Deutsche Bank has been actively involved in the transition to ISO 20022, the new global standard for payments messaging. According to Avot, the bank has always been guiding clients through the migration journey. "We have been spending a lot of time educating our clients, showing them the way to a successful migration," he said.

For Deutsche Bank, the implementation of ISO 20022 has gone beyond simply deploying new technology. The enriched messaging format has allowed the bank to significantly improve payment processing times and reduce compliance-related friction through automation. For example, the bank now processes four million operations automatically per month, drastically enhancing efficiency.

Avot emphasised that Deutsche Bank’s ISO 20022 transition is paying dividends. “We are seeing the benefits of leveraging the platform we have built," he remarked, noting that clients are beginning to experience enhanced payment processing as more institutions adopt the standard.

Despite the significant progress, Avot acknowledged that challenges remain. He pointed out that while some areas have embraced ISO 20022, adoption rates are still in the mid-20% range for key currencies like the US dollar, euro and British pound. "We are a bit more than a year ahead," Avot explained, adding that there is still much work to be done in terms of application and interpretation of the standards across jurisdictions.

Deutsche Bank is mitigating these challenges by investing in artificial intelligence (AI) and machine learning (ML) technologies to enhance its payment systems. These technologies are helping the bank reduce the number of blocked payments due to compliance issues. "We've seen a real reduction in the number of payments blocked, thanks to AI and machine learning systems learning from past transactions," Avot explained. This has significantly boosted straight-through processing (STP) rates and improved operational efficiency.

ISO 20022 is not just transforming payment efficiency but also reshaping financial crime compliance. Avot highlighted that the enriched data provided by the new messaging format is helping Deutsche Bank and its clients build a robust risk management ecosystem across the payment chain. By automating the processing of enriched data, the bank can block suspicious transactions more effectively and reduce false positives, which improves compliance screening.

"Our STP rates are reaching new heights thanks to the enriched information we are processing and interpreting," Avot noted. The bank’s AI-driven compliance systems have enabled faster, safer payment processing and fewer manual interventions, reducing the operational burden.

One of the key components of Deutsche Bank's financial crime prevention strategy is collaborative data sharing. Avot stressed that fraud prevention cannot be achieved in isolation—it requires cooperation between banks, clients, and technology providers. "You need to build a net of security and safety by exchanging information and collaborating with clients and partners," he said.

Deutsche Bank has built partnerships with fintech companies and solution providers to enhance the security of its payment ecosystem. These partnerships have enabled the bank to share experiences, exchange knowledge, and collaborate on solutions that make the entire payment ecosystem safer and more reliable.

"Collaborative data sharing in compliance and fraud prevention is not just about technology," Avot explained. "It’s about building partnerships and creating an ecosystem that can detect and block fraudulent transactions more efficiently."

As ISO 20022 continues to reshape the global payments landscape, Avot said that Deutsche Bank is positioning itself for both technological adoption and collaboration. By leveraging enriched data, AI, and machine learning, the bank is improving payment processing times, reducing compliance friction, and building a safer financial ecosystem through partnerships. According to Avot, these innovations are just the beginning, and Deutsche Bank is committed to driving further improvements as the industry continues to evolve.