Edward Ireland, Product Director – Financial Messaging, Bottomline
We are still in the early stages of ISO 20022 adoption. While the core implementation phase is nearing completion, the next chapter is about deriving strategic value. The technical infrastructure is largely in place, but the opportunity now lies in using ISO 20022 and real-time payments (RTP) to move from complying with regulation towards transforming processes.
Many institutions are still treating ISO 20022 as a messaging upgrade rather than a catalyst for change. Similarly, real-time payments are often framed purely around availability, but the true power of ISO 20022 and RTP goes further. Instead, they can enable enriched and structured data and immediate availability of funds, that can reshape liquidity management, treasury operations, fraud prevention and customer experience.
This shift is not unique to the UK. Globally, payment rails across regions are migrating to ISO 20022, and real-time payment infrastructures have already been mandated in many markets, including across Europe. As these capabilities mature, a consistent pattern is emerging. Initial use cases focus on execution – faster payments, instant confirmation, and real-time foreign exchange – but long-term value is unlocked only when banks adopt a mindset that allows them to extract value and when they help customers retain and use the richer data rather than strip it out in downstream systems.
Rethinking the operationalisation of ISO 20022
Rich, structured data creates the foundation for real-time cash visibility, predictive cash flow forecasting, and more dynamic liquidity management. It also enables greater automation across reconciliation and exception handling, reducing operational friction for both banks and their corporate customers.
However, banks cannot realise this value in isolation. End-to-end benefits will only materialise when corporates also embrace ISO 20022-enabled data and real-time processes. Too often, banks modernise their infrastructure while corporate workflows remain fragmented and manual. Bridging this gap presents an opportunity for banks to reposition themselves as strategic partners helping clients modernise their own finance operations.
Contending with rising fraud levels
At the same time, the industry is navigating a degree of compliance fatigue following years of large-scale regulatory overhaul, which is driving a reassessment of the bank’s role in fraud prevention. Historically, banks have absorbed much of the liability, but that model is becoming increasingly unsustainable, particularly in a real-time environment where intervention windows are measured in seconds.
As a result, customer-side verification needs to be part of the model. Banks are seeking to influence behavioural change among corporate customers. Encouraging adoption of tools such as Confirmation of Payee (CoP), name checking, positive pay and stronger account validation is becoming a priority. In markets where legacy instruments such as cheques remain prevalent – for example, the US – there is also renewed momentum to retire high-risk payment methods altogether, reducing risk and exposure for both banks and customers.
Crucially, ISO 20022 data provides a stronger foundation for this shift. Enhanced remittance information, structured data, and richer transaction context all improve fraud detection and investigation. When combined with real-time payments, banks can move from reactive controls to preventative models, which is then further strengthened through increased collaboration and data sharing across institutions – notably an area where industry attitudes are beginning to change and where early participants can set the standard for trust and security.
What’s Next?
2026 will be a pivotal year for the payments ecosystem. Banks that continue to view ISO 20022 and RTP through a narrow compliance lens risk falling behind, but those that invest in analytics, integration, and client enablement will be better positioned to deepen customer relationships and unlock new revenue opportunities. For UK banks, the next phase is about turning rich data into insight, insight into action, and action into measurable business value, both for themselves and the customers they serve.
