Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Birth of the Single Euro Payments Area
Benefits for US Corporations
The information contained herein does not constitute and shall not be construed to constitute investment, tax or legal advice by Deutsche
Bank AG or any of its affiliates, including Deutsche Bank Trust Company Americas nor its affiliates (collectively "Deutsche Bank").
The first 6 weeks / next steps2222
3333 Corporate impact and preparations
1111 SEPA – the background
4444 How a bank can help you
SEPA · page 2
4444 How a bank can help you
What is SEPA?
“SEPA will be the area where citizens,
companies and other economic actors will be
able to make and receive payments in Euros
within Europe, whether between or within
national boundaries, under the same basic
SEPA · page 3
national boundaries, under the same basic
conditions, rights and obligations, regardless of
their location”
(European Payments Council)
SEPA – Scope & New Payment Instruments
� Payment instruments and schemes
– Credit Transfers (28. January 2008)
– Direct Debits (2009)
– Card transactions
– Phase out of national mass payment schemes (by 201x)
– Orderer and beneficiary account located in the SEPA zone
SEPA · page 4
– Orderer and beneficiary account located in the SEPA zone
� Legal Framework (European Commission)
– European Payment Services Directive
– Implementation into national law by November 2009
� Market Infrastructure
– From 39 local systems to a small number of pan-European clearing houses (PE-
ACH’s)
The SEPA area
The European Union – Euro Countries (15)
Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovenia and Spain
The European Union – non - Euro Countries
Bulgaria, Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Poland, Romania,
SEPA · page 5
Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Sweden, United Kingdom
The European Economic Area
Iceland, Liechtenstein, Norway
and additonally
Switzerland
…… but €-transactions only!
� New formats and standards
– Uniform ISO 20022 based SEPA xml format (mandatory for interbank use /
recommended for client/bank interface)
� New data elements
– IBAN and BIC to replace national bank code and account number
SEPA changes at a glance(SEPA Credit Transfer and SEPA Direct Debit)
SEPA · page 6
– IBAN and BIC to replace national bank code and account number
– End-to-end data flow for Corporate process improvements: orderer reference field, full
remittance information, uniform standards and codes for exception processes
� New processes
– Harmonized execution timelines
– Harmonized exception processes
The first 6 weeks / next steps2222
3333 Corporate impact and preparations
1111 SEPA – some background
4444 How a bank can help you
SEPA · page 7
4444 How a bank can help you
The first 6 weeks
� 28. January 2008: first settlement day for SEPA credit transfers
� 4000 + banks representing ca. 95 % of payment volumes adhered to scheme
� Wide reachability throughout Europe was achieved
� Only minor operational issues were quickly resolved
� Volume ramp-up after week 1 – mainly intra-EU crossborder volumes
SEPA · page 8
� Volume ramp-up after week 1 – mainly intra-EU crossborder volumes
� Migration of local mass payments expected in the course of 2nd half 2009
when IBAN / BIC conversion tools are available to Corporates
EBA Step2 SCT SEPA Processingper 18 February 2008
Number of Transactions processed per day
SEPA · page 9
Source: EBA Clearing, 02/2008
Next steps
� Full sender capability for credit transfers by all banks (2008)
� Implementation of the Payment Services Directive by the end of 2009
� Bank individual developments of products and value added services around
B-t-C and B-t-B direct debits (2008/2009)
� Launch and mass take-up of SEPA direct debit in 2009 / 2010
� Additional services developed by European Payments Council – to be
SEPA · page 10
� Additional services developed by European Payments Council – to be
launched 2009 onwards
– On behalf of Payments
– Online Payments
– Electronic Mandate submission and validation
� Decision on end date for parallel use of legacy / SEPA schemes to be taken
2008 2010 201x20072006before 2006
Development of SEPA Analysis / technical Live-Testi Mass-Adaption and
Procedures and technical set-up
Timelines
SEPA · page 11
Development of SEPA
schemes and standards
