet those rules, it’s rejected – regardless of XML’s technical capacity. So, while the format is expansive, what matters is compliance with the mandated schema and placement.”
-- Tanveer Bhatti, Lead Policy Analyst, Bank of England
“Yes, and CHAPS is engaging to stay as harmonised as possible. Over 70 countries have adopted ISO 20022, but with some different timing and scope to reflect local needs. Some corporates have reported that their banks in LATAM and APAC have already mandated ISO 20022 payment initiation (pain.001). The Bank of England is continuously engaging to align with global standards like CBPR+ and HVPS+, but there remain local differences, so I recommend you engage with your banks in each region to understand their specific requirements. The CGI-MP has compiled data requirements for specific countries by transaction type in Appendix B at: https://www.swift.com/standards/market-practice/common-global-implementation/cgi-mp-working-groups.”
-- Tanveer Bhatti, Lead Policy Analyst, Bank of England
“Speak to each banking partner to get their exact requirements. Build internal capability or use a third party to transform data into bank-specific ISO XML formats. Don’t rely on banks to harmonise – own your internal data model, build a consistent output format, and test rigorously. Treat standardisation as your problem, not theirs.”
-- Anish Kapoor, CEO, AccessPay
“The Bank is supporting the uptake of enhanced data to realise benefits across the payment ecosystem, rather than only for the Bank’s benefit. As above, these benefits include cleaner payments, data that improves oversight, compliance, and innovation. LEIs and PoP codes help with Sanctions Screening and transaction monitoring. They also aim to prioritise high-impact payments in crises (e.g. payroll or property completions). Structured addresses improve precision in financial crime prevention. But this value only materialises if corporates migrate and submit clean, structured data.”
-- Tanveer Bhatti, Lead Policy Analyst, Bank of England
The transition to ISO 20022 represents more than a compliance requirement, it's a strategic opportunity for finance teams to transform their payment operations. As highlighted throughout this discussion, the benefits are substantial and measurable: enhanced data quality that enables automated reconciliation, faster cash application through structured remittance information, improved fraud detection and sanctions screening capabilities, and straight-through processing that reduces manual errors and operational risk.
However, these advantages only materialise with proper preparation. Early migration is essential to avoid operational disruption and maximize the return on investment. Whether you're updating ERP systems to handle structured addresses and LEI codes, preparing for bank-specific XML requirements, or ensuring your treasury management system can process enriched CAMT data, starting now gives you the time to implement changes methodically rather than reactively.
For finance leaders looking to turn ISO 20022 compliance into competitive advantage, comprehensive planning and the right technology partnerships are crucial.
AccessPay's ISO 20022 hub provides detailed guidance, implementation templates, and expert insights to support your transition strategy. Visit AccessPay's ISO 20022 hub to access practical resources that will help you navigate this transformation successfully and unlock the full potential of enhanced payment data.
The way payments are made in the UK is changing. Ensure your business is ready for the upcoming ISO 20022 deadlines.
Visit the ISO 20022 Knowledge Hub for tailored insights, webinars, and tools designed for CFOs, treasurers, and implementation teams.