The new payment standard ISO 20022 will impact all financial institutions active in cross-border payments. Market infrastructures and corporates also need to prepare, though only the cross-border payments and reporting messages are subject to the CBPR+ migration timelines. Its impact will be far-reaching, and organisations will have to consider and implement solutions to process and store richer and more structured ISO 20022 messages, requiring amendments to a wide range of activities covering payments, reconciliations, Anti-Money Laundering (AML), Know Your Customer (KYC) and reporting.
The first deadline for ISO 20022 compliance is rapidly approaching, with new mandatory data requirements for CHAPS payments set to take effect in May 2025 and the current coexistence period for cross-border bank payments and messages scheduled to end on 22 November 2025. Although the deadlines for corporates are less precise, time is running out to find a trusted partner and take advantage of the changes. So, where do corporate treasury teams stand on ISO 20022, and what benefits does its implementation offer?
The new ISO 20022 messaging standard, designed to replace the legacy MT format, introduces detailed data fields for financial transactions. This is a game-changer for treasury teams, offering greater transparency and automation capabilities through standardised data input . However, the transition has largely flown under the radar outside of the regulated financial services sector. The Bank of England’s requirement for financial institutions to include Purpose of Payment (PoP) codes and Legal Entity Identifiers (LEIs) in all CHAPS transactions by May 2025 marks the beginning of this transformation, but many corporates are not yet ready.
According to the latest Finance Trends Report 2025 by AccessPay, a quarter of corporate respondents were unaware of ISO 20022, while half of those who were aware had not made any preparations. This suggests that despite the impending deadline and plenty of communication, many treasury teams are still in the dark about what ISO 20022 means for their operations and how and when they need to make the switch. However, with the right approach, this development can be harnessed to bring significant benefits to finance teams.
ISO 20022 introduces richer, more structured data into financial transactions, and its compliance requirements will eventually impact all corporates. For example, by November 2026, fully unstructured payment addresses will be rejected. This will require treasury teams to review their data collection processes, align with their banking partners, and update their systems to ensure their payments don’t fail.
Given the scale of the work involved, treasury teams must take proactive steps to avoid disruption, starting with internal education and system audits. A trusted partner who understands the complexities of ISO 20022 can help guide the transition, offering both technological support and strategic advice to ease the shift.
While the compliance aspect of ISO 20022 is important, the potential benefits of implementation extend far beyond meeting regulatory requirements. One key area where treasury teams stand to gain is fraud prevention.
The Finance Trends Report 2025 highlights that invoice fraud remains the top concern for finance teams, with 60% of respondents ranking it as their primary worry. Treasury and payment teams have traditionally relied on staff training to combat fraud, but this approach is no longer adequate in today’s complex financial environment. Fraudsters are employing increasingly sophisticated techniques, often bypassing conventional security protocols with tactics that exploit gaps in manual processes and outdated systems. By leveraging the enhanced data available through ISO 20022, corporates can strengthen their fraud prevention measures. The detailed information available in ISO 20022 messages enables improved verification processes, making it harder for fraudulent transactions to slip through the cracks.
Another major benefit is improved reconciliation. Treasury and payment teams often face challenges reconciling transactions due to incomplete or inaccurate data. ISO 20022’s structured format allows for more precise payment tracking, reducing errors and speeding up the reconciliation process. This enhanced visibility also frees up valuable time for treasury teams, allowing them to focus on strategic rather than operational tasks .
ISO 20022 and Operational Efficiency
For many organisations, efforts to improve operational efficiency and reduce operating costs continues to be a major focus. And digital transformation is a key component of this. According to the Finance Trends Report 2025, only 13% of companies have fully digitised their finance operations whilst the majority (69%) are in the midst of this journey, grappling with a mix of manual and digital processes. The transition to ISO 20022 presents an opportunity to increase the benefits case and future-proof certain activities by automating labour intensive tasks, such as payment reconciliation, fraud detection and sanctions screening, freeing up teams to focus on higher-value activities like financial analysis and strategy.
The transition to ISO 20022 is not just about compliance; it’s about positioning treasury teams for future success. By embracing this new standard, treasury leaders can modernise their operations, update their cash dashboards, improve the visibility of key payment flows, and strengthen their fraud prevention measures. However, the task can be significant and those who delay may find themselves struggling to catch up and chasing scarce external resources.
For treasury teams that are still unprepared, now is the time to act. Engaging with a trusted partner who understands the complexities of ISO 20022 can help ease the transition, ensuring compliance and unlocking the full potential of the new standard. With the May 2025 deadline fast approaching, there is no time to waste.
Learn more about the findings in the Finance Trends Report 2025 and discover how treasury teams are tackling digital transformation and ISO 20022. Download the report here.
The way payments are made in the UK is changing. Ensure your business is ready for the upcoming ISO 20022 deadlines.
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