The full adoption of the ISO 20022 messaging format for both incoming and outgoing wire transfers means Central 1 members and clients now have access to significantly more efficient payment processing and improved data analytics opportunities.

“As one of the largest payments processors for Canadian financial institutions, we are focused on payment innovations that help our members and clients compete in an increasingly complex operating environment,” said Erick Wong, Chief Product Officer. “This development demonstrates the strength of the cooperative ecosystem in driving payment innovations. They can now bring the value of data-rich wire payments to their customers, which is particularly important for Canadian businesses who will experience many benefits, including greater payment automation, faster reconciliation and the ability to unlock new opportunities with more data.”

ISO 20022 is a rich, structured and global data standard for financial information in the payments, FX, trade finance and securities markets. Central 1 made a strategic shift to a new platform, specifically designed to enable both the reception and transmission of ISO 20022 MX, as part of Canada’s Payments Modernization journey. Central 1 is among the first in Canada to apply the data standard for both incoming and outgoing wires, surpassing Swift deadlines by two years.

The data-rich ISO 20022 format enables several features and benefits:• Structured information travelling with each payment reduces ambiguity and eliminates the need for manual entries, enabling faster payment reconciliation and streamlined accounting.• Enhanced data flow creates monetization opportunities and simplifies anti-money laundering reporting. • Consistent standards simplify cross-border payments as the standard is adopted around the world.

“We are pleased to see Central 1’s progress in Canada in bringing the benefits of ISO 20022 to its members and clients across the country” said Kevin O’Neil, Head of Canada, Swift. “The rich and structured data enabled by ISO 20022 is an essential element of the next generation of payments. It is the foundation for financial institutions to work smarter and faster, leading to greater operational efficiency, improved data analytics and compliance, new opportunities for innovation and enhanced customer experience.”

The adoption of ISO 20022 is just one element of Canada’s payments modernization program, which includes the enhancement of all centralized payments systems, rules and standards. Central 1 is supporting Canada’s credit unions on this journey. To date that has included the transition to Lynx, the new high-value payment system, the launch of Interac e-Transfer for Business, the application of Enterprise Fraud Management support across cheques and wires and, in the future, the release of the Real-Time Rail.