VIETNAM NATIONAL UNIVERSITY, HANOIINTERNATIONAL SCHOOL ============= HOANG VAN HIEU ADOPTION AND IMPLEMENTATION OF ISO20022 IN INTERNATIONAL REMITTANCE SERVICES AT BIDV PAYMENT CENTER:
INTRODUCTION
Background to the study
Banking is a vital sector that helps control inflation, stabilize currency value and exchange rates, and enhance macroeconomic and investment environments International payment services, managed through banks' off-balance-sheet assets, meet customers’ global financial needs while generating additional revenue and strengthening the bank’s reputation To develop international remittance services, banks must adhere to international standards like ISO 20022, the advanced global standard for financial messaging created by SWIFT, which ensures consistent, structured data for all types of financial transactions.
The Bank for Investment and Development of Vietnam (BIDV) is one of the four largest state-owned commercial banks in Vietnam, with a widespread network of over 1,000 domestic branches and transaction offices It boasts a robust international presence through correspondent banking relationships in more than 80 countries and territories, establishing itself as a key player in Vietnam’s banking sector with extensive domestic and global operations.
In 2023, BIDV’s total assets surpassed two quadrillion VND (approximately USD 85 billion), establishing it as a leading financial intermediary in Vietnam’s banking industry International remittance services are a vital part of BIDV’s core offerings, with the bank processing around 1.5 million cross-border transactions in 2022, amounting to over USD 15 billion in volume These transactions cover various purposes, including personal fund transfers, education payments, trade finance settlements, and foreign direct investment inflows The Payment Center, in collaboration with the Digital Banking Center and the International Department, oversees these cross-border transactions, primarily utilizing the SWIFT MT messaging standard—such as MT103 for individual transfers and MT202 for payments between financial institutions—to ensure secure and efficient operations.
The growth in transaction volumes and increased regulatory scrutiny have highlighted the limitations of the MT format To develop international remittance services, BIDV must adhere to global standards like ISO20022, which is the most advanced payment message standard created by SWIFT, offering structured and comprehensive financial data for all transaction types Adopting ISO20022 presents significant opportunities for financial institutions, including improved operational efficiency, enhanced customer experience, and the development of innovative services Recognizing its potential, BIDV Payment Center has been working to implement ISO20022 since 2021, considering its vital role in modernizing banking operations Currently, there is a notable research gap regarding solutions and guidelines for overcoming challenges during ISO20022 adoption, particularly within Vietnamese banks, underscoring the need for studies to evaluate its benefits and drawbacks in the Vietnamese banking sector.
Research questions and research objectives
Implementing ISO20022 into the BIDV payment message system is expected to enhance the overall quality and efficiency of payment transactions This study aims to examine the impact of ISO20022 adoption on the BIDV Payment Center's payment system performance By analyzing the relationship between ISO20022 implementation and the adopted methods, the research seeks to identify strategies that can improve payment process efficiency at BIDV Adopting ISO20022 is a crucial step toward modernizing the bank’s payment infrastructure, ultimately leading to more secure, faster, and reliable financial transactions.
This study investigates the primary challenges faced by BIDV Payment Center in implementing ISO 20022 for international remittance services, highlighting the technical and operational hurdles involved It examines the strategic and operational benefits that ISO 20022 is expected to bring to BIDV’s international payment operations, such as improved data quality and enhanced payment processing efficiency The research also offers insights into how Vietnamese financial institutions can effectively plan and execute ISO 20022 adoption to ensure seamless integration Key objectives include analyzing BIDV’s current international remittance process, identifying limitations of the legacy MT messaging format prior to ISO 20022 implementation in September 2023, and exploring technical, operational, and strategic considerations for successful adoption.
3 organizational challenges that BIDV encountered during the adoption of ISO
20022 from 2021 to 2023 Next, assessing the expected and actual benefits of ISO
The 2022 implementation focused on enhancing payment quality, ensuring compliance, improving customer experience, and automating processes Additionally, a strategic roadmap was developed, accompanied by practical recommendations to facilitate a successful, phased adoption of ISO 20022 within BIDV and similar financial institutions This approach aims to optimize payment systems, boost operational efficiency, and meet industry standards for secure and seamless financial transactions.
Scope of research
This study explores the adoption and implementation of the ISO 20022 messaging standard within BIDV Payment Center, focusing on international remittance services It analyzes the current remittance processing system, highlights challenges of the legacy SWIFT MT format, and assesses BIDV’s transition strategy to ISO 20022 The research concentrates on internal operations at BIDV’s Payment and Digital Banking Centers, based on surveys and interviews with key staff involved in international payments and system integration It captures the initial post-implementation outcomes following BIDV’s adoption of ISO 20022 in late 2023, covering pre-implementation conditions and immediate results The study emphasizes operational, technical, and managerial aspects of the transition, serving as a case study for financial institutions undertaking similar modernization efforts The research timeframe spans from 2021 to 2023, with projections for two years after 2023 as BIDV aims for full ISO 20022 compliance.
The study's data scope includes internal and external factors related to ISO20022 and SWIFT that affect the BIDV Payment Center.
Research methods
This study is expected to use multiple research methods Each method will clarify an objective as described below:
Research Objective Research Objective Summary
1 Analyze the Current State of ISO20022 Adoption)
The case study method helps to point out the real situation of applying the ISO20022 standard in payment messages in Vietnamese banks and other international banks
2 Identify Challenges in the Implementation Process
Interviews and discussions with the people who are in charge of the project would bring the most reliable feedback about some obstacles for the team during the process
3 Evaluate the Opportunities Presented by ISO20022 Adoption
These mentioned methods also provide a future view after research and review of the team about some opportunities that BIDV can achieve after the implementation of ISO20022
SWOT analysis 4 Recommend Strategies for Successful
SWOT analysis is a powerful tool to review every aspect of the project to provide better suggestions for the next phase of the project or feedback to the legacy
Figure 1 Summary of research method and research objectives
Source: Compiled by author 1.4.1 Case Study Method
This article presents a case study on ISO20022 adoption at BIDV using a structured data collection approach Key methods included document analysis of internal reports, implementation plans, progress reports, and technical documents to assess the project's development In-depth interviews with IT department members and project managers provided valuable insights into the current status and key milestones achieved in the implementation process.
The rationale behind using a case study was to obtain detailed, in-depth information
This article provides a comprehensive analysis of the ISO20022 adoption process, highlighting the specific steps taken and current progress Internal reports from leading global banks such as JP Morgan Chase, Citibank, and Deutsche Bank were collected and analyzed to offer valuable insights for BIDV’s implementation Additionally, interview responses provided updates on upcoming phases of ISO20022 deployment at BIDV Data collection was conducted from January 2023 to May 2023, ensuring an up-to-date understanding of the adoption landscape.
