Clear2Pay, an international technology provider of next generation payment solutions for financial institutions, has announced the results of the Single Euro Payments Area (SEPA) Migration End Date Survey, executed in co-operation with Finextra. Survey respondents indicate that they believe that the competitive space for SEPA will be with their corporate customers – and that they (89%) need to offer those customers better solutions and services. Eight-seven percent of respondents also call for an increased and better representation of corporates in SEPA governance.
Other key findings include:
- Although banks concede corporate client payment services are key to the success of SEPA, 26% of banks are not yet ready to respond to incoming request for proposals (RFPs) from corporate clients, whereas 75% of bankers concede that SEPA will negatively impact the number of banking relationships their customers hold and 74% fear competition from corporates connecting directly to clearing systems and thus reducing payment volumes with their banks.
- It is not at all clear what the SEPA cost and revenue streams in a post-deadline market will be (77%).
- For 52% of the respondent banks it is not clear how they will replace the revenues traditionally generated by multilateral interchange fees (MIFs).
- The existing infrastructure of many banks is not currently fit-for-purpose in a post-deadline market and SEPA is seen as a driver for centralisation of payment operations by 91% of the banks.
- Many resources are needed between now and the migration deadline and in particular the knowledge of testing SEPA instruments is not widespread, 97% of respondents expect increased testing efforts, with a lower percentage being confident they can handle this with their own internal teams.
Ainsley Ward, head of management consulting at Clear2Pay, said: “This survey has confirmed a number of anecdotes, but has also thrown up a few interesting new ideas. It is clear that the focus in SEPA migration has, under the much desired pressure of the end date, moved from infrastructure readiness to a more customer-centric viewpoint. Banks are looking for ways to protect their volumes from risks that might arise by direct-connecting corporates or competitive banks that view SEPA as a relationship tool with their corporate clients and who actively pursue a growth strategy. Once the migration shake-down is behind us, those less adventurous banks will likely reconsider their future in the payments market.”
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