The North American banking service codes - currently required in any electronic bank billing statement using ANSI 822 Transaction Set standards - have been converted by Association of Finance Professionals experts into a completely new and separate set of global service codes compliant with the BSB/TWIST standards. The launch of the AFP Global Service codes will enable companies to identify service charges on their electronic bank account statements for banks within the US and world-wide - as long as the banks and the system providers adopt the brand new standard. This is likely because the new AFP Global Service codes are scheduled to be adopted by ISO in 1Q 2012 as the XML 20022 based standard codes for bank services.
There are 800 identifiers covering all the main banking services offered by cash management banks world-wide. The eight digit codes will automatically be added to each line on bank statements, so enabling all charges and services to be identified. The days of 'What is this?' charge or service will disappear eventually when the banks, and the treasury management system service providers adopt the new standard codes and definitions. Nevertheless, the new standard needs only to be adopted by a few major banks and the major TMS suppliers for it to have a major impact.
At the moment, banks and system providers are waiting for the new standards to be adopted by ISO, but already HSBC and Wall Street Systems have announced their commitment to adopt the new standards. A key test of whether a bank or system provider is truly committed to providing Bank Relationship Management (BRM) services will be whether they support these Global Service codes. Those who do not will undoubtedly lose business, these new standards are the beginning of a revolution in BRM.