The author utilized qualitative interviews and focus group discussions for objective
2 Data collection involved conducting in-depth interviews with employees, managers, and technical staff to identify specific challenges in the adoption process, such as technical, financial, and regulatory issues Additionally, focus group discussions were organized with teams involved in the ISO20022 implementation to gather broader perspectives on common challenges across various departments The rationale for using these qualitative methods was that interviews and focus groups provide rich, detailed insights into the challenges faced, capturing experiences and perceptions directly from those involved in the process Some interviews with managers provided the author with a deeper understanding of the detailed implementation plans, and key decisions made during both the preparation and implementation phases were also revealed The data collection took place from May 2023 to June 2023.
The author conducted qualitative interviews and focus groups to explore perceived opportunities of ISO20022 adoption, gathering insights from management, IT staff, and service operators about benefits like increased efficiency and improved processing performance Focus groups with key stakeholders helped identify strategic advantages and potential improvements in remittance services These qualitative methods provided rich insights into the strategic value and perceived benefits of ISO20022 from diverse perspectives A key finding was that BIDV’s ongoing upgrade to an advanced core banking system would enhance payment system performance as it adopts ISO20022 Additionally, management interviews revealed that BIDV’s current focus on modernizing its banking and payment systems aligns with the strategic adoption of ISO20022.
6 implementation is a key priority, with the Board of Directors planning to introduce special policies to support it The data collection period spanned from June 2023 to August 2023.
The author conducted a comprehensive SWOT analysis to evaluate the strengths, weaknesses, opportunities, and threats associated with adopting ISO20022 Data was collected through interviews and surveys with stakeholders such as project teams and leadership to gain valuable insights into the implementation process Additionally, the study incorporated a review of industry best practices and successful case studies from other financial institutions to identify key strategies for a successful ISO20022 implementation.
A SWOT analysis was conducted from August to September 2023 to systematically identify strengths to leverage, weaknesses to improve, opportunities to exploit, and threats to mitigate This comprehensive assessment aims to develop actionable recommendations that ensure a successful implementation By analyzing internal and external factors, the SWOT framework provides valuable insights to guide strategic decision-making and optimize future outcomes.
This chapter offers a comprehensive overview of the study, including the background, research objectives, methodologies, and scope related to the adoption of ISO20022 at BIDV It sets the foundation for understanding the significance of ISO20022 in modern banking and payment systems Following this, the upcoming sections will review relevant literature to provide a structured and insightful understanding of the ISO20022 format and its key features, highlighting its importance for financial institutions like BIDV.
LITERATURE REVIEW
The concept of ISO20022
ISO 20022, also known as MX format, was established in 2004 as a universal financial messaging standard aiming to standardize electronic data interchange between financial institutions globally The migration to ISO 20022 is a phased process that began in March 2023 with the introduction of CBPR+, gradually expanding to cover additional use cases Originating from the 1990s messaging standard ISO 15022, ISO 20022 now provides a structured, richer data format for payments, securities, and trade services, enabling faster processing and better reconciliation This global standard creates a common language for payment data, improving efficiency, reducing costs, and unlocking new commercial opportunities, including higher straight-through processing (STP) rates For instance, Deutsche Bank saw a 15% reduction in payment repair cases post-implementation, while HSBC reported lower rejection rates for cross-border payments thanks to complete and unambiguous transaction data Corporate clients like JPMorgan Chase have benefited from enhanced reconciliation accuracy, with a 25-30% decrease in reconciliation exceptions due to detailed remittance information.
Banks operating in highly regulated environments like the EU and Singapore have enhanced the accuracy of sanctions screening and KYC checks through ISO 20022 implementation, which enables standardized transmission of reference details For example, Standard Chartered Bank utilizes structured party information in MX messages to automate key AML screening processes, resulting in improved efficiency and a reduction in false positive rates.
Electronic funds transfer payment
Electronic funds transfer (EFT) is a secure and efficient method for transferring money between individuals, banks, and companies, offering a faster alternative to traditional paper-based methods like checks and cash (Hintze, 2022, p 18-19) EFT transactions typically involve two parties: the initiator or debtor, who sends the funds, and the beneficiary or creditor, who receives them; the transfer is processed through payment networks ensuring funds move from the debtor’s account to the creditor’s account seamlessly There are various types of EFT payments, including ATM transactions, electronic bank transfer orders, and e-wallets, all contributing to streamlined and safer financial transactions (Dalton et al., 2024, p 2590-2625).
Figure 2 illustrates, in a simplified way, the flow of a typical EFT payment, more specifically, a deposit.
Figure 2 The flow of a typical EFT payment
The payment initiation process begins when a debtor submits a payment initiation message to their bank, containing one or multiple payment instructions to transfer funds to beneficiaries holding accounts across various banks This message includes essential transaction details that enable both the debtor’s and beneficiary’s banks to process the payment securely and efficiently It also incorporates information about any intermediary banks involved in the transfer, ensuring the smooth movement of funds to the beneficiary’s bank account.
9 information from the initiating party, the payment beneficiaries, addresses, currencies, amounts, intermediaries (if any), bank details, value dates, charges, and remittance information, among others (Fung, Molico, & Stuber, 2014).
Technology acceptance model theory
The Technology Acceptance Model (TAM) explains how users accept and adopt new technology by focusing on two key factors: perceived usefulness (PU) and perceived ease of use (PEOU) In the context of ISO20022 adoption at banks, PU reflects stakeholders’ beliefs that the standard will enhance payment processing efficiency and overall business performance, such as faster international payments and improved customer satisfaction PEOU pertains to how easily stakeholders can understand, implement, and use ISO20022, with factors like intuitive message formats and straightforward transition processes influencing ease of use Successful adoption relies on overcoming implementation challenges through training, standardized tools, and lessons learned from early adopters like JP Morgan Chase and Deutsche Bank, which report significant long-term benefits such as faster cross-border payments, better regulatory compliance, and more efficient transaction management To capture the full complexity of ISO20022 adoption, recent research expands TAM to include organizational mediators, offering a comprehensive model tailored to financial institutions.
System upgrades refer to technical developments and enhancements—such as BIDV’s
The implementation of the new Payment Hub platform, SWIFT Transaction Manager integration, and internal software modifications enable ISO 20022 message processing, enhancing system reliability and message clarity These upgrades significantly reduce end-user complexity and foster a more seamless user experience Qualitative interviews reveal that system performance directly impacts users’ perceived ease of use (PEOU) As such, these system enhancements serve as a mediating factor between PEOU and user acceptance behavior, facilitating a smoother transition to new technology and reducing resistance among users.
Human Resources Management at BIDV’s Digital Banking and Payment Centers plays a crucial role in training, capacity-building, and supporting staff through effective communication strategies Staff surveys and interviews reveal that early technical workshops, comprehensive documentation, and on-demand IT support significantly improve the perceived usefulness (PU) of the new ISO 20022 system Moreover, HRM mediates the relationship between PU and users' behavioral intention by ensuring employees are well-equipped and motivated to adopt and utilize the new system effectively, enhancing overall digital transformation success.
