Presentation from Women in Payments Symposium. Banks are architecting their internal systems around ISO 20022. Multinationals are requesting ISO 20022 as part of their RFP process. Even countries are building new payment market infrastructures on ISO 20022. But ISO 20022 isn’t exclusive to just large players. Businesses and banks of all sizes can realize the benefits. Learn what is ISO 20022, and why is it being adopted around the globe. This session will provide practical insights to take back to your organizations.

1. WOMEN IN PAYMENTS™
WHAT’S ALL THE FUSS
WITH ISO 20022?
LISA HAYS, BNY MELLON
NASREEN QUIBRIA, Q INSIGHTS

2. 2
GETTING TO KNOW US
Lisa Hays
Vice President,
Product Manager,
Treasury Services
Nasreen Quibria
Managing Director &
Founder
WHAT’S ALL THE FUSS WITH ISO 20022?

3. TODAY’S DISCUSSION…
TITLE 33WHAT’S ALL THE FUSS WITH ISO 20022?

4. TODAY’S DISCUSSION…
TITLE 44WHAT’S ALL THE FUSS WITH ISO 20022?

5. AROUND THE WORLD IN ISO 20022
5WHAT’S ALL THE FUSS WITH ISO 20022?

6. TITLE 6
Time of
Adoption
Adoption
Stage
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
Low
High
Early
Late
© 2015 Q INSIGHTS. All rights reserved
WHERE ARE WE IN THE ADOPTION
CURVE?
?

7. 7
WHAT’S HAPPENING IN THE U.S.?
WHAT’S ALL THE FUSS WITH ISO 20022?

8. WHAT’S HAPPENING IN THE U.S.?
8WHAT’S ALL THE FUSS WITH ISO 20022?

9. 9
WHAT’S HAPPENING IN THE U.S.?
WHAT’S ALL THE FUSS WITH ISO 20022?

10. 10
WHAT’S HAPPENING IN THE U.S.?
WHAT’S ALL THE FUSS WITH ISO 20022?

11. 11
WHAT’S HAPPENING IN THE U.S.?
WHAT’S ALL THE FUSS WITH ISO 20022?

12. TODAY’S DISCUSSION…
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13. 13
WHAT IS ISO 20022?
WHAT’S ALL THE FUSS WITH ISO 20022?

14. WHAT IS ISO 20022?
14WHAT’S ALL THE FUSS WITH ISO 20022?

15. 15WHAT’S ALL THE FUSS WITH ISO 20022?
WHAT IS ISO 20022?

16. 16WHAT’S ALL THE FUSS WITH ISO 20022?
WHAT IS ISO 20022?

17. 17WHAT’S ALL THE FUSS WITH ISO 20022?
WHAT IS ISO 20022?

18. TODAY’S DISCUSSION…
TITLE 18WHAT’S ALL THE FUSS WITH ISO 20022?
18

19. 19
BNY MELLON BACKGROUND WITH
ISO
• BNY Mellon decided to implement ISO into phases based on client needs and market trends
• BNY Mellon implemented ISO 20022 for payments only in November 2012
• This included USD wires, ACH, Checks, FX payments (both global and exchange payments)
• First Corporate client was implemented in November 2012
• Implemented three additional clients in 2013
• Have continued to enhance our product offering each year and rolled out XML acknowledgements in 2014
(3 Levels)
– File Acknowledgements
– Data Translation Acknowledgements
– Payment Applications Acknowledgements.
• Implemented Drawdown/Debit Origination in early 2015
• CAMT reporting will be implemented in 2015
WHAT’S ALL THE FUSS WITH ISO 20022? 19

20. BANKER’S PERSPECTIVE
• ISO allows for standardization in payments
• International capabilities / standardization
– domestic vs international
– XML ease of use (readable)
• Fit processing module (seamless, with the array of formats we currently support)
• Improve STP and efficiency
• Comprehensive Payable opportunities (less proprietary formats to support)
• BNY Mellon has the personnel with expertise to support it XML
• Preparation for the future, based on ISO in and ISO out – Leveraging the format both government and
business remittance detail
• Provides incremental value to our customers both domestic and international
• ISO 20022 allows for the inclusion and reporting of all parties to the transaction and significantly greater
transaction detail
The Pros
WHAT’S ALL THE FUSS WITH ISO 20022? 20

