The Coming Age of Interoperability
Interoperability is now more achievable for FIs than ever before due to the move of payment formats adopting the industry standard of ISO 20022. Historically, interoperability has been a product of connections of payment services rather than payment processing at the financial institution (FI) level. Through the adoption of ISO 20022, FIs will be able to offer their clients alternative options for payment processing. No longer will financial institutions need to abide by the classic First In, First Out rules for each payment channel, but offer an interoperable service than can be used for all payment channels. With all of the necessary payment details built into the message format, financial institutions are able to change the routing of a payment on the fly or build-in configuration rules to keep the payments processing—thus removing the manual intervention enabling banks to further adopt frictionless payments.