Analysis / technical
development
Live-
Pilot
Testi
ng
Mass-Adaption and
-Migration
Development of basic
services and VAS
Products
SEPA-wide competition
Corporates are free to decide on timing of SEPA migration
BUT: potential end date of parallel use of legacy / SEPA schemes to be
respected
The first 6 weeks / next steps2222
3333 Corporate impact and preparations
1111 SEPA – some background
4444 How a bank can help you
SEPA · page 12
4444 How a bank can help you
Today: US Corporates with decentralized accounts & payment flows in Europe
Corporate client
Beneficiaries
SEPA · page 13
Payment orders Domestic PaymentsEU/EEA countries
Beneficiaries
Situation today:
Client sets up accounts in
each EU country to
initiate local payments in
order to save x-border
fees and have uniform
handling / execution
times
Beneficiaries
Beneficiaries
Beneficiaries
The future: single entry point into Europe with SEPA
Corporate client
SEPA · page 14
SEPA payments (Intra EU/EEA + domestic ACH)SEPA countries
With SEPA:
Client only needs one
account in EU to initiate
SEPA payments with
uniform standards and
pricing
Trends
Centralization
� Centralized Treasuries
� SSC / Payment factories
� In-house Banks
� Single ERP/TMS
Drivers Results
Strategic Opportunity - Current Corporate Market Trends
Costs
Reductions
SEPA · page 15
Standardization
Automation
� Seamless IT interfaces
� Dematerialization of paper
� Straight-Through-
Processing
� SWIFT for corporates
� XML formats
Reductions
Risks &
Control
SEPA impact
… and how SEPA helps
Trends
Centralization•Less accounts needed across Europe
•Simplified centralization of liquidity
SEPA · page 16
Automation
Standardization
•Easier reconciliation through end-to-end
data flow
•Utilization of new data elements
•Simplified system configuration as local
formats will be eliminated
•Harmonized Database
•One format for all of Europe (e .g. XML, CSV)
The Corporate SEPA Checklist – get prepared
Analyze operational and technical (system) impact of SEPA changes
(formats / data elements / processes) – assess implementation effort
Analyse set-up of accounts and Cash Management structures in
Europe – benefits of SEPA for your company
Decide on future structure of Cash Management structures;
assess quick-wins vs. medium term developments
SEPA · page 17
(formats / data elements / processes) – assess implementation effort
Collect IBAN and BIC from business partners and include own
IBAN/BIC on invoices
Choose a SEPA Bank with the most flexible solutions to help your
transition and provide value added services in new environment
Decide on SEPA migration timeline and approach
The first 6 weeks / next steps2222
3333 Corporate impact and preparations
1111 SEPA – some background
4444 How a Bank can help you
SEPA · page 18
4444 How a Bank can help you
Payment Services
DirectiveRequirements &
Timelines
Business rules,
standards & policies
The SEPA Initiative
1 2 3 4
Deutsche Bank’s SEPA Proposition – The 4 Pillars
SEPA · page 19
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Consumers, Merchants, Corporates,
and Public Administrations
Form
at
Fle
xib
ility
Account
Fle
xib
ility
Imm
edia
te
Fin
ancia
l
Benefits
Realizing the Opportunity – Minimizing the Efforts
Tra
nsaction
Serv
ices
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Payment Services Directive
Requirements &Timelines
Business rules,standards & policies
The SEPA Initiative
1 2 3
Form
at
Flexibility
Account
Flexibility
4
Immediate
Financial
Benefits
Transaction
Services
1. Immediate Financial Benefits to Corporates
� Elimination of the EUR 50,000 threshold
(EU pricing Regulation on X-Border
Flows) on accounts in the Euro-Zone
� All SEPA compliant non-urgent debits
and credits priced at local ACH levels –
irrespective of:
– Transaction amount
SEPA · page 20The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Consumers, Merchants, Corporates, and Public Administrations
Form
at
Flexibility
Account
Flexibility
Immediate
Financial
Benefits
Realizing the Opportunity – Minimizing the Efforts
Transaction
Services
– Transaction amount
– Format
– Access channel
Pricing Strategy providing tangible savings from Day 1
2. Format FlexibilityMinimizing Corporate IT Investments
� EDIFACT, IDOC and CSV can be used to
remit SEPA transactions:
– New format descriptions incl. SEPA data
elements
