FinTech Magazine January 2024 | Page 55

introduction of FedNow , this will likely change significantly in 2024 .
Banks should make an effort to adopt TCH RTP as soon as possible in order to gain traction and establish their infrastructure so that , when FedNow rolls out , they will be able to hit the ground running .
4 . ISO20022 compliance : Many national payment infrastructures have already adopted the standards , and in 2025 adoption will be mandatory for both the Federal Reserve for wire instructions and SWIFT .
SWIFT will have a “ coexistence ” strategy in place during the early part of 2024 ( where both ISO 15022 – commonly referred to as “ MT Messages ” – and ISO 20022 messages can both be used ), but the Federal Reserve is making a hard switch in March 2025 where everyone will need to be compliant overnight .
Banks and other financial institutions have long-established payment infrastructures with many applications still written in Cobol . Banks will need help getting these infrastructures to send and receive compliant messages with these two mission-critical endpoints . It is not clear how much preparation work has been completed so far , but there will be no room for error after 2024 .
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