ISO20022 compared to other standards and formats
For an EFT payment to be successfully processed, multiple messages must be exchanged between all involved parties These electronic messages are governed by specific rules that dictate the required data and its structure, ensuring seamless communication Compliance with a standardized protocol is essential for the efficient and accurate transfer of funds in electronic systems.
Multiple standards exist for electronic fund transfers (EFT), each with different rules, leading to significant fragmentation in payment processes During a single EFT transaction, especially in cross-border payments involving intermediary banks, various formats and standards are used, complicating data exchange This fragmentation necessitates complex translation, transformation, enrichment, and truncation mechanisms, which can degrade data quality and reduce the overall effectiveness of payment settlements.
According to da Silva (2024), a single payment can be processed through multiple formats, depending on factors such as geography, purpose, and bank acceptance To maximize the benefits of these payment options, organizations must prepare for significant changes by investing in advanced technology infrastructure and optimizing workflows This transition requires careful planning and adaptation to ensure smooth integration and efficiency (Retzer, 2013).
The ISO 20022 migration strategy is phased over three years, starting in November
In 2022, ISO 15022 and ISO 20022 standards will coexist until November 2025, allowing corporations to continue sending payment instructions in legacy formats such as MT103 The transition is driven by the limitations of the ISO 15022 MT standard, which was designed when bandwidth and storage constraints were significant, making it unsuitable for modern regulatory and data requirements ISO 20022 offers enhanced data-carrying capabilities, supporting more comprehensive and compliant payment information This shift to ISO 20022 is essential for improving data richness and regulatory compliance in global financial messaging.
20022 (pacs.008) message and a full ISO 15022 (MT 103) message for payment initiation can be observed in Figure 3
Figure 3 Comparison between ISO15022 and ISO2022 format and an example of
ISO20022 message and ISO15022 message
When converting from ISO 20022 to ISO 15022, some data elements may be truncated or omitted, which can impact message integrity Despite similarities in syntax, successful conversion is not guaranteed due to varying requirements from different initiator and beneficiary banks, which may demand specific data sets or structures Additionally, banks often customize message content based on backend system requirements, including elements they ignore even if the ISO 20022 schema permits them, complicating the interoperability process.
The component of ISO20022 message
The ISO 20022 XML message provides a comprehensive description of all the necessary information required to execute a specific business activity (Quibria, 2015) Its naming conventions follow a standardized format, ensuring consistency and clarity across financial messaging systems.
3 It is based on the concept of separate layers The message format description is contained in an XML structure which is machine readable, so implementation of new messages, or changes to existing messages, requires less manual effort (Debit, 2023)
Figure 4 ISO20022 file naming convention
Figure 5 Some common type of message in ISO20022 specifications
Theoretical Gap in Existing Literature
ISO 20022 is widely recognized as the future global standard for financial messaging, yet academic research on its adoption remains limited in scope and depth Existing literature, primarily produced by industry organizations like SWIFT and consulting firms such as McKinsey & Company, offers practical insights into technical aspects, migration timelines, and implementation checklists but lacks theoretical analysis of human, organizational, and strategic factors Most academic studies focus on developed financial markets, emphasizing technological infrastructure and compliance, with notable examples including De la Rosa (2018), who examined ISO 20022’s role in cross-border payment standardization within the European Union, highlighting regulatory alignment and automation.
Studies on ISO 20022 migration within the SWIFT Eurozone framework, such as those on pages 28-39, highlight significant operational efficiencies gained by banks However, these analyses often assume the presence of advanced IT infrastructure, mature regulatory environments, and strong institutional capacity—conditions that may not be applicable to emerging economies like Vietnam.
There is a notable gap in the literature, as no comprehensive, theory-informed academic studies have evaluated ISO 20022 implementation from both technological and behavioral perspectives, particularly in developing country contexts Vietnamese banks like BIDV are currently navigating this transformation with limited empirical research to inform their decision-making, staff training, and resource planning This underscores the need for in-depth research to support effective ISO 20022 adoption in emerging markets.
Success factors and potential challenges faced by banking institutions when adopting
Banks can significantly benefit from adopting ISO 20022 by improving their message creation processes Wandhűfer (2015) highlights that the defined rules should be consistently applied and expanded beyond just the mandatory fields to include more comprehensive information The richness of payment message data is crucial for banking institutions, as it ensures transparency and efficiency throughout the payment chain Supporting a detailed data set requires cooperation among all parties involved, which is why overpopulating messages with additional relevant information is advantageous for seamless processing and communication.
A key challenge for ISO 20022 adoption is the ongoing evolution of the standard According to Schmidt (2020, pp 126-136), rulebook updates, known as SWIFT Standard Releases, are regularly implemented through release cycles These updates introduce numerous improvements and enhancements, requiring continuous adaptation by financial institutions to stay compliant and leverage the latest features of the standard.
Upgrading infrastructure and systems to be ISO20022-compliant requires significant investment in hardware, software, and staff training
Example: Deutsche Bank reportedly allocated millions to overhaul its payment processing systems to accommodate
1 Enhanced Data Quality and Richness
ISO20022 messages allow for detailed payment data, improving transparency and enabling better fraud detection
Example: BNP Paribas leverages enriched data to provide customized analytics for corporate clients
Legacy systems in banks often struggle to integrate with the data- rich structure of ISO20022 messages
Example: HSBC had to align its outdated systems with the rich and standardized XML-based
Real-time updates and better tracking of transactions offer enhanced customer service
Example: Santander used ISO20022 to optimize its mobile app experience, offering detailed payment tracking features
Limited availability of IT experts and payment professionals familiar with ISO20022 increases the learning curve and dependency on external consultants
Example: Mid-tier banks in Asia reported a shortage of expertise, delaying their adoption timelines
Implementing ISO20022 ensures alignment with global initiatives like SWIFT's CBPR+ and instant payment systems
Example: The Reserve Bank of India mandated ISO20022 for its Real-Time Gross Settlement (RTGS) system, improving compliance and interoperability
Despite being a global standard, the adoption of ISO20022 varies across regions, complicating cross- border payment harmonization
Example: The US’s phased approach to ISO20022 adoption for
Fedwire and CHIPS systems caused delays in achieving a unified standard
ISO20022 serves as a foundation for new services like Request-to-Pay (RTP) and advanced analytics, driving innovation
Example: ING Bank developed value- added services such as invoice matching using ISO20022-based payment data
Figure 6 Potential opportunities and challenges for the adoption of ISO20022
Source: Collected from European bank newsletters
Many banks have been slow to adopt ISO 20022 due to legacy system constraints, high transition costs, and the complexity of aligning internal processes with new messaging standards (Schmidt, 2020) BIDV, which has utilized a core banking system deployed since the 2000s, faced significant obstacles during ISO 20022 implementation but decided to upgrade its core banking system to handle structured data more effectively, reducing payment processing errors and ensuring compatibility with ISO 20022 This parallel upgrade represents a strategic move to process detailed transaction messages with minimal data loss, serving as a valuable case study for other financial institutions To facilitate a smooth transition, BIDV adopted phased implementation, inspired by SWIFT’s approach, and leveraged insights from industry leaders like JP Morgan, which exemplifies modernization through advanced technology, automation, and strong data analytics to enhance payment transparency and interoperability While JP Morgan’s success is built on substantial investment, early adoption, and close collaboration with regulators, BIDV must tailor its strategy to overcome challenges such as legacy systems, regulatory differences, and resource limitations by focusing on phased implementation, staff training, and scalable infrastructure upgrades (Swift, 2021).
