Understanding ISO20022 Message Types

 

So what is the fuss all about? Currently the transaction related information is sent in legacy formats (e.g. SWIFT MT) and that is expected to change with the use of ISO20022.

Let us look at the different message formats and where they are used in ISO20022. These formats will cover debit, credit, mandates, settlement, investigations and statements to name the key ones. In ISO 20022’s naming scheme, message type is described with four letters followed by three sets of numbers.

 

Message Type:

Pain.001 or Payment Initiation—this depicts a credit transfer message. It can also be used for payment of salaries and checks. Other message versions are also being published by ISO.

Other message types include Camt (Cash Management and Reporting) and  Pacs ( Payment Clearing and Settlement)

The tables below summarize the different types of message formats

 

Customer and Bank
Payment	Pain.001	Pain.002	Pain.007	Pain.008
Mandates	Pain.009	Pain.010	Pain.011	Pain.012
Overlay Services
1.       Request to Pay	Pain.013	Pain.014
2.       Enhanced Data	Remt.001	Remt.002
Payment Reporting	Camt.052	Camt.053	Camt.054

 

 

Interbank Payments
Payments	Pacs.002	Pacs.007	Pacs.008	Pacs.004
Settlement	Pacs.009	Pacs.010	Pacs.002
Reporting, Admin	Camt.052	Camt.56	Admi.0nn
Investigations	Camt.029	Camt.030

 

 

Now that we understand the different message types lets look at this chart from SWIFT to see how a legacy MT message is mapped to an ISO20022 message.

 

This is the first challenge:

-To understand what systems are impacted by the new standard

-How to map the legacy message to ISO20022.