LFSBL initiates first conference for ISO20022 message standard in Colombo
Lanka Financial Services Bureau Ltd (LFSBL) has initiated the first ever Conference/Training Session for the ISO20022 message standards of the payments/settlements system worldwide on May 29, in Colombo.
LFSBL is the only Certified SWIFT Shared Infrastructures Provider in Sri Lanka and owned by twenty two shareholders in banking and the financial industry, which include the Central Bank of Sri Lanka, key state banks, leading commercial banks, primary dealers and the Central Depository System of Sri Lanka. The first session is dedicated to the team from the Royal Monetary Authority of Bhutan.
This is a significant initiative in the process of change management from the current standards of financial messaging to the ISO 20022 standards, which technically transform messages to XML format. Messaging standard is a Global initiative by SWIFT (Society for Worldwide Interbank Telecommunications) as a mandatory change in their global network.
Correspondent banking has extraordinary reach, facilitating cross-border payments, their confirmations and account statements the world over. The processes are connected to a highly reliable robust, secure network of financial institutions that instruct one another with a common, well-established language.
The next stage of transformation will come from data with better-quality in those payments processes, which will further improve the efficiency, speed and compliance of payments, enabling better customer experience and opportunities for extending services to new customers and businesses.
SWIFT ISO20022 drives the progress towards better quality of data in payments is paramount as it will bring significant benefits in enhanced automation, faster processing, more effective reconciliations, improved levels inmitigation of financial crime risk and better data-driven insights on the purpose and context for payments.
In order to realize these significant benefits to the banking and financial industry, a modern data standard is required that is data rich, ensures consistent interpretation and is accepted across the industries and world. ISO 20022 is that standard. It is an open international data standard being adopted around the world for domestic payments systems and will be adopted by the SWIFT community for cross-border payments and reporting.
Better payments data cannot be achieved by any one institution alone; it must be adopted in a coordinated way across the global payments ecosystem. It must be comprehensive, well-structured and correctly labelled data must be sourced from clients at the point of payment initiation and carried across payment systems and correspondents in a consistent manner.
LFSBL has also planned to offer ‘customized training’, advisory, technical support and implementation to the local SWIFT/Banking community and SAARC region. LFSBL Chief Information Officer Hasitha Range Bandara stated that the institutions must make preparations in advance, identifying the business, technical and operational requirements to be adapted with the ISO 20022 in order to make sure a seamless migration to the new standard. GM/CEO Mihindu Rajaratne mentioned that LFSBL has partnered with Global Certified Consultants to support the change management process of ISO 20022 to all potential customers and leading the way to support the SWIFT initiative and local initiatives driven by the Central Bank of Sri Lanka.
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