Use cases for ISO 20022
Against this backdrop, Standard Chartered is looking at how the data-driven insights supported by ISO 20022 can play a critical role in helping corporate clients make better decisions. For example, where cash flow forecasting is concerned, the bank is looking at ways of using predictive data analytics to help develop a new cash flow forecasting mechanism.
“In the 2022 Deloitte Global Corporate Treasury Survey, 60% of respondents said that poor quality of data is the number one challenge to improving the accuracy of cash flow forecasting,” comments Domingo. She notes that by capturing richer information, ISO 20022 presents an opportunity for treasurers to take advantage of descriptive and actionable data insights.
“We’re also very excited about the richer cash reporting formats that camt messages will provide,” Domingo adds. “These will accommodate enhanced, enriched data that can then be integrated into analytics solutions, either developed in-house by corporates themselves, or via their banking partners.” Other use cases include the use of payment network analytics to help treasurers increase the efficiency of their payments operations and reduce fraud risk.
At the same time, the ability to share balance and transaction information through APIs is helping treasurers improve their working capital decisions. “Together with the richer information that comes with ISO 20022, this will lead to a transformation in terms of how treasurers can manage their working capital,” comments Stansbury.
Adopting multi-bank connectivity
Standard Chartered’s larger multinational clients have been moving towards a strategy of centralisation, standardisation and automation, which tends to include standardising the company’s banking connectivity. With ERP providers such as SAP providing multi-bank connectivity solutions, and a new breed of fintech players connecting multiple ERP environments to multiple banking providers, corporates have more opportunities than ever to adopt multi-bank connectivity systems.
“As part of this, we want to encourage our clients to take the opportunity to move towards industry standard formats such as ISO 20022,” says Domingo. Alongside the other features of the new standard, she says corporates can also benefit from the unique end-to-end transaction reference (UETR), which enables banks and other providers to give corporates access to payment status tracking solutions.
“For example, we are looking to develop a new Straight2Bank quick serve solution that will allow our corporate clients to enable their staff or counterparties, who don’t necessarily have login access to Straight2Bank, the ability to query payment status by simply using the UETR,” she says. “This will provide faster query resolution and improves the overall payment tracking process.”
