JAPAN CAN EXPECT 2016 HORIZON FOR ISO 20022 STANDARD ADOPTION, BANK EXECUTIVE TELLS SIBOS

Posted September 14, 2009

HONG KONG – Japan could have three of its major securities industry processing utilities, Zengin, JASDEC and BOJ-Net, running on the ISO 20022 messaging standard by 2016, according to Masayuki Tagai, Chief Manager of the Bank of Tokyo-Mitsubishi UFJ, in remarks addressing the Standards Forum at Sibos.

“If there is a possibility that your business changes in the future, then you cannot ignore the ISO 20022 wave,” says Tagai, who projects that Zengin will use the standard on an optional basis starting in 2011, that JASDEC will adopt it through SWIFTNet in 2013 or 2014, and that BOJ-Net will move to the standard in 2016.

Tagai sees ISO 20022 as a global evolution under which firms will have to choose between adopting the standard or becoming isolated. “However, for the domestic market it is more appropriate to have two channels: proprietary in addition to ISO 20022,” he says. “XML adopters will be in a position to offer more value added services thanks to richer message information.”