For years financial institutions and other market participants have been employing uniform European payments solutions. An important step on the way to a global, unified payments infrastructure was the consolidation of TARGET2 and TARGET2-Securities (T2/T2S consolidation) within the Eurosystem. Core elements of the project are the introduction of a central liquidity management and the establishment of the ISO 20022 standard.
The 2020 vision of the Eurosystem is to make the market infrastructure in the payments sector sustainable for the future in response to international requirements. One of the sub-projects pursued in this context was the consolidation of TARGET2 (T2) and TARGET2-Securities (T2S). The SWIFTNet FIN messages (in MT format) previously used within the TARGET2 system for payments were hence replaced by ISO 20022-compliant MX messages in XML format. At the same time, a new communication architecture was introduced.
In addition to the European changes, financial institutions have to master other challenges, too. Because at the same time, international payments are also switching to ISO 20022. The challenges are enormous, as ISO is by no means the same everywhere. And with the migration, the consolidation in the Eurosystem is not yet complete, either. Preparations for ECMS (European Collateral Management System) are in full swing, with launch planned for 2024.
The payments products developed by PPI help financial institutions to stay up to date on this topic. TRAVIC-Payment Hub, for example, is based on the ISO 20022 format and is thus optimally prepared for the challenges of the new ISO landscape.
The PPI consulting team for the payments sector actively supports and accompanies you through all phases of the ISO 20022 migration and consolidation. Get in touch with us for more information.