Published: June 24, 2019
For the fourth installment in our case study series, we decided to look inwards and examine our own processes and how adoption of ISO 20022 - the global payments messaging standard - will help our organization save time and costs and optimize our vendor and customer experience.
As the study details, significant steps have already been taken to mature payments and treasury processes. Further, an implementation strategy for migrating Enterprise Resource Planning (ERP) and other systems to become ISO 20022 compatible has been established to improve the rate of payments traveling from sender to receiver without manual intervention.
Some of the anticipated benefits of ISO 20022 adoption include:
- Efficiency gains associated with automated ERP item entry, automated invoice to payment matching and fewer supplier inquiries due to ISO 20022-enabled data-rich payments
- Improved accuracy of cash forecasting and enhanced analytics on proprietary payments from data-rich ISO 20022 remittances
- Greater visibility and traceability into international payments which are currently sent by wire
Though the focus is on ISO 20022, use cases for real-time payments and (Automated Funds Transfer) AFT enhancements in relation to payroll process improvements are also explored.
For more on the benefits of payments Modernization and, in particular, ISO 20022 to Canadian businesses, governments and other organizations, read our entire case study series.
Payments Modernization and ISO 20022
The Payments Canada and EY’s 2018 report “How can payments modernization benefit Canadian businesses? Evaluating the cost for payments processing” indicated that Canadian businesses spend more than $3 billion annually to initiate, process and receive payments. Adoption of ISO 20022 is anticipated to reduce these costs substantially. The ISO 20022 message standard will underpin all of Canada’s payment systems.
To learn more about Payments Canada’s Modernization initiative, visit modernization.payments.ca