DZ BANK has introduced a new payments platform for high-value and cross-border payments.
The reason for this are the requirements according to ISO 20022. The standard describes the format in which payments are transmitted and how the associated processes must be designed. As of 20/03/2023 the cooperative central institution has converted all transfers on the payments platform in Düsseldorf to ISO 20022. In addition, for global payments via SWIFT, the bank voluntarily waives the transitional period that applies until 2025, during which institutions may continue to use the previous procedures. The software used for this is provided by PPI AG.
DZ BANK is one of the first institutions to already fully implement the new standard. "ISO 20022 is the future universal language in payments", says Matthias Ehringer, Head of Payments & Accounts at DZ BANK. "We wanted our member and correspondent banks to quickly reap the benefits of the ISO 20022 standard for high-value and cross-border payments, so we pushed the pace."
Financial institutions that have migrated to ISO 20022 can transmit more detailed data in higher quality in a payment than with the previous formats. This makes it easier to reconcile accounts and plan better with the funds available. Both aspects also benefit corporate clients who regularly move large sums of money and are therefore looking for a partner who centrally processes global payments. "ISO 20022 will significantly increase the efficiency in the payments sector", explains Dr Thorsten Völkel, chairman of PPI AG’s Board of Directors and responsible for the payments division.
TRAVIC-Payment Hub developed by PPI natively supports ISO 20022 and can handle both the formats to be replaced, TARGET2 and EBA EURO1, and the standards used by SWIFT for cross-border payments until 2025. This means that institutions affiliated with DZ BANK remain independent of the message formats applicable in each case throughout the entire period, before, during and after the transition period.