The Bank of England is currently migrating the CHAPS payment system to the ISO 20022 message standard.
The new standard provides an improved message structure, including additional data beyond the core payment message. These changes will allow for simpler integration of payments into wider business processes, providing a range of benefits.
The benefits include:
- reduced process costs through minimising disputes and supporting straight through processing
- improving cash management and certainty of payment by coordinating transaction chains
- minimising fraud by improving validation of parties.
To ensure that benefits are realised across the community a survey has been launched. The survey will inform the benefit case to publish Market Guidance documents showing specific benefits and how they might be realised in different market sectors.
The first activity is specifically looking at the property sector.
This survey will help the Bank understand how CHAPS users in the property sector could benefit from the new message standard. The findings from this survey will help inform the Market Guidance to be published by the Bank of England.