21. BANKER’S PERSPECTIVE
• Multiple hours of prep work to understand the concept of ISO and the schema layouts, how they are
broken out.
– Newness of the ISO XML format in the US
• Although it is a standard, the tendency of various banks may use fields in various ways
• Internal controls (approval to implement a new format)
• Processing procedures and training with rolling out a new format
• Level of information that can be provided in many cases is much more than the payment applications
can handle, NACHA, MT103 etc.
The Cons
WHAT’S ALL THE FUSS WITH ISO 20022? 21

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23. CORPORATE CASE STUDY
• Multinational Corporate had a need to centralize payments for all their entities around the world
• Goal to have a global standard for all countries for payment processing
– ISO 20022 (XML) allowed for them to eliminate country specific file formats and focus on a global
standard
– ISO allowed for all payment types (ACH, Check, FX, USD wires, etc.) to be sent as a comprehensive
payables file and eliminate multiple file sends
• BNY Mellon worked with this client to provide implementation details for the PAIN schema
• ISO format had to be designed and built on their platform
• New connectivity had to be set-up between the corporate and BNY Mellon
The Objective and Approach
WHAT’S ALL THE FUSS WITH ISO 20022? 23

24. CORPORATE CASE STUDY
• File formatting (creation and development of the file)
• Handling of acknowledgements, rejected files and separate payments, depending on where the reject
happened
• Handling of reporting
• Internal controls
– Authorizations
– Gathering all party related data and banking instructions
• Time differences with global clients
• Language barriers
The Challenges
WHAT’S ALL THE FUSS WITH ISO 20022?
24

25. CORPORATE CASE STUDY
• One standard format for all their entities around the world, minimize maintenance
• Ability to send a comprehensive payable file for their ACH, Check, USD and FX payments
• Seamless transition from one bank to another, manage bank relationships more
• Have a centralized payment processing team
• Automation of manual payments
• Improve efficiency / STP
• Reduce the need for special software (like translators)
• Increase transparency and control
The Benefits
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27. BENEFITS & OPPORTUNITIES FOR
BANKS WITH ISO 20022
27WHAT’S ALL THE FUSS WITH ISO 20022?

28. CORPORATE BENEFITS &
OPPORTUNITIES WITH ISO 20022
28WHAT’S ALL THE FUSS WITH ISO 20022?

29. CONCERNS AND CHALLENGES
29WHAT’S ALL THE FUSS WITH ISO 20022?

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Thank You – Questions?
…Let’s Connect
(o) 315.765.4359
lisa.hays@bnymellon.com
Lisa Hays |Vice President
(m) 617.388.6207
Nasreen Quibria|Founder
nasreen.quibria@qinsights.net
nasreenquibria
@nquibria

32. TITLE 3232WHAT’S ALL THE FUSS WITH ISO 20022?
• ISO: http://www.iso20022.org/
• SWIFT:
http://www.swift.com/products_services/by_type/standards/standards_what_s_new?rdct=t
• CGI – MP: http://corporates.swift.com/en/cgi-mission-and-scope
• NACHA:
https://www.nacha.org/programs/xml-ach-remittance-xml-ach
https://www2.nacha.org/webform/nacha%E2%80%99s-iso-20022-mapping-guide-tool
• Canadian Payments Association (CPA):
https://www.cdnpay.ca/imis15/eng/Our_Initiatives/eng/initiatives/ISO_20022.aspx
• European Payments Council (EPC):
http://www.europeanpaymentscouncil.eu/index.cfm/sepa-credit-transfer/iso-20022-
message-standards/
• IFX: http://www.ifxforum.org/home/
Appendix – Resources

33. THANK
YOU