February 1st, 2014 is a day of great significance for banks and other organizations in the euro zone– it’s the deadline for single euro payments area (SEPA)-compliance, and it’s approaching fast. SEPA aims to create a single domestic market for euro payments through standardization and the development of common financial instruments and procedures. This will create a simplified, harmonized bank transfer system for the 32 SEPA countries, helping to reduce costs for all and improve the efficiency and speed of payments.
Hopefully, your organization is already well underway with compliance preparations – such as replacing current account numbers with the common format of International Bank Account Numbers (IBAN), identifying areas and processes that will be affected by SEPA, and implementing message format changes for payment instructions and reconciliations.
Axway can help
SEPA compliance requires updates of systems and applications used for payment and collection of funds. Axway can help you prepare for this requirement in the following ways:
- SEPA Credit Transfer (SCT) and SEPA Direct Debit (SDD)
By 1 February 2014, organizations must change their existing domestic SEPA-payment instruments for credit transfers and direct debits, and switch to an XML-based format and BIC/IBAN international account identifiers. The implementation of SDD and mandate management will impact organizations’ payment and sales-cycle processes and IT systems, but it doesn’t have to mean implementing entirely new payment systems. Using Axway transformation and information enrichment capabilities, you can minimize the impact of SEPA on your business. Axway solutions integrate seamlessly with your legacy payments applications, or any mandate management systems for SDD transformation, creating a complete solution on-premise or in the cloud.
- Corporations – Centralize payment flows around a SEPA-ready payment platform
Axway Financial Exchange provides corporations with a centralized exchange platform that makes payment applications independent of exchange issues, such as routing, conversion of domestic account numbers to BIC/IBAN, and conversion of various Rulebook formats used by banks. The mappings included in Axway Financial Exchange can be adapted to your bank processing specifications, helping you to achieