There is currently a lot of discussion regarding the migration from MT940 to XML, also known as ISO 20022. I can explain what is happening, why it matters, what challenges exist, and what this means for companies and banks.

What is ISO 20022 and why the migration

ISO 20022 is a modern messaging standard for financial communication, covering payments, reporting, cash management, and more. Unlike older MT (SWIFT-FIN) messages, ISO 20022 is XML-based, allowing much more structured data, including additional fields, hierarchy, and metadata. This richer data enables easier automation (for example, reconciliation), better compliance (sanctions screening, etc.), and more robust reporting. SWIFT is decommissioning certain MT message types, particularly categories 1, 2, and 9 on the interbank network. After this migration, ISO 20022 will become the main standard for interbank communication, such as reporting and payments.

Specifically: Migration of MT940

MT940 is the old SWIFT message for “customer statements,” which shows bank account balances and transactions at the end of the day. Its ISO 20022 replacement is mainly camt.053 (Bank-to-Customer statement). Other MT formats are also migrating:

• MT942 (interim report) → camt.052
• MT900/910 (debit/credit confirmations) → camt.054

Some banks, like Deutsche Bank, have deadlines around November 2025 for certain messages. Some camt versions, such as camt.053 v08, define thousands of tags, meaning that much more information can be transmitted but the complexity increases.

Challenges and points of attention

Technical impact on systems
ERP systems and Treasury Management Systems must handle the new XML structures. Mapping old codes (like Business Transaction Codes in MT) to new ISO codes is required. In SAP systems, XSLT transformations may be needed to read camt.053 XML. Some older accounting systems cannot process or store the additional data from camt.053.

Data quality / master data
Address fields often need to be structured. Unstructured addresses are less accepted in ISO 20022. Companies may need to clean master data to ensure that new mandatory fields, such as LEI or structured addresses, are correctly processed.

Operational risks
During the transition, there is a risk of disruptions: parsing errors or incorrect mappings can lead to payment errors or reconciliation issues. Some companies adopt a phased migration, where banks send both MT940 and camt.053, allowing internal systems to handle both formats and gradually transition. Consolidators that aggregate statements from multiple banks may also face migration challenges. Some banks offer “backward conversion,” converting camt.053 back to MT940 for clients not yet ready, but this is not guaranteed.

Regulatory / compliance
The richer data in camt messages provides better opportunities for compliance, such as anti-money laundering monitoring, because more structured fields are available. Automation can reduce human intervention and thus lower risk.

Change management
Migration is not just an IT project: it affects processes, people (treasury, finance, operations), and governance. Testing is crucial: sample files from banks must be used, and internal systems must be tested thoroughly. Stakeholder management is essential, coordinating IT, treasury, accounting, and banks regarding timing and approach.

Benefits of the migration

• More data and transparency: ISO 20022 provides more structured information than MT, improving visibility of individual transactions, payment sources, and details per invoice.
• Better reconciliation: With more information, payments can be automatically matched to invoices or other records, improving efficiency.
• Future-proof: ISO 20022 is the new standard for financial messaging, preparing organizations for future developments.
• Improved compliance and risk management: structured data supports screening and monitoring better than the old MT messages.
• Better integration with modern systems: contemporary treasury, ERP, and reporting systems can leverage XML for dashboards and analysis.

Critical points

Not all banks deliver “native” camt.053; some convert MT internally, meaning not all extra data is available. Version differences exist (camt.053 v02, v08) with different fields, requiring flexibility. Costs and time must be considered, as the migration requires investment in IT, project management, testing, and training.

Conclusion

The migration from MT940 to ISO 20022 (camt.053) is part of a broader effort in the financial industry to phase out legacy MT messages and replace them with modern, structured XML messages. This offers many advantages, particularly more data, better automation, and improved compliance, but also brings technical and organizational challenges. Companies must act proactively: initiate migration projects, inventory systems, test with banks, and ensure processes are ready for the new reality. For many organizations, this migration will provide strategic benefits in treasury, reporting, and risk management.

If your organization is preparing for this transition and could benefit from specialized expertise, I can connect you with highly experienced interim treasury professionals. experts I have recently collaborated with on a similar ISO 20022 migration assignment.

Let’s talk more!

At a recent treasury event, we invited participants to take part in a short quiz about how digital tools and AI are influencing treasury work. The results were clear: technology is transforming the field faster than many expected, and treasury professionals are eager to keep up.

How AI Is Transforming Treasury

Artificial intelligence is no longer just about automation or efficiency. It combines technology with human insight to make treasury operations smarter, faster, and more strategic.

When asked what excites them most about AI, professionals mentioned three key points:

• Automating routine tasks to focus on more meaningful work
• Improving forecasting accuracy and real-time insights
• Supporting quicker, smarter decision-making

AI is not replacing people. It is giving them time to focus on strategy, creativity, and impact.

Different Thinking Styles

When faced with complex funding decisions, treasury professionals show different strengths. Some focus on streamlining processes and ensuring compliance, while others prefer to build models or discuss priorities with colleagues. This mix of structure, analytical thinking, and collaboration is what makes treasury work effective.

Learning by Doing

Most participants said they learn new technologies best by applying them directly. They are curious, hands-on, and open to exploring new ways of working. This approach helps them stay open and ready in a field that never stands still.

The Skills That Matter Most

• Precision and process focus
• Strong data and analytical capabilities
• Collaboration and clear communication

The future of treasury depends on the partnership between people and technology. AI can process large amounts of data, but humans turn insights into action. Those who can combine technical understanding with strategic thinking will not just adapt to the future of treasury but help shape it.

Many corporates now understand the value of external recruitment expertise. That is a positive development. However, some companies take it too far by assigning the same vacancy to multiple agencies at the same time.

Although this may seem like a smart way to increase reach and speed, it often leads to inefficiency, confusion, and damage to the employer brand.

Reasons why this approach is counterproductive:

1. Candidate Overload

When multiple agencies approach the same candidate for the same role, it creates noise. Candidates may feel overwhelmed or question the professionalism of the hiring company. In some cases, they may withdraw from the process entirely.

2. Loss of Control

With several agencies involved, there is no central coordination. This leads to inconsistent messaging and a fragmented candidate experience. The company loses control over how its brand is represented in the market.

3. Representation Conflicts

A candidate can only be officially represented by one agency. When multiple agencies reach out, disputes arise over who introduced the candidate first. This causes delays, administrative issues, and frustration for all parties.

4. Lower Commitment from Agencies

Agencies that know they are competing for the same role are less likely to invest time in understanding the company and its needs. They focus on speed rather than quality, and may assign less experienced consultants to the task.

5. Higher Costs in the Long Run

If multi-agency searches become standard, agencies will need to increase their margins to cover the risk of unpaid work. This leads to higher costs for the client, without a guarantee of better results.

6. Exclusivity Builds Partnership

Choosing one agency and giving them a short exclusive period, for example two weeks, encourages commitment and quality. The agency will invest time, communicate clearly, and represent the company professionally. If the agency does not deliver, the company can always reassess and choose another partner.

In recruitment, more is not always better. Strategic exclusivity leads to better results, stronger relationships, and a more professional candidate experience. Companies should take the time to select the right partner, and give them the space to deliver.

One of our clients was running a search that took much longer than expected. The role itself was attractive and the requirements were clear, but the process kept slowing down. As time passed, keeping candidates warm became a real challenge. Even the strong profiles who were initially enthusiastic started to lose momentum, and a few eventually dropped out altogether.

We knew the key was consistency. Instead of rushing or pushing harder, we focused on what makes the biggest difference in situations like this: clear communication, timely feedback, and honest expectations. By staying close to the candidates throughout the process, we managed to keep engagement high, even when the timeline stretched.

In the end, the client selected a candidate who remained motivated from the start to the very last step. They had the right background, the right mindset, and the patience to navigate a slower process, and they are now happily placed.

This placement was a reminder that even when a search takes longer, steady communication can keep good candidates on board.

If you are struggling to keep a process moving, let us support you!

I recently placed a really promising candidate who the client liked right away and wanted to move forward quickly. When it came to negotiations, there was a mismatch in expectations, the offer didn’t fit what we had discussed initially.

This is exactly where my role as an external recruiter shows its value. I stepped in, talked to both the candidate and the company, clarified everything, and smoothed out the miscommunication. In the end, the issue was resolved and the match went through successfully, with the salary aligning with both sides’ expectations.

Moments like these really show how working with an external recruiter can add unexpected but important value. When companies make full use of their recruiter, it avoids rushed decisions, leading to better results and a smoother, more enjoyable process for everyone involved.

Lately, I keep getting the same question from my interim pool: “How is the market?”

At first glance, it might look like we have been quiet. But the truth? Far from it. With over 250 treasury professionals in our network, and up-to-date info on their skills and availability, I usually already know who fits a role before it even hits the public channels.

