SEPA and PE-ACH: Evolving service requirements Moderator: Giorgio Ferrero, EBA CLEARING Speakers: José Beltran, EBA CLEARING Thomas Egner, Commerzbank Björn Flismark, SEB Serge Wagener, Banque et Caisse d'Epargne de l'Etat
The evolution of EBA CLEARING’s SEPA Services José M Beltrán, Director STEP2 Services, EBA CLEARING 2
STEP2 SCT Ramp-up STEP2 SCT currently processes 185,000 payments a day 54% migrated from STEP2 XCT 46% new SEPA payments STEP2 SCT SEPA domestic 23% of SCT payments are within the same country STEP2 SCT is SEPA domestic to: Luxembourg, Finland and major Italian Banks A number of other countries
14 Technical Facilitators STEP2 SCT: Participants 111 Direct Participants 4,341 Indirect Participants 95% of FIs having adhered to the EPC SCT Scheme Euro SIC VOCALINK IBERPAY SCC EQUENS (DE) SIBS DIAS KIR EQUENS (NL) STEP.AT SIA SSB SECETI BANKA SLOVENIJE PBS STEP2: SEPA HUB 14 Technical Facilitators in 12 Countries
Recent and ongoing developments Launch of STEP2 SCT Service on 28th January 2008 Payments Ahead of Value Date (Warehousing), STP Returns, ISO 20022 XML messaging Implementation of M-PEDD Phase 1: STEP2 SDD Service: Ready to use–in Test & Training Introduction of a Same Day Processing Cycle on 5th May 2008 SEEBACH – Development of Multilateral Netting Module (MNM) Settlement of STEP2 SCT Service in TARGET2: on 8th December 2008 Multilateral Net Balances Two Settlement cycles on D – 07:30 & 14:00 Supporting Settlement of Bilateral Clearing Introduction of a Night-Time Settlement Window for STEP2 SCT Settlement on D at 01:30 CET
SEPA and PE-ACH The Luxembourg migration Serge Wagener, Banque et Caisse d’Epargne de l’ Etat, Luxembourg 6
The Luxembourg SEPA migration (1) September 2002 Introduction of IBAN for domestic usage July 2003 BCEE is first bank in Luxembourg to participate in STEP2 XCT, and offering Entry Point services Reachability is assured October 2005 IBAN becomes mandatory for domestic credit transfers all domestic transfers are SEPA-compliant Decision taken to migrate domestic payments to STEP2 XCT 7
The Luxembourg SEPA migration (2) October 2006 Shut down of local ACH, LipsNet January – February 2008 Technical migration from STEP2 XCT to SCT Today: 67% of incoming payments via SCT 82% of outgoing payments via SCT Returns Reachability 8
The Luxembourg SEPA migration (3) The best choice in 2006: does it remain a good choice in the medium and long term? 2010 deadline challenged by a number of banking communities The discussion is on-going Commitment from other banking communities to move to a pan-European infrastructure? Trend is positive Uncertainty about how the future European infrastructure for retail payments will develop The landscape is changing Uncertainty about future costs The business case is positive, for credit transfers
SEPA and PE-ACH Evolving service requirements Thomas Egner, Commerzbank 10
Evolving service requirements – where do we come from? XCT as a pre-SEPA service Successful provisioning and start of the new SEPA SCT Service (SDD to follow), i.e.: Implementation of core payment scheme Implementation of defined processes In time, in money Significant REACH provided to the users Providing service for all market parties, i.e. Financial Institutions (DP and IP) plus CSMs Attractive pricing policy (Re-)Use of already existing technology Robust and reliant system Separate product/scheme/service on existing platform Use of well-functioning clearing and settlement service 11
Evolving service requirements – where should we go? Chase for volume, i.e. national transactions, new business fields, e.g. opening the platform for other services/schemes such as cards Building components around existing schemes, resulting in a better service without changing schemes, i.e. more settlement cycles Low profile service vs. full service offering with an individual choosable service structure (by flexible bundling) Overall attractive pricing offering Support of nationally/user group defined AOS
Future developments STEP2 SCT Service enhancements EPC Rule Book changes v 3.2 & User enhancements – 2nd February 2009 STEP2 SDD Service enhancements EPC Rule Book changes v 3.1 & User enhancements – 2nd November 2009 M-PEDD phase 2 Implementation & launch of a STEP2 B2B Debit Service – 2nd November 2009 Evolution of STEP2 Interactice Workstation Services Risk mitigation, e-mandates, Development of file-based service for other euro payments Multi-currency processing service Card Settlement E-invoicing The full up-to-date picture of the situation in terms of reach across SEPA of banks that have signed the EPC SCT Adherence Agreement. Currently, STEP2 SCT reaches 93 percent of the adhering banks and the number continues to grow. An impressive picture after these few months of operations. [NB: Italy looks so white because currently only about 34% of the institutions having signed the EPC SCT AA are covered by STEP2 – this will dramatically change with the connection of ICCREA] However, there are still about 300 banks that have signed the Adherence Agreement but are still missing in our routing tables...