EP997: Why banks cannot afford to rely on ISO 20022 translation tools
The transition to ISO 20022 is not as complete as it seems, despite the official deadline passing. Nick Fernando of Aqua Global Solutions warns that a significant number of banks are still relying on translation tools to handle the new messaging standard—short-term fixes that are now becoming unsustainable. These tools, while convenient, fail to unlock the full potential of ISO 20022’s rich data structure and will soon be obsolete as Swift mandates more granular data fields. The real cost isn’t compliance—it’s the long-term inefficiency of manual processing and missed automation opportunities. Banks that delay modernization risk becoming uncompetitive, unable to scale or deliver fast, accurate payments. The winners will be those who invest now in native ISO 20022 systems, enabling automation, reducing errors, and unlocking new revenue through faster straight-through processing and better compliance. The future belongs to institutions that treat this transition not as a regulatory burden but as a strategic upgrade to their core infrastructure.
Translation tools are temporary fixes that will soon be obsolete due to upcoming Swift mandates on granular data fields.
Banks using translation tools face rising operational costs and will struggle to scale without native ISO 20022 automation.
Native ISO 20022 adoption enables automation of AML, sanctions checks, and exception handling, reducing manual effort by up to 70%.
ISO 20022 is becoming the global lingua franca of payments, allowing a single data set to serve multiple payment schemes with minimal modification.
Banks that modernize their infrastructure now will see year-on-year cost savings and revenue growth from improved processing speed and scalability.
…and 3 more takeaways available in PodZeus
The ISO 20022 Transition: Done or Not?
Robin Amler introduces the episode and Nick Fernando, co-founder at Aqua Global Solutions, to discuss whether the ISO 20022 transition is truly complete after the Swift deadline.
The Hidden Reality: Many Banks Still Rely on Translation Tools
“If you look at the statistics that were being produced by Swift, it was fairly obvious that a large proportion of the market was not producing the MX messages.”
Why Translation Tools Are a Short-Term Trap
“You're kicking the can down the road a few yards. And as Swift have already announced that things like the granular addresses are going to be mandated in the next year or so.”
The Long-Term Payoff: Automation, Efficiency, and Growth
“If you don't invest in the automation and you're doing everything manually... the cost of your processing is going to be very, very, very expensive.”
“And if we look at it from the other side of the coin, institutions that do not do this will not stay in business because they will not be able to compete.”
“And really all you're doing by adopting a translation is kicking the can down the road a few yards. And as Swift have already announced that things like the granular addresses are going to be mandated in the next year or so.”
“If you don't automate, then the cost of your processing is going to be very, very, very expensive.”
Host
Guest
ISO 20022
other
Nick Fernando
person
SWIFT
organization
Aqua Global Solutions
organization
Robin Amler
person
Single European Payment Area
other
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