This chapter examines essential theories and concepts surrounding the adoption of ISO 20022 in international remittance services, highlighting the significance of the Technology Acceptance Model (TAM) in understanding how perceived usefulness and ease of use influence the adoption of new financial messaging standards The analysis underscores the importance of these factors in facilitating seamless implementation of ISO 20022 The upcoming chapter will provide detailed insights into the research methodology and findings related to this technological transition. -**Sponsor**As a content creator, I understand the importance of SEO and coherent paragraphs Need help rewriting your article? With [Article Generation](https://pollinations.ai/redirect-nexad/IWlHBCSR), you can effortlessly create high-quality, SEO-optimized articles in minutes, saving time and money Perfect for startups and businesses looking to boost their online presence without breaking the bank! Let's transform that text into engaging content that ranks!
17 methodology that the author used to achieve the research objectives.
RESEARCH METHODOLOGY
Introduction
This chapter outlines the research methodology employed to gather relevant data for the study, including a detailed description of the research design, methods, data collection techniques, and analysis processes.
Research design
This study employed a mixed-methods approach, utilizing qualitative analysis of BIDV staff from departments including the Payment Center, IT department, and Digital Banking Center to gain in-depth insights Additionally, a quantitative technique was implemented to collect and analyze staff feedback regarding the impact of ISO 20022 implementation on BIDV’s payment system The research process integrated these methods to comprehensively assess the effects of ISO 20022 on BIDV’s payment operations, ensuring a thorough understanding of both operational changes and staff perceptions.
Methods of the research
This study employs both primary and secondary data collection methods to ensure comprehensive analysis The primary data was gathered through an online survey targeting top and middle management, specifically departmental heads involved in the adoption and implementation of new projects Special focus was given to respondents from the Payment Center and Digital Banking Center to gather relevant insights Online surveys were selected for their cost-effectiveness and efficiency in collecting quantitative data, with Google Forms used as the primary tool for designing and distributing the surveys to multiple participants at no expense.
Collecting data (from online survey and interview)
Analyzing and interpreting collected data
Finding conclusion based on analysis
All staff and top management, including the Directors of the Payment Center and Digital Banking Center, were approached despite their busy schedules, highlighting the challenge of interpersonal communication for research purposes An online survey provided a quick and practical method to gather data, allowing responses to be collected with just a few clicks and ensuring immediate results (Debois, 2019; Rea & Parker, 2014) This method also maintained respondent anonymity and privacy, encouraging honest and accurate feedback Additionally, interview questions were used to gather deeper insights from specific positions within BIDV that the survey could not cover The survey targeted the entire population of 50 officers across BIDV, including 30 officers from the Payment Center’s International Remittance Department responsible for fund disbursement and communication with financial institutions, enabling comprehensive feedback on daily operational challenges faced by payment tellers.
The primary data collection method was a well-structured survey designed to gather consistent information from a large respondent pool, enabling quantitative analysis (Farnsworth, 2016) The researcher directly distributed the survey to the selected sample, ensuring uniformity in data collection Participants, including team members, the deputy head, and the project head of the ISO20022 implementation initiative, completed the survey to provide their perspectives on the contribution of each field during the project.
When developing research questions, it is crucial to ensure they use language easily understood by respondents and to clarify any technical or academic terminology beforehand (Haataja & Stackenọs, 2021; Rowley, 2014) The formulation of research questions should be influenced by relevant theory, and researchers can adapt survey questions from existing studies, provided they properly acknowledge their sources and tailor the questions to fit their specific research context (Rowley, 2014) In this study, the researcher utilized survey questions from the reports "Adoption of ISO20022 for Payments" and other related research to ensure consistency and relevance.
This research explores the future of correspondent banking and cross-border payments by designing a tailored survey that captures stakeholders' perspectives The survey questions were adapted to align with the research focus on the adoption and improvement of ISO20022 in cross-border financial transactions A total of 50 survey responses were collected, with all responses deemed valid after data cleaning to remove incomplete or inconsistent data The collected data were then analyzed to provide insights into industry views on current practices and potential enhancements for the future of international payment systems.
This survey was developed using constructs from the Technology Acceptance Model (TAM), supplemented by items from ISO 20022 adoption studies and international case reports to ensure comprehensive coverage The questionnaire was organized into four sections: respondent profile, perceived usefulness, implementation challenges, and anticipated benefits, using a 5-point Likert scale to measure agreement levels To validate content accuracy, it was reviewed by an academic supervisor and an ISO 20022 project manager at BIDV, leading to updates in terminology, question clarity, and item grouping A pilot test with five BIDV staff members helped refine the survey by rewording four questions for clarity and removing two redundant items, resulting in a streamlined and effective questionnaire.
The survey assessed the awareness, readiness, and challenges faced by the Treasury Group and IT Group at BIDV Payment Center in adopting ISO20022 standards It focused on understanding of ISO20022, implementation challenges and concerns, and the expected benefits and business impact of adopting this international messaging standard.
The readiness of IT systems and infrastructure for ISO 20022 adoption is assessed through a comprehensive survey that addresses key responsibilities of both departments While the treasury group primarily focuses on business implications, operational efficiency, and regulatory compliance, the IT group concentrates on technical implementation, system compatibility, and cybersecurity concerns The survey is structured into sections, including General Awareness & Knowledge, to ensure a thorough evaluation of both departments’ preparedness for the transition.
Have you heard about ISO20022? (Yes/No)
How familiar are you with the key features of ISO20022? (Scale: 1–5, 1 – Not familiar, 2 – Slightly, 3 – Moderately, 4 – Very familiar, 5 – Expert) b) Implementation Readiness
Does your department currently use any messaging standard that will be replaced by ISO20022? (SWIFT MT, local formats, etc.)
