Are you ready for ISO 20022? Why address accuracy matters more than ever
The financial world is undergoing a major transformation with the adoption of ISO 20022, the new global standard for financial messaging. This shift will enhance data consistency, accuracy, and efficiency in international transactions - but it also introduces new challenges, particularly in address formatting.
At Loqate, we understand that high-quality, structured address data is critical for ISO 20022 compliance. Without it, financial institutions risk payment failures, compliance issues, and increased manual intervention.
What’s changing?
ISO 20022 introduces a structured, XML-based format that replaces legacy free-text address fields. By November 2025, financial institutions must begin transitioning to a structured or hybrid address format, and by November 2026, unstructured addresses will no longer be supported.
The challenges of ISO 20022 compliance
Many financial institutions store addresses in unstructured formats, making it difficult to accurately extract, validate, and map address components. Key challenges include:
Parsing unstructured address data – Extracting street names, building numbers, and postal codes from free-text fields.
Handling multilingual addresses – Standardising global address formats across different languages and structures.
Ensuring data accuracy – Avoiding misspellings, missing fields, and inconsistencies that could lead to transaction failures.
How to prepare for ISO 20022
- Assess your data quality – Identify gaps and inconsistencies in your current address database.
- Implement data verification solutions – Use Loqate’s address parsing and validation technology to clean, structure, and enrich your data.
- Train your team – Ensure your teams understand the importance of structured data and compliance requirements.
- Monitor and maintain data quality – ISO 20022 compliance isn’t a one-time task. Ongoing validation is key to maintaining compliance. Download our guide on ISO 20022 here.
How Loqate can help
With the world’s most comprehensive address database, Loqate ensures that financial institutions can:
- Map unstructured data into structured, ISO 20022-compliant formats
- Validate and enrich addresses in real time to reduce errors and failed payments
- Seamlessly integrate address verification into existing financial systems
Future-proof your compliance strategy
While hybrid address formats will be permitted beyond 2026, a fully structured approach is the best way to future-proof financial messaging systems. Financial institutions that act early will reduce compliance risks, improve straight-through processing rates, and enhance customer experience.
ISO 20022 is more than a compliance shift - it’s an opportunity to optimise financial data for a more efficient future.
Stay ahead of regulatory demands with Loqate’s industry-leading address validation solutions. Contact us today to start your ISO 20022 journey.
