During the ‘Extending ISO 20022 benefits to corporates’ panel discussion at last month’s Sibos event, a key theme to emerge was the potential for the new standard for financial messages to facilitate improved access to financial instruments that support trade.
ISO 20022 facilitates trade digitalization and automation in both the accounts payable and accounts receivable reconciliation process. For example, the use of structured remittance information allows corporates to batch several invoices into a single payment for the same supplier and still provide the required information for an automated reconciliation process at the supplier’s end.
It enables trade finance solutions like letters of credit and guarantee to be processed faster, while reducing the cost of compliance and the need to handle physical documents
“It enables trade finance solutions like letters of credit and guarantee to be processed faster, while reducing the cost of compliance and the need to handle physical documents,” explains Tesy Mathew, group head of cash product management, global transaction services DBS Bank. “To date, 97% of our supply-chain finance clients have adopted our digital tools end-to-end to optimise their processes, better anticipate issues and improve the client experience.”
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