ISO 20022: Address Data Elements in Structured Format

ISO 20022 introduces structured address data elements, distinguishing between 'Name' and address components. Until November 2025, both structured and unstructured addresses can be used in cross-border payments. The hybrid address version combines structured and unstructured address details. SAP delivers format mapping templates that implement only the structured address version for formats based on ISO20022's 2019 version.

ISO 20022, a global standard for financial messaging, introduces structured address data elements to enhance the clarity and accuracy of transaction data. These elements distinguish between 'Name' and various address components, such as 'Building Number', 'Street', 'Town', and 'Country' (code), providing a granular structure for capturing party information [1].

Until November 2025, both structured and unstructured addresses can be used in cross-border payments, accommodating the coexistence period of ISO 20022 and MT formats. This allows for a smooth transition, enabling corporates to continue using their current address databases. However, as of November 2025, payments must be initiated using structured ISO 20022 party addresses, which may pose a challenge for those maintaining unstructured address data [1].

The hybrid address version, introduced by ISO 20022, combines structured and unstructured address details. It allows the integration of structured ISO 20022 address elements with up to two lines of 70 characters of unstructured "Address Line." The structured elements "Country" Ctry and "Town Name" TwnNm are mandatory, and their content cannot be repeated in the AdrLine elements [1].

SAP delivers format mapping templates that implement only the structured address version for formats based on ISO20022's 2019 version, such as PAIN.001.001.09 and PAIN.008.001.08. These templates ensure that all sub-tags of PstlAdr are defined for later use in custom copies [1].

The transition to ISO 20022, particularly the hybrid address format, is a significant step towards improving data quality and streamlining processes. Financial institutions adopting these standards, such as Scotiabank and Deutsche Bank, have seen improvements in data quality, reconciliation efficiency, and cash application speed [2].

As the deadline for full implementation approaches, financial professionals and corporates should familiarize themselves with the new standards and ensure their systems are compliant. The hybrid address format offers a flexible solution that combines the benefits of structured and unstructured data, paving the way for more efficient and accurate cross-border payments.

References:
[1] Structured Address Data Elements in ISO 20022 Messages. SAP Community. Retrieved from https://community.sap.com/t5/enterprise-resource-planning-blog-posts-by-sap/structured-address-data-elements-in-iso-20022-messages/ba-p/14174822
[2] Swift. ISO 20022 Financial Institutions Focus - Payments Instructions. Retrieved from https://www.swift.com/standards/iso-20022/iso-20022-financial-institutions-focus-payments-instructions/document-centre