The payments industry is poised for positive change across the whole ecosystem. While cross-border transactions have become faster and more transparent, the processes for handling exceptions and investigations (E&I) remain stuck in the past and are dominated by manual workflows and outdated messaging formats. This inefficiency is about to end. Swift’s introduction of ISO 20022-enabled Case Management represents a transformative leap toward automation, standardisation, and operational resilience.

 

Why Change Is Urgent

According to Swift, resolving a payment investigation can take five to ten days, even though most international payments settle within hours. The culprit? Legacy MT messages - free-form, unstructured formats that dominate over 72% of E&I communications (Swift E&I Transformation Report, April 2025). These messages were never designed for automation, forcing banks to rely on manual interpretation, repetitive data entry, and multiple follow-ups. The result is higher operational costs, increased risk of errors, and frustrated customers who lack visibility into payment status.

“The industry spends an estimated $1.6 billion annually investigating delayed payments. Much of this cost stems from manual, outdated E&I handling.” - Swift Case Management Launch, April 2025

 

The State of E&I Today

Despite advances in payment speed, exception handling has not kept pace. Investigations often involve multiple intermediaries, incomplete data, and manual rekeying between systems. Each step adds delays and increases the risk of errors. Customers are left in the dark, leading to dissatisfaction and, in some cases, attrition. The financial impact is significant: higher operational costs, potential penalty fees, and reputational damage.

“Clients now expect the same transparency for cross-border payments as they do for domestic real-time transactions.” -  Swift E&I Transformation Report, April 2025

 

Key Benefits of Swift Case Management

Swift’s Case Management framework introduces a centralised, structured process for exception handling. Instead of sending unstructured messages through the payment chain, banks will now exchange structured ISO 20022 messages, via the Case Manager. Each message carries a unique end-to-end reference number, giving all parties visibility over its status in real time. Automated routing ensures cases reach the right party in a timely manner, removing the need for manual forwarding. The framework also supports API connectivity, enabling integration into existing workflows and systems rather than relying on manual portals. ISO 20022 is not just a messaging upgrade; it’s the foundation for automation and interoperability across the global payments ecosystem.

 

The Timeline You Can’t Ignore

Alongside the ongoing standard changes for ISO 20022, Swift has introduced a series of regulatory and operational updates designed to strengthen exception handling across global payments. One of the most significant among them is the upcoming mandate for Stop and Recall, a Swift Case Management service that lets a bank immediately halt and attempt to retrieve a payment after it has already been sent into the cross‑border payment chain.

From November 2026, all financial institutions will be required to use the Stop and Recall service within Swift Case Management for the submission and processing of payment cancellation requests.

Swift’s ISO 20022 mandate journey:

  • 2024–2025: Early adopters begin implementation
  • November 2026: Mandatory receipt of ISO 20022 case messages
  • End of 2027: Full enforcement; MT199/299 messages retired

Banks that fail to meet these deadlines risk regulatory penalties and reputational damage. Waiting until 2027 is a false economy. Quick fixes like manual portals or message translators may seem convenient, but they add complexity, increase risk, and will ultimately need replacing).

 

The Business Case for Acting Now

ISO 20022-powered Case Management isn’t just about compliance: it’s about unlocking value. Estimates suggest adoption could reduce resolution times by up to 80%, saving the industry $600 million annually in operational costs (Swift Case Management Launch Data, April 2025). Early adopters are already seeing 3–5% revenue uplifts thanks to improved customer experience and faster case resolution (PaySpace Magazine, 2025).

Beyond efficiency, the competitive stakes are high. Research shows up to 35% of firms would redirect payments to banks offering ISO 20022-based visibility and proactive exception handling (Swift E&I Transformation Report, April 2025).

Reducing the cost and resolution times for exceptions will improve KPIs against the G20 Roadmap for cross-border payments. The gains will show up most clearly in the cost KPI, through lower operational overhead, and the speed KPI, by increasing the share of payments credited within a single business day.

 

Why Quick Fixes Fall Short

Some institutions may be tempted to implement temporary solutions such as manual portals, message translators, or spreadsheets to meet initial compliance requirements. These short-term measures only postpone the inevitable.

They keep legacy systems running but add operational complexity, increase manual effort, and introduce additional layers of risk. As full Case Management compliance becomes mandatory, those temporary tools will need to be replaced.

Worse, they create data fragmentation and add risk precisely where banks can least afford it - exception management. Quick fixes are a waste of time. They add complexity, slow things down and dilute the benefits of automation.

 

Partnering for Success

Transitioning to ISO 20022 requires more than technology - it demands specialist expertise. Banks must update workflows, integrate APIs, and ensure systems can send, receive, and interpret structured messages. This is where trusted partners make the difference.

Providers like Bottomline, one of the world’s leading Swift bureaus with over 35 years of experience, offer end-to-end support from project planning and testing to integration and automation. Our deep knowledge of Swift standards and ISO 20022 migration ensures banks can meet deadlines without disruption, while aligning Case Management with broader payment transformation initiatives.

 

A Catalyst for Modernisation

The November 2027 mandate is more than a regulatory milestone: it’s an opportunity to future-proof operations. By embedding Case Management into modern payment hubs and leveraging automation, banks can eliminate manual bottlenecks, improve auditability, and deliver the transparency customers expect.

Those who act now will not only comply, they’ll lead. They’ll transform exception handling from a cost centre into a source of competitive advantage, driving efficiency, resilience, and customer trust.

 

Key Takeaways

  • ISO 20022 Case Management is the final piece of the jigsaw for payments modernisation
  • All institutions are required to use the Stop and Recall service within Swift Case Management by November 2026
  • Swift mandates full compliance to ISO 2022 by end of 2027—don’t wait until the last minute
  • Acting early unlocks efficiency, cost savings, and competitive advantage
  • Partnering with payments experts ensures a smooth transition and strategic alignment

The clock is ticking. Partner wisely, plan early, and turn compliance into a catalyst for growth. Act now by scheduling a 1:1 strategy workshop with a Bottomline expert.