SEPA Migration Report – Prevent Liquidity Bottlenecks
SEPA Migration Report: EZB warns of waiting too long before changing to the new SEPA payment system.
Pforzheim, 5th November 2013 – In its new SEPA migration report, the EZB warns of waiting too long before changing to the new SEPA payment system. As reported in the press, the rate of change to the new European standard has been sluggish up until now. Many companies plan to adapt their systems in the coming months, whilst others will wait until the last minute. However, this means that the risk of technical problems and liquidity bottlenecks will grow – possibly with negative effects on payment traffic.
Where exactly a company can expect problems and what should be done to avoid them is elucidated by Holger Stelz, expert for data management at Uniserv: “Correct recording of new bank data and the IT-related changeover measures cost time and money. As shown by a recent SAP report from Steria and Edgar, Dunn & Company*, the changeover for a small insurer for example, requires between 1,000 and 5,000 employee days. For larger companies with several company locations, the effort required increases rapidly to 25,000 employee days”
“As well as the personnel effort, a challenge is presented by the actual acquisition of bank data which is valid for the future. New customer data arrives in databanks in different ways, e.g., when a customer fills out a form in the internet, or when it is supplied by outside representatives, call centres, or external service providers. But in many cases the data is incomplete or has errors. Writing, reading, hearing and typing mistakes can occur in datasets without being discovered. Even the smallest mistake in a number can lead to financial losses, because failed transfers not only incur extra fees - they also have a negative effect on the relationship to customers and suppliers.”
“In view of time pressure, personnel effort and susceptibility of the transition process itself, the plausibility check is an important aid towards being SEPA-ready. Companies can easily, comfortably and reliably check the bank data of their customers and partners for plausibility, thus avoiding extra fees for failed transactions as a result of inaccurate bank details. It avoids customer dissatisfaction - and anxious suppliers waiting for overdue payments. It’s also an effective instrument for avoiding attempts at fraud when a false registration is made, or consciously false bank details are supplied.”
The solution for the transitional phase: bank.International
bank.International processes bank data in original format (bank sorting code and account number), as well as in the new SEPA format. The particular advantage of bank.International is that it seamlessly integrates into the relevant application. This practical solution is available as an on-premises solution in your own system environment for single workplace processing, or as software as a service (SaaS) directly from the cloud - and converts bank account data easily into the SEPA formats BIC and IBAN. Further information, including the Steria report can be found here.
* Steria Report: “SEPA. Will European businesses be ready for the transformation?”