What is ISO20022 in simple terms?

ISO20022 is a standardized language for financial messages like payments and statements. Think of it as a universal format that financial institutions and companies use to communicate with each other about money movements and related information.

In simple terms, it's like having a common language that all banks can understand, regardless of which country they're in or what internal systems they use. This standard ensures that:

• Payment instructions are clear and consistent
• Important details about transactions are not lost in translation
• Banks can process payments automatically with less manual intervention
• Financial messages can carry more detailed information than older formats

The following is an example of an ISO20022 message:

<Document xmlns="urn:iso:std:iso:20022:tech:xsd:pain.001.001.03">
    <GrpHdr>...</GrpHdr>
    <PmtInf>...</PmtInf>
</Document>