Saturday, November 22, 2008
While financial institutions’ IT budgets are under pressure given everything that has been happening in the global economy, there are some activities, based on compliance and regulation, that banks may not want to put off. SEPA is a case in point and banks are starting to address the challenge of building a business case for the migration of corporate customers that goes beyond core SEPA services.
Complementary services based on the schemes - Additional Optional Services (AOS) - offer banks the opportunity to develop greater benefits for their customers and prove the business case for corporate migration. AOS also enable banks to differentiate their SEPA offering and create a competitive advantage. Banks can maximise AOS as a chance to develop new sources of revenue, such as e-invoicing, integrated treasury propositions and supply chain tools.
While the much-speculated mini-SEPA, where customers are offered a particular service in their home country and another in the rest of the Eurozone, must be avoided, AOS should assist in making customer migration to SEPA both painless and seamless. For financial institutions to support these additional offerings and ensure a viable business case for their own SEPA implementation, cost-efficiencies must be put into the back-office. Banks must consolidate transactional volumes, industrialise payment production capabilities and provide harmonised access to products and services through a single strategic payments platform.
By focusing on their core SEPA platforms, banks can ensure they provide a strategic end-to-end solution, before looking to develop AOS. It is only when a solution is in place that goes beyond pure compliance and actually integrates SEPA into the end-to-end process that banks will be in a strong position to build the necessary AOS.
AOS will undoubtedly play an integral role in the future payments market as they form an increasingly strategic element of SEPA. The provision of complementary services will not only give banks new sources of revenue and a return-on-investment post SEPA-implementation, but it will also tackle the current challenge of proving SEPA’s worth to corporate customers
Product Marketing Manager - Wholesale Payments