What challenges do you foresee in transitioning to ISO20022? (short answers)
Do you believe your department is prepared for ISO20022 migration? (short answers) c) Expected Benefits & Business Impact
What benefits do you expect from ISO20022 adoption? (short answers)
How do you think ISO20022 will affect your daily operations? (scale, short answers) d) IT Infrastructure & Integration Challenges
What IT changes are required to support ISO20022? (short answers)
Do you anticipate difficulties in integrating ISO20022 with existing core banking/payment systems? (scale + short answers)
An interview involves direct, face-to-face interaction between the interviewee and the interviewer, providing valuable insights for the study In this research, interviews were conducted with respondents identified as crucial to the organization's internal control system, ensuring relevant and targeted data collection The interview questions comprised both open-ended and closed formats, allowing respondents to share detailed information and specific responses, respectively (Taherdoost, 2016) Open-ended questions encouraged respondents to elaborate and provide additional perspectives, enriching the quality of data This qualitative approach facilitated the collection of diverse views, making interviews an effective method for gaining in-depth understanding of the research theme (P Gill, 2008).
Qualitative interviews offer a deeper understanding of social phenomena compared to purely quantitative methods like questionnaires, allowing interviewers to clarify complex or unclear questions and promote candid responses, especially on sensitive topics (Speer et al., 2020) In this study, interviews complemented survey data by capturing additional relevant information not covered in the questionnaire To ensure reliability, the interview guide was reviewed by internal managers at BIDV and an academic advisor, and a test interview was conducted to refine flow and clarity All interviews were audio-recorded, and results were cross-validated with survey responses and internal documentation to strengthen credibility and ensure robust triangulation.
Some examples of interview questions that the author used are below:
1 Analyze the Current State of
- What steps has BIDV Payment Center taken so far in the adoption of ISO20022 for remittance services?
- What is the current progress of ISO20022 implementation?
- What milestones have been achieved in the implementation process?
- Are there any areas where the implementation is lagging? If so, why?
- How do you evaluate the current readiness of BIDV for full ISO20022 adoption?
- What technical challenges have you encountered during the adoption of ISO20022?
- How has the transition to ISO20022 impacted financial and operational processes at BIDV?
- What regulatory or compliance challenges have you faced during the implementation?
- Are there any internal organizational challenges that are slowing down the adoption process?
- How has staff training and adaptation to the new system been managed?
- What do you see as the biggest opportunities for BIDV in adopting ISO20022?
- How do you think ISO20022 will improve international remittance services?
- What competitive advantages do you expect ISO20022 to provide in the market?
- How do you believe this system will enhance customer service and satisfaction?
- Do you see any long-term strategic benefits of adopting ISO20022 for BIDV?
- What strategies have been implemented to address the challenges of adopting ISO20022?
- What additional measures can be taken to ensure a smooth transition to ISO20022?
- How can BIDV better prepare its staff for the full adoption of ISO20022?
- What external resources or partnerships could be leveraged to improve implementation success?
- How do you envision overcoming the regulatory or compliance challenges faced during the process?
Figure 8 Interview questions for project leaders and key staff of BIDV ISO20022 implementation team
The survey targeted all 50 members of BIDV’s ISO20022 team, including staff from the Payment Center and Digital Banking Center involved in the implementation process It focused on two key groups: International Remittance officers (Group 1, 30 members), responsible for fund disbursement, communication with financial institutions, and bank statement reconciliation, with a stable composition over the years that offers deep insights into successful business flow execution; and Digital Banking Center officers (Group 2, 20 members), comprising IT developers and support staff tasked with implementing and maintaining technical solutions for the remittance functions To ensure comprehensive and accurate data collection, a census approach was adopted, requiring all team members to participate, with filtering based on email validation and response time to maintain data quality and avoid partial representation.
Building on this strong methodological foundation, the next chapter will analyze the collected data to reveal key findings and discuss BIDV staff's feedback prior to the implementation of ISO20022 at BIDV.
ANALYSIS AND INTERPRETATION OF FINDINGS
Before the implementation of ISO20022 at BIDV
This survey focuses on 30 Payment Center staff members who handle daily BIDV payments via the SWIFT network using the MT message format Their primary responsibilities include creating, verifying, and managing inbound and outbound payment messages, giving them an objective perspective on the impact of transitioning to the ISO20022 message format Their insights shed light on how the new messaging standard affects payment processing efficiency and accuracy at BIDV.
It is noticeable that the increase in the volume of payment rejections and inquiries from banks, resulting in additional manual work, fees, and delays It originates from the tighter KYC requirements by regulators and local authorities, and the limited possibilities of the payment formats used in terms of richness and structure of data Below is the response from 30 respondents from the Payment Center.
Figure 9 Number of payment rejections and inquiries received per day for BIDV
From Figure 9, it is noticed that respondents who have to handle fewer than five payment rejections or inquiries only account for 27% Besides, more than half of the
Less than 5 rejections and inquiries
From 5 to 10 rejections and inquiries
A significant workload burden is placed on Payment Center tellers, with 25 staff members handling between 5 to 10 cases daily, while 20% of staff manage over 10 cases, highlighting extensive manual processing requirements The high rejection and inquiry rates primarily stem from limitations in the data structure and lack of standardization in the MT message format, which relies on free-text and loosely structured data, leading to inconsistencies and data truncation due to character limits Consequently, ISO 15022 messages often necessitate manual clarification efforts, increasing operational time spent on handling inquiries and rejections, particularly for payments requiring detailed beneficiary information Each rejected or held transaction involves manual effort, elevating internal rework costs Conservative estimates indicate that 30 officers addressing around 7 problematic payments per day, at approximately 17 minutes per case, spend roughly 3,570 minutes or 59.5 hours daily on error resolution, emphasizing the substantial impact of process inefficiencies on operational capacity.
4.1.2 Difficulty in managing payment message formats
The previous form's character limit hampers efficient data entry, with only 35 characters per line and four lines for debtor and creditor details This restrictions pose significant challenges for remittance staff to accurately capture customer information As a result, staff often struggle to ensure all required data is fully submitted, leading to potential errors and delays in processing These limitations highlight the need for a more flexible form design to improve data accuracy and operational efficiency.
Figure 10 Response from BIDV staff on whether MT standard has fully delivered the information provided
Nearly half of the respondents are dissatisfied with the current MT format due to frequent truncation issues that require manual processing, leading BIDV to incur additional costs for sending amended information About 10% of staff remain undecided on whether the MT standard suffices for their daily tasks, while 42% prefer ISO15022 for its simplicity, as they have used it for a long time This indicates that staff who enjoy transforming payment messaging formats have a strong interest in exploring new message types The manual data entry and unstructured nature of ISO 15022 messages often cause errors, such as incorrect account numbers, SWIFT codes, or bank names, resulting in failed transactions Tellers manually fill numerous unstructured data fields, which can lead to unclear or missing information and prompting receiving banks to seek clarification Additionally, inconsistent interpretation and formatting of MT fields across different banks can cause data mismatches, confusing bank tellers during payment processing.
