The latest Independent Banker magazine spotlights what community bankers need to know about the Fedwire Funds Service’s conversion to the ISO 20022 message format.
New Article: Noting that the Fed recently delayed the transition of the Federal Reserve Banks’ real-time electronic funds transfer system until July 14, ICBA’s Kari Mitchum writes that the change will ensure consistent payment data is formatted and usable across the industry.
Consistent Payment Data: “All entities will use the same set of rules and data fields to exchange information, which eliminates the need for complex data translations, reduces errors and improves processing speeds,” writes Mitchum, ICBA’s vice president of payments policy.
Background: ISO 20022 is the format used for FedNow transactions. The Fed’s ICBA-supported delay of the transition until July 14 is designed to give financial institutions and vendors more time to prepare.
More: A recent ICBA blog post from Mitchum features resources and key considerations for community banks, including peer testing and staff training.
