Finastra Unveils ISO 20022 Tool for Banking Sector
Finastra has introduced a Transformation Service that converts MT formatted messages to the ISO 20022 MX messaging standard.
The service aims to help financial institutions comply with Swift's November 2025 deadline for implementing cross-border payments and reporting plus (CBPR+) regulations.
ISO 20022 is a global standard for electronic data interchange between financial institutions that defines a common platform for financial services messaging.
It provides a methodology for creating consistent message standards across all business domains.
Addressing migration challenges
The transition from MT to MX messaging standards presents technical challenges for many institutions, requiring significant systems adaptation.
“While Swift's migration from MT to MX ISO 20022 messaging standards comes with many benefits, it can also present significant challenges for banks and other financial institutions.
“These institutions must ensure that their back-office systems can send and receive MX messages to and from their counterparty – or face serious business disruption,” says Radha Suvarna, Chief Product Officer, Payments at Finastra.
Finastra developed the service after consultation with customers who expressed concerns about meeting the regulatory deadline while maintaining operational continuity.
The service provides flexibility for strategic planning of future system upgrades, allowing institutions to manage the transition at their own pace.
Technical implementation
The Transformation Service functions as an API-based microservice within the Finastra Financial Messaging platform. API (Application Programming Interface) technology allows different software systems to communicate and share data with each other through defined protocols.
Customers operating on a Software-as-a-Service (SaaS) model can access the service through managed workflows.
“While Swift's migration from MT to MX ISO 20022 messaging standards comes with many benefits, it can also present significant challenges for banks and other financial institutions"
SaaS is a software distribution model where applications are hosted by a service provider and made available to customers over the internet.
The service is also available as a consumable API through Finastra Financial Messaging's new Self-Serve Portal, which includes a "try before you buy" option for potential customers.
Ongoing compliance and flexibility
The service maintains compatibility with annual market infrastructure-driven message standard releases, ensuring institutions remain compliant with evolving regulations.
It offers message handling options that facilitate smooth transformation processes between different formats.
Regular updates to the libraries ensure that enrichments meet current market standards and customer requirements.
Finastra has received validation as a Swift Compatible Interface and is ready for CBPR+ implementation. CBPR+ refers to the set of guidelines that define how ISO 20022 messages should be used for cross-border payments.
Finastra is trusted by approximately 8,100 financial institutions, including 45 of the world's top 50 banks, and is committed to unlocking the potential of people, businesses and communities through technology and collaboration.
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