There are no controls to proactively detect potential issues during the payment execution process It is clear that with unstructured data presented in MT message
Strongly Agree Agree Undecided Disagree Strongly Disagree
27 format, mistakes frequently occur while processing the message since the data is filled in an unstructured format, which could lead to a non-processed message while sending via SWIFT
Figure 11 Responses on whether any existence of controls during the execution of payment message
A survey revealed that only 14% of staff strongly agreed they can identify potential issues during payment message processing, while 30% disagreed and 27% strongly disagreed, highlighting challenges in control The remaining 30% were unsure, indicating a significant lack of confidence in detecting issues This suggests that unstructured data within the MT format hampers effective payment message control, as ISO 15022 messages depend heavily on free-text fields, making content management difficult.
An inefficient bank reconciliation process often arises from inconsistent cross-references between payment instructions and electronic bank statement formats When batch-booking is employed, each statement line corresponds to an entire payment batch rather than individual payments, leading to multiple detail entries being reconciled against a single bank statement line as appropriate This lack of precise cross-referencing hampers accuracy and speeds up the reconciliation process, highlighting the need for standardized formats and improved cross-referencing mechanisms to enhance efficiency.
Strongly Agree Agree Undecided Disagree Strongly Disagree
Figure 12 Responses on whether bank reconciliation is processed efficiently
According to survey data, only 17% of respondents strongly agree, and another 17% agree that the reconciliation process is efficient, while 37% disagree, and 30% remain uncertain, indicating potential concerns about the process's effectiveness This suggests that staff may recognize issues with incomplete or inaccurate detail entries during reconciliation The reliance on ISO 15022 messages, which depend on free-text fields, complicates the consistent extraction and matching of payment details Consequently, BIDV Payment Center tellers must manually interpret payment information, leading to errors and uncertainties due to varying formatting styles These challenges contribute to widespread dissatisfaction among staff regarding the current bank reconciliation process.
Strongly Agree Agree Undecided Disagree
Figure 13 Reconciliation process of BIDV
Based on users' familiarity with the previous format, the article explores BIDV's strategic plan for adopting and implementing ISO20022 The author emphasizes the importance of a comprehensive adoption plan to address current limitations and enhance payment system efficiency Implementing ISO20022 will enable BIDV to improve transaction data quality, ensure greater interoperability, and future-proof its banking infrastructure The article highlights that a well-structured transition to ISO20022 is essential for mitigating existing drawbacks and aligning with global banking standards.
• BIDV gathers two primary sets of financial data:
• Internal transaction records: Payments, receipts, fees, and adjustments recorded in BIDV’s core banking system
• External bank statements: Daily or periodic statements received from correspondent banks, SWIFT network, or local clearing systems (e.g., IBPS, VCB, Citad, or NAPAS)
• Data is extracted in MT940, MT950 formats for automated reconciliation
Automated reconciliation tools efficiently compare transactions in BIDV's system with bank statements by analyzing key fields such as transaction reference numbers, amounts in local and foreign currencies, value dates, posting dates, and payer and beneficiary details However, the process is limited by the absence of unique identifiers, hindering real-time tracking and validation of cross-border payments.
BIDV classifies unmatched transactions as reconciliation discrepancies, which can result from timing differences such as deposits in transit or uncleared checks, bank charges or fees not recorded in their system, incorrect postings like misapplied payments, failed transactions due to compliance or sanctions screening, as well as duplicate transactions or missing entries, ensuring accurate account reconciliation and financial reporting.
The Treasury & Payment Operations Team conducts manual reviews of unmatched transactions to ensure accuracy and resolution Key resolution methods include requesting additional details from correspondent banks for international transactions, performing internal corrections when BIDV’s system has misrecorded transactions, and engaging with customers to address failed or delayed payments These processes help maintain smooth financial operations and enhance customer satisfaction.
• Once issues are resolved, BIDV updates the records by:
• Posting missing transactions to the general ledger, adjusting balances to reflect accurate financial positions and reporting unresolved discrepancies to compliance and risk management
The adoption and implementation plan of BIDV
4.2.1 SWIFT implementation roadmap of ISO20022 suggestion
According to SWIFT's plan, the implementation roadmap of ISO 20022 is divided into two phases:
Phase 1: From November 2022 to November 2025: SWIFT members can use both standards simultaneously: the MX format under ISO 20022 (a large banking group with technical potential and implementing early conversions) and the MT format under ISO 15022 - the current standard (for other banking groups).
Phase 2: After November 2025, all members must agree to use ISO 20022 message format (applicable to 1xx, 2xx, 9xx message format).
4.2.2 ISO20022 implementation plan of other financial institutions
Major Vietnamese commercial banks, including Vietcombank and Vietinbank, are actively working on implementing ISO 20022 standards in response to SWIFT and the State Bank of Vietnam’s requirements Vietcombank has invested in a Payment Hub solution that supports ISO 20022 and has been operational since February 2021, enhancing its payment infrastructure Meanwhile, Vietinbank’s Technical Department is researching message format conversions between SWIFT’s MX and MT standards to develop an effective implementation plan Additionally, Vietinbank is engaging with contractors to discuss changes related to the MX electronic information standard within the Core Profile, ensuring alignment with industry standards and future integration.
Since early 2021, BIDV has been researching the implementation of ISO20022 to enhance its payment messaging systems The bank has engaged with SWIFT and its representatives in Vietnam to identify the most suitable solutions for a smooth transition to this new standard, in conjunction with its core banking system upgrade BIDV aims to complete the ISO20022 adoption by Q3 2023, and has partnered with SWIFT and outsourced experts to develop and execute a comprehensive implementation roadmap.
Figure 14 BIDV implementation roadmap of ISO20022 and Gantt chart of
The ISO 20022 implementation plan at BIDV was developed based on insights from survey and interview data, ensuring it addresses key challenges and priorities Notably, 72% of remittance officers reported frequent payment rejections or inquiries, typically five to ten per day, mainly caused by message truncation, unstructured MT fields, and incomplete beneficiary information Additionally, 64% of respondents highlighted the need for improved message standards to reduce errors and enhance transaction efficiency.
Use Payment Hub system for BIDV's payment system with functions/components that fully satisfy the initiation, receipt and processing of messages according to ISO20022 message format
From Nov 2022 to Sep 2023 From Sep 2023 to
- Use SWIFT ISO20022 message conversion solution to convert inward MX messages to BIDV into MT messages
- Edit international remittance related application (Swift Editor,
Gateway Monitor, Siron EMB) and related applications that exploit data directly from the
Statement, ) to receive MT messages from the conversion tool
- Stop using SWIFT message conversion solution
Utilize the built-in message conversion tool within the new Payment Hub system to seamlessly convert MX messages sent to BIDV into MT messages for efficient processing within internal programs, and vice versa, ensuring smooth communication and transaction handling.
