SWIFT Nordics Regional Conference 2013 - Payments - SEPA and ISO20022

SWIFT Nordics Regional

Conference 2013

Payments stream - SEPA and ISO 20022

for payments – where are we at?

Stockholm, 20 – 21 November 2013

SEPA Readiness

SWIFT Nordics Conference

Carsten Thaarup 20 November 2013

SEPA End Date Regulation Legal Impact

• Reachability throughout for euro countries

• No longer possible to require an account to be located in a specific country

• Amendment to Regulation 924/2009 ~ Same price for euro payments below and above EUR 50,000 31 March 2012

• Multilateral Interchange fees for cross-border direct debits not allowed 1 November 2012

• Request for derogation until 1 February 2016 of smaller credit and direct debit transactions in a member state, for use of IBAN in the domestic market, use of XML etc. 1 February 2013

• ISO 20022 XML to be used for file-based transactions to and from customers

• BIC no longer required for national euro payments

• Technical interoperability between Payment Service Providers ensured 1 February 2014

• For euro based countries: BIC no longer required for cross-border euro payments 1 February 2016

• For non-euro based countries: BIC no longer required for cross-border euro payments

• Reachability for even non-euro based countries 31 October 2016

• National Direct Debit Interchange Fees abolished 1 February 2017

3 •

Carsten Thaarup • SEPA Readiness • 20 November 2013

SEPA End – Date Regulation – SCT migration September 2013

4 •

341.1 mio

56.26 per cent


SEPA End – Date Regulation – SDD migration September 2013

5 •

43.5 mio

6.84 per cent


SEPA End – Date Regulation – SDD migration September 2013

6 •


Fragmentation Emerging within SEPA

• SCT

• Belgium – Structured Remittance Information

• France – SCT Reversals

• Finland – 2 AOS’s:

• Payment Date

• Bundling of payments

• Greece – National Character Set

• Italy – SCT Routing

• Slovakia – Payment reference

• SDD Core as well as for SDD B2B

• Belgium – Structured Remittance Information

• Greece – five AOS’s

• Mandate channelled back from the Creditor to the Debtor Bank, Mandates to be

received in Debtor Bank prior to first collection, Recurrent collections received in

Debtor Banks D-1 instead of D-2 as all validations have already taken place

earlier, National Character Set

• Italy - Compliant Electronic Database Alignment

7 •


Thank you!

Carsten Thaarup

Payments Infrastructure

[email protected]

ISO 20022 – a snapshot

Ellen Halden

DNB Bank ASA

ISO 20022 XML – around the world

ISO 20022 intiatives

* wherefrom 7 initiatives are cross-

regional initiatives which are as

such counted more than once

Advantages

• International standard, common governance principles

• Agreed methodology and business consept

• A common repository

• Business rationale - about the «soft» things:

• Interoperability, standardized approach for the customers

• Collaborative approach, open standard

• The network effect

Challenges

• Low awareness in some sectors

• Need better business understanding

• Creates mini ISO 20022’s

• Different variants – like EPC Rulebooks

• Loads of information

The NPA vision NPA Task Force 2013-11-20/21

The NPA vision

OUR VISION IS THAT BY 2020

THE NORDIC REGION WILL HAVE

DEVELOPED INTO A

SEPA-LIKE COMMON PAYMENTS MARKET

(REGARDLESS OF THE CURRENCY)

WHICH SERVES AS EFFICIENTLY

AS THE DOMESTIC MARKETS DO TODAY

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The NPA vision

Globalisation/Regionalisation

E-commerce - growing rapidly

Intra Nordic Trade is > 20% of total export

“The enlightened consumer”.

e-Commerce/e-Services

Simplicity.

24/7/365 access.

Mobility.

Increased speed.

Integration in information technology solutions

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The NPA vision

Standards (ISO20022)

Mandatory use within SEPA.

Globally acceptance as the de facto standard for financial messaging

Regulatory impact

Standardisation of payment transactions and infrastructures.

Minimum standard for security for internet payments.

Increase commercial and industrial competition.

Identification and elimination of barriers for cross border cooperation in EU internal market.

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The NPA vision

There is a strong support for the NPA vision and idea

There is a strong agreement on that Banks need to act rather than react

There are different opinions on how to meet the changes and challenges that NPA White Paper 2.0 describes

The NPA Steering Group recommends that the Nordic Bankers Associations facilitate a “platform” on which Nordic Banks can

Work together to identify activities and means to meet the changes and challenges

When possible cooperate on realising these activities and developing these means

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The NPA vision

THANK YOU FOR YOUR ATTENTION!

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Contact details:

Kirstine Nilsson [email protected]

+46 703 746 734

SWIFT Nordics Regional Conference 2013 - Payments - SEPA and ISO20022

Economy & Finance

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