During an intake, I rarely spend time on slides or job postings. I pick up the phone, call the right candidates, and fill the role efficiently. That is why our assignments are often fulfilled faster than you would expect.

A few roles we have placed in the past few weeks: Interim Treasury Analyst, Interim Treasury Specialist, Interim Part-Time Group Treasurer, Interim Financial Risk Specialist, Interim Treasury Director, and so on.

Takeaway: Candidates, stay in touch to stay top-of-mind. Employers, if you need a temporary treasurer quickly, you know exactly where to turn.

Over the past six months, I have been sharing weekly talent spotlights on my page and on Treasurer Search’s page. If you would like to get a feel for the types of profiles we typically work with, have a look.

In our work, we are in constant contact with corporate treasury teams in transition: building, downsizing but most definitely also TMS and other technology implementations. TMS vendors and treasury consultants do a great job driving innovation and we are happy we can also help them finding their right staff members.

Sometimes we encounter a situation where, after the implementation, only a small portion of the solution is used. Also we hear corporates who simply cannot find the budget for both the license cost as well as the implementation.

This is to inform you about a “non-standard” solution that worked well with a few of our clients:

The standard solution 

A corporate asks a treasury consultant to support in a vendor selection and asks the same consultant to do the implementation afterwards. It also happens often that the vendor screening is done by the corporate and the vendor also implements or suggests an implementation consultant. There are pros and cons in working this way but for many results are fine.

The non-standard way

I mentioned tackles, to a certain extent, cost and making the most of the software you bought. The idea is quite simple: instead of letting externals assume the role of both project leader as well as content matter expert, the own treasury staff takes as much of these roles as possible. The work they cannot do, because they have to invest time in the implementation, is covered by operational, relatively cheap interim treasury support.

Of course most corporate treasurers do not have expertise at the level of vendors or consultants but with their help, leading the project, they will have to learn more, feel more ownership and use the solution better. It would also be naïve to assume that treasurers, on average, have the same project management skills as consultants have, but many of them can get the job done at substantially lower cost.

We constantly keep an eye open for who is available, especially for interim assignments. Finding candidates who can do the operational and are available on interim basis is not easy but our network is there for you.

We look forward to your call!

My colleague recently had an intake meeting with an NGO that was looking for a part-time permanent position to set up a small treasury function. Since this was something completely new to the organization, my colleague quickly realized that building it from scratch would normally require several years of experience. However, she also pointed out a potential issue: once everything was up and running, a senior candidate might quickly get bored and move on.

To solve this, she suggested starting with an interim professional who could design and establish the treasury function, and later hand it over smoothly to a junior colleague in a permanent role. That is where I came in. As soon as I heard the story, three names immediately came to mind.

After a short introductory call with the client, I reached out to my three interim contacts and proposed them for the assignment. The first interviews were scheduled very quickly, and despite the holiday season, the follow-up meetings soon followed. The decision was made in no time, and now my interim professional is about to start building the NGO’s brand-new treasury function.

How could it be any other way?

With a client where we had previously made a successful placement, we were once again invited to find them an Interim Group Treasurer and a new Interim Risk Manager. Thanks to our strong partnership and a crystal-clear briefing of their needs, we were able to present suitable candidates within just 24 hours.

The summer holidays could have slowed things down, but not this time. The hiring manager stayed fully engaged, even taking video calls from his holiday spot!

As a result, we had contracts signed and sealed within just one week of the initial intake. Now that is what we call teamwork.

This past month has been a great reminder of how powerful your network can truly be when it comes to making the right match. I was able to support several clients simultaneously, all with very different needs,  including a Treasury Director Risk role and an Investor Relations Manager.

The key? Staying close to both sides of the market and knowing exactly who to call when the right opportunity comes up.

One of the highlights was successfully filling a “tough-to-crack” role through someone in my extended network, someone I had spoken to over a year ago. That connection, built on mutual trust and a bit of patience, turned into a perfect fit for a so-called “warm” client of ours. It was a great reminder: the best matches don’t happen by chance; they are built over time.

Juggling multiple candidates and clients at once pushed me to be sharper than ever. Communication had to be clear, consistent, and quick. I have learned that managing expectations on both ends, is half the battle. And sometimes, the best thing you can do for a candidate or client is simply to listen before offering advice.

Looking back, I realize how much my earlier experiences shaped this month’s success. From learning how to ask better questions to recognizing when someone is truly “ready for the next step,” every interaction adds up. This job is about people, not just placements – and every good match reflects that.

On to the next!