New Datos report finds businesses plan to adopt the new messaging standard driven by the ability to automate payables and receivables. FedWire March 2025 migration deadline places urgency on FIs to accelerate preparedness to meet demand from businesses or risk losing market share
CHARLOTE, N.C., Feb. 29, 2024 /PRNewswire-PRWeb/ -- The impending March 2025 migration deadline of FedWire to the ISO 20022 standard by all financial institutions (FIs) presents a strategic opportunity to revolutionize their payment infrastructure and services, according to a new Datos report, sponsored by Finzly, the pioneering provider of modern payments systems.
According to the Datos survey of US corporate finance professionals from 1,037 midsize and large organizations, around 57% are interested in using automated payables and receivables software, with 46% saying they plan to use ISO 20022 for this purpose. The survey found that 17% are already using the ISO standard. This challenges the perception that businesses are not interested in utilizing the new standard and gives FIs a clear business case for incorporating ISO 20022 standards into strategic roadmap prioritization efforts in 2024. The full report can be downloaded for free here.
ISO 20022 presents various benefits for FIs, including improved payment services, strengthened customer relationships, and diversified revenue streams. Furthermore, it offers unparalleled flexibility, interoperability, and efficiency compared to legacy formats, positioning FIs for long-term success in an increasingly digital economy.
The survey results highlight the immediate market opportunity for FIs to capitalize on existing customer demand for intelligent payment routing and embedded banking services enabled by ISO 20022 messaging standards.
With the March 2025 deadline looming, FIs face the critical task of implementing a cohesive strategy and selecting a suitable vendor partner to navigate the complexities of ISO 20022. Failure to do so could leave FIs at a competitive disadvantage and expose them to operational risks in an evolving landscape.
"The transition to ISO 20022 is more than a technical upgrade—it's a strategic move to enhance efficiency, interoperability, and security in payment systems," remarked Erika Baumann, Director of Commercial Banking & Payments for Datos, "FIs must embrace this change to remain competitive and future-proof their operations."
According to Booshan Rengachari, founder and CEO of Finzly, "As the industry normalizes ISO 20022 as the primary message standard, FIs must act decisively to secure their position in the evolving financial ecosystem. By embracing ISO 20022, FIs can meet today's demands and anticipate tomorrow's needs, driving innovation and growth in the digital age. Finzly is well-positioned to meet certification deadlines for Fedwire migration to ISO 20022 with all its Fedwire clients, while also supporting other financial institutions seeking to transition to an ISO 20022-native solution for their Fedwire processing."
To download the full Datos report, please go here.
About Finzly
Finzly empowers banks, fintechs, and businesses to seamlessly offer and access financial services in an open, connected, embedded, and real-time ecosystem. At the core of this infrastructure is FinzlyOS, a modern, cloud-based, API-enabled operating system that serves as a parallel payment processing platform to a bank's core. Finzly offers a wide range of turnkey banking solutions, including a multi-rail payment for traditional payments on ACH and wires, instant payments on FedNow and RTP, foreign exchange, trade finance, compliance, and commercial banking digital experiences. Learn more about Finzly's game-changing solutions by visiting http://www.finzly.com
About Datos
Datos Insights delivers the most comprehensive and industry-specific data and advice to the companies trusted to protect and grow the world's assets, and to the technology and service providers who support them. Staffed by experienced industry executives, researchers, and consultants, we support the world's most progressive banks, insurers, investment firms, and technology companies through a mix of insights and advisory subscriptions, data services, custom projects and consulting, conferences, and executive councils. Visit us on the web and connect with us on LinkedIn.
Media Contact
Cognito, Finzly, +1 917 246 2775, finzly@cognitomedia.com, http://www.finzly.com
SOURCE Finzly
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