Published: February 28, 2019
Includes anticipated business benefits of ISO 20022.
In our ongoing case study series, the latest release details how a Canadian based global insurance company is improving its digital payments capabilities. Through targeted investments in its payments technology to streamline its payment processes, the organization shares how these changes will enhance its client relationships and, at the same time, prepare the business for a modernized payments system in Canada, including adoption of ISO 20022.
Highlights of these insights include:
- Greater interoperability between disparate technology systems involved in the capture and storage of data that can travel with payments
- Benefits of transmitting payments with the ISO 20022 global messaging standard
- Improved client experience through a Request to Pay feature, based on real-time payments pilot from its other operating regions
- More payment choices for clients
- Expedited payments that reduce claims time and delivers on client needs
Unique for this study is the focus placed on the continued investment in a payments hub to streamline and standardize current payments processing operations. Additionally, the lessons learned by the insurance company through its introduction of ISO 20022 messaging for wire payments can be a useful model for others embarking on the ISO journey. The organization’s initiation of pilots for real-time payments in countries where the infrastructure already exists and its overall commitment to digital transformation and payments innovation is also highlighted. In addition, details on cost savings due to anticipated reduction of cheque usage -- as ISO-enabled payments provide the potential of replacing cheques -- are also captured in the study.
This is the third case study in our series of case studies, in collaboration between Payments Canada and EY. Each case study focuses on the benefits of payments modernization and ISO 20022 in particular, for Canadian businesses, governments and other organizations.
Payments Modernization and ISO 20022
On the same topic, Payments Canada and EY’s 2018 report “How can payments modernization benefit Canadian businesses? Evaluating the cost for payments processing” indicated that Canadian businesses spend more than $3 billion annually to initiate, process, and receive payments. Adoption of ISO 20022 is anticipated to reduce these costs substantially. The ISO 20022 message standard will underpin all of Canada’s payment systems.
To learn more about Payments Canada’s Modernization initiative, visit modernization.payments.ca
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