� Conversion services planned for key local
x-border formats
� XML Format Support:
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Payment Services Directive
Requirements &Timelines
Business rules,standards & policies
The SEPA Initiative
1 2 3
Form
at
Flexibility
Account
Flexibility
4
Immediate
Financial
Benefits
Transaction
Services
SEPA · page 21
� XML Format Support:
– SEPA XML Format description available
– Global XML Format for Non-SEPA
transactions
• No obligation to invest in XML to benefit from SEPA
• “Become SEPA compliant without even noticing it”
• Minimizing the short term changes and investments for corporates
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Consumers, Merchants, Corporates, and Public Administrations
Form
at
Flexibility
Account
Flexibility
Immediate
Financial
Benefits
Realizing the Opportunity – Minimizing the Efforts
Transaction
Services
3. Account FlexibilityNo need for additional or centralized SEPA accounts
� Initiation of SEPA transactions from
accounts kept at all Deutsche Bank
branches in the Eurozone and the UK
� No need to open new accounts for SEPA
in addition to existing accounts for non-
SEPA transactions (e.g. Checks) – All
transactions processed from the same
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Payment Services Directive
Requirements &Timelines
Business rules,standards & policies
The SEPA Initiative
1 2 3
Form
at
Flexibility
Account
Flexibility
4
Immediate
Financial
Benefits
Transaction
Services
SEPA · page 22
transactions processed from the same
accounts
� Major differentiator from other banking
offers
Minimizing Corporate Efforts and
Insulating from Change
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Consumers, Merchants, Corporates, and Public Administrations
Form
at
Flexibility
Account
Flexibility
Immediate
Financial
Benefits
Realizing the Opportunity – Minimizing the Efforts
Transaction
Services
4. Value-Added Transaction ServicesFlexibility to support the client migration
� Deutsche Bank will provide a range of
value-added services to insulate clients
and realize the benefits of SEPA:
� Population of missing receiver’s BIC
(clients only need to send IBAN – Deutsche
Bank will derive and populate the
corresponding BIC)
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Payment Services Directive
Requirements &Timelines
Business rules,standards & policies
The SEPA Initiative
1 2 3
Form
at
Flexibility
Account
Flexibility
4
Immediate
Financial
Benefits
Transaction
Services
SEPA · page 23
Value-Added Transaction Processing
Solutions to Ease the Migration to SEPA
corresponding BIC)
� Population of sender specific data (sender
IBAN/ Originator ID / Creditor ID)
� Execution in Legacy format if beneficiary
bank is not “SEPA Reachable”
The E
uro
pean
Central Bank
The E
uro
pean
Paym
ents
Council
The E
uro
pean
Com
mis
sio
n
Consumers, Merchants, Corporates, and Public Administrations
Form
at
Flexibility
Account
Flexibility
Immediate
Financial
Benefits
Realizing the Opportunity – Minimizing the Efforts
Transaction
Services
Comments and Questions
SEPA · page 24
The information contained herein does not constitute and shall not be construed to constitute investment, tax, or legal advice
by Deutsche Bank AG or any of its affiliates, including Deutsche Bank Trust Company Americas nor its affiliates (collectively
"Deutsche Bank"), nor shall this presentation or the content herein be construed as advice, an offer or a solicitation of any
nature whatsoever nor is this article or its contents intended to be relied upon by any person. Individuals should consult with
their legal advisor regarding their particular situation. Deutsche Bank is providing this article strictly for information purposes
and makes no representation as to the accuracy, completeness, or timeliness of such information. Deutsche Bank shall not
be held liable for the authentication of or compliance with the information contained herein nor does Deutsche Bank assume
any obligation to update any such information. The views and opinions expressed herein or in any referenced document do
not necessarily state or reflect those of Deutsche Bank or any of its employees, officers or affiliates. No part of this article
may be copied or reproduced in any way without the prior written consent of Deutsche Bank.