The reconciliation process faced 32 inefficiencies due to inconsistent reference formats and a significant lack of confidence among staff in the bank's technical readiness and internal training resources These issues directly shaped BIDV’s migration strategy, leading to the adoption of a bridged translation model to minimize operational risks and facilitate gradual system integration of MT and MX formats To address staff gaps in ISO 20022 awareness and system familiarity, intensive training and capacity-building initiatives were launched in late 2022 and continued through 2023 Early deployment of the Payment Hub platform and integration of SWIFT’s Transaction Manager improved message validation and traceability, ensuring message integrity and compliance Internal concerns over message mismatches prompted phased external testing with partners and staged full-scale implementation starting in Q2 2023 Overall, BIDV’s implementation plan serves as a comprehensive organizational response to operational challenges, staff readiness issues, and real-world constraints identified during the process.
The bank is transforming its entire technology infrastructure and payment system into a unified platform that complies with ISO 20022 standards, ensuring all technical components communicate using a common language (Bouille & Haase, 2019, p 104-112) This approach enables the bank to seamlessly create, receive, and send MX format messages within the system, eliminating the need for conversion tools.
MX format message receiving/sending and processing flow:
MX message (from sending/receiving bank) MX message (receiving bank applying a comprehensive conversion model) (BIDV, 2023a)
Implementing an end-to-end replacement of MT formats without coexistence involves significant technical risks, including system errors, integration failures, and testing gaps that could disrupt operations There is a heightened risk of message rejection, especially if correspondent banks or legacy systems are not prepared for ISO 20022 adoption Additionally, this solution entails substantial upfront costs, requiring comprehensive system upgrades, the development of new message parsers, re-engineering compliance modules, and staff retraining to ensure a smooth transition.
Project management and consulting costs amount to approximately $33 million, highlighting significant investment requirements The operational impact of the migration could lead to high disruptions during the cutover phase, alongside increased internal training demands and resource allocation challenges Due to BIDV’s ongoing core banking upgrades and limited XML-processing infrastructure, a full migration posed excessive risks of service disruption and implementation failure, necessitating careful risk management and phased approaches.
This is the simplest conversion model (converting payment messages from the old
MT format into the new MX format according to ISO 20022), whereby the conversion process takes place mainly in outsourced components, while the payment system has only changed insignificantly
MX electricity receiving/sending and processing flow:
MX electricity (bank sends/receives electricity) MT electricity (centralized conversion at SWIFT) MT electricity (bank applies a simple conversion model) (BIDV, 2023a)
A simple translation approach offers a cost-effective, quick-fix solution by converting MX messages into MT formats without requiring significant internal upgrades However, this method poses substantial business risks, including the loss of structured data, limited compatibility with future systems, and diminished long-term value, highlighting the importance of more advanced, integrated solutions for sustainable growth.
The bridged translation model enhances the basic conversion approach by enabling banks to store and search the original data of MX messages, making it a superior solution This model is ideal for banks that prioritize data integrity, aim for a swift transition, and handle complex compliance requirements such as anti-money laundering and terrorist financing controls It is particularly suitable for institutions with medium to high operational scale and substantial technological infrastructure, ensuring efficient and secure processing throughout the migration process.
MX messages receiving/sending and processing flow:
MX messages (bank sends/receives messages) MT messages and MX messages (bank applies bridging conversion model, the conversion process is performed within the system of this bank) (BIDV, 2023a)
This solution proves the ability to preserve data integrity before conversion,
Implementing a robust system helps banks minimize the risk of data loss or tampering, ensuring message integrity and security against malicious threats It enables secure storage, accurate data origin tracking, and limits unauthorized message interference, enhancing overall data security Additionally, this approach offers a cost-effective solution—significantly more affordable than comprehensive conversion models—while ensuring a higher straight-through processing ratio compared to simple conversion models However, this solution comes with minor drawbacks, such as increased system complexity to support the identification and processing of both MT and MX messages, and higher costs relative to simpler models.
BIDV's ISO20022 team evaluated and compared SWIFT and contractor message conversion solutions, ultimately recommending the bridging translation model combined with SWIFT's Transaction Manager The decision was approved by the board of directors, recognizing that this approach best suits BIDV's large-scale operations and strategic goals Choosing the bridging translation method enables a smooth transition without extended delays, aligning with the target to send and receive key MX messages by September 2023 This solution leverages the advantages of the bridging approach, making it ideal for BIDV's payment system upgrade.
Table 1 Comparison table for three approaches for SWIFT transition of
Feature Full Migration Simple Translation Bridged Translation
20022 without reliance on MT messages
Converts MT messages to ISO 20022 format without structural enhancements
Uses an intermediary system to handle both
High – Requires complete infrastructure overhaul
Low – Quick implementation with minimal system changes
Medium – Requires additional middleware or translation layer
Approximate 224,000 USD, not including advisory fee – 1.5 years of implementation
Approximate 60,000 USD, not including advisory fee – 3 months of implementation
Approximate 150,000 USD, not including advisory fee – 6 to 8 months of implementation
The BIDV team evaluated three approaches for transitioning to SWIFT ISO 20022, considering their suitability for the bank's needs The final cost and timeframe depend on SWIFT, based on BIDV’s data regarding business scale, infrastructure, and current operational requirements Initial transition costs are fixed but do not include additional fees such as advisory, maintenance, or message fees that BIDV pays to SWIFT on a monthly basis.
4.2.4.1 Preparation work for the application phase of the bridging translation
Before implementing bridging translation, BIDV conducted extensive research to meet SWIFT requirements, analyzing technical aspects such as configuration and routing in Q4 2021 The technical team evaluated the pros and cons of message conversion solutions, including SWIFT Translator and Transaction Manager The implementation team thoroughly studied each solution’s message conversion rules and assessed potential issues like payment message truncation during the conversion process, ensuring a comprehensive plan for successful message processing.
High – Full utilization of ISO 20022’s structured data fields
Low – Limited to MT fields, losing some ISO
20022 data may be available but constrained by legacy formats
High – Aligns fully with SWIFT’s ISO 20022 migration roadmap
Low – Temporary solution that does not meet long-term compliance goals
Medium – Supports coexistence but requires future migration
High – Improves automation, reconciliation, and analytics
Medium – Some efficiency gains but still tied to MT constraints
Low – No data truncation, ensuring full message integrity
High – Data truncation and loss of enriched information
Medium – Some loss due to mapping limitations
High – Fully aligned with future financial messaging standards
Low – Temporary fix requiring future full migration
Medium – Provides flexibility but eventually needs an upgrade
Institutions with strong digital infrastructure and long-term vision
Banks looking for a quick, low-cost interim solution
Organizations needing a phased transition with minimal disruptions
After the implementation of ISO20022 at BIDV
4.3.1 The results after the implementation of ISO20022 at BIDV
Thanks to the guidance from BIDV's board of directors and the dedication of its staff, coupled with strong support from SWIFT, BIDV's Payment Hub system successfully adopted ISO 20022 on September 3rd, 2023.
This is a historical milestone for BIDV, the first local bank in Vietnam to successfully adopt the ISO20022 standard and is able to send, receive, and process
MX messages for cross-border payments for three roles: Instructing Agent, Instructed Agent, and Intermediary Agent.
The initial success achieved since BIDV adopted ISO 20022 is as follows:
Total MX messages sent and received reached over 60,000 from 3 rd September
2023 to 31 December 2023 (including 46,938 outwards and 13,548 inwards, with a total transaction value of over $6 billion)
Figure 16 Number of transactions and transaction value for MX messages in
The majority of traffic originates from the US and EU markets, accounting for over 90% of all inbound and outbound messages In line with SWIFT's plan, the bank officially adopted the ISO 20022 messaging standard in March 2023, enhancing cross-border communication efficiency.
Number of MX messages completed
Total transaction value (in USD millions)
Number of transactions in some markets (outward messages)
Number of transactions in some markets (inward messages)
Figure 17 BIDV payment messages after implementation of ISO20022
Figure 18: Comparison of BIDV successful payment messages in 4h Quarter of
During Quarter 4 of 2023, BIDV has successfully conducted 42103 outward messages, which is 10.5 percent higher than the same period in 2022 A more
Transactions value (USD millions) in some markets
Transactions value (USD millions) in some markets (inward messages)
N u m b er o f succe ss fu l p ay m en t m es sages
In 2023, inward messages at BIDV reached an impressive total of 43 million, reflecting a 14.5% increase, highlighting the growth and improved transaction success rates facilitated by the implementation of ISO20022 This international messaging standard enhances BIDV’s interoperability with global payment systems through standardized data formats, enabling seamless communication across financial institutions and cross-border networks—especially crucial for international remittances, where diverse messaging standards often cause inefficiencies ISO20022 allows BIDV to offer personalized solutions and value-added services, such as faster transactions, detailed tracking, and increased transparency, thereby strengthening customer trust and loyalty Additionally, ISO20022 assists BIDV in complying with international regulatory standards like AML and KYC by providing precise transaction data for accurate reporting and auditing, reducing compliance risks Customer feedback, including comments like “The detailed transaction data provided by BIDV now makes it easier for me to track my funds,” and “Now I can send or receive more detailed payment messages, which helps me and my bank understand remittance purposes more clearly,” underscores the positive impact of these improvements on international remittance services.
These impressive numbers are the proof and also the motivation for BIDV and other banks in Vietnam to be more determined in developing their ISO20022 adoption plans
4.3.2 Evaluate the impact and adoption of ISO20022 implementation to BIDV staff
Surveys are an effective method for collecting relevant data to evaluate artifacts within the Design Science Research Methodology (DSRM) framework (Venable et al., 2012) Although surveys usually target a sample population, this study successfully surveyed the entire population, ensuring comprehensive data collection and more accurate insights.
This survey targeted two focus groups:
International Remittance Officers (Group 1 — 30 members) are responsible for managing the entire fund disbursement process across the organization They handle all communications with financial institutions, including addressing rejections, fees, and inquiries, to ensure seamless transactions Additionally, they oversee bank statement reconciliation to maintain accurate financial records Their role is crucial for ensuring timely and efficient international fund transfers while maintaining compliance with banking procedures.
The composition of 44 has remained consistently stable over the years, highlighting a deep understanding within this focus group of the importance of executing this business flow effectively They recognize that successful implementation can significantly vary across different solutions, emphasizing the need for careful evaluation to achieve optimal results.
The Digital Banking Center officers, comprising 20 IT Developers and Support Officers, are responsible for implementing and supporting technical solutions within the remittance functional domain, including payment execution processes The International Remittance officers have maintained a consistent team composition, allowing for effective comparison of implemented solutions over time The team features a diverse mix of profiles, with 25 individuals serving as purely technical resources to support seamless digital banking and international remittance operations.
Surveys were distributed to the population beginning in the 8th week after the official go-live date, allowing sufficient time for system stabilization and for stakeholders to assess the success of the implementation.
The surveys for each focus group were similarly structured, comprising six questions rated on a 5-point scale and additional open-ended questions to gather qualitative insights The primary objective was to evaluate the overall success of the adoption across various aspects, providing a comprehensive understanding of its effectiveness (Hintze, 2022, p 18).
The article examines not just the overall success of the solution but also emphasizes user perceptions regarding sustainability, complexity, and the effort needed for maintenance It highlights concerns about the system’s stability and identifies potential areas for improvement to enhance long-term effectiveness These insights are crucial for understanding the solution’s viability and guiding future enhancements.
The survey results, available in Appendix VIII, demonstrate high overall satisfaction with the ISO 20022 solution compared to legacy formats Out of 50 key staff members—comprising 20 IT Developers and Supporters and 30 Remittance team members—nearly all respondents expressed clear satisfaction across multiple criteria, with only one exception The analysis of the first six questions (Q1.1 to Q1.6), rated on a scale from 1 to 5, confirms positive feedback, highlighting the effectiveness and user approval of the new system.
Table 3: Response from 50 BIDV staff
Note: 1 (much worse - purple), 2 (worse – blue), 3 (neutral - grey), 4 (better – yellow) to 5 (much better - green)
Over 75% of employees report higher satisfaction with ISO 20022 compared to the old format, highlighting its perceived ease of use This aligns with the Technology Acceptance Model (TAM), which emphasizes that perceived ease of use (PEOU) supports adoption by reducing resistance to change Employees view ISO 20022 as more efficient and user-friendly, leading to increased integration into daily workflows High PEOU also enhances perceived usefulness (PU), boosting overall satisfaction and promoting long-term adoption To maximize efficiency and user engagement, BIDV can leverage these insights to optimize ISO 20022 implementation.
The short answer response was enthusiastic, highlighting significant improvements IT Development Support staff, including Support 32, praised the ISO 20022 pacs.008.001.08 format as being much easier to modify, describing it as a "huge improvement." They noted that despite the numerous differences and exceptions in the ISO 20022 format, these are manageable Additionally, positive feedback was received from Remittance staff, such as Remittance 29 from the Treasury department, emphasizing the overall positive reception of the update.
The remittance services department reports significant improvements in their processes, with one agent noting that "the solution is much better compared to the previous system." They also highlight that "the process is now much smoother, resulting in approximately 40 to 50% fewer rejections." Additionally, the reduction in inquiries has led to a decrease in associated time and effort, now accounting for less than 10% of what it used to be, streamlining overall operations and increasing efficiency.
Most IT developers and Support staff also replied positively concerning the choice of technology, accounting for 4 out of 5 positive evaluations IT Dev/Supp 5 added,
The transformation process has been simplified, allowing for immediate testing, and the solution is perceived as sustainable and scalable, with IT Dev/Supp 20 affirming, “It is definitely sustainable, so we have significantly fewer incidents now.” However, some feedback highlights challenges; for instance, a comment emphasized that “the introduction to new bank accounts must be simplified,” while IT Dev/Supp 11 expressed dissatisfaction, stating that “the new solution is more complex to manage” and criticizing the use of XML as an unsuitable technology choice, noting that “there is no need to have an intermediate step between data extraction and transformation.”