Why ISO Compliance May Not Be as Ubiquitous as It Seems

This update focuses on the behind-the-scenes movement of money and data through the ISO 20022 standard. While it sounds like technical jargon for bankers, it directly impacts how quickly and accurately your customers' financing applications and payments are processed. The industry is approaching a firm November deadline for 'structured addresses,' a change meant to reduce transaction errors and fraud. However, many financial institutions are lagging behind, relying on manual workarounds rather than true technical compliance. For retailers and operators, this means the 'plumbing' of the financial world is currently in a state of flux. If your lending partners aren't fully compliant, you could see a slight uptick in delayed settlements or funding glitches as banks struggle with the new data requirements. The transition from older messaging systems (MT) to the newer standard (ISO) is intended to make cross-border and high-volume payments seamless, but the lack of automation—and the failure of AI to solve these compliance gaps yet—means manual errors remain a risk. Keep an eye on your settlement reports this fall. Ensure your financing providers are prepared for the November shift to avoid interruptions in your cash flow or customer payment processing.

Source: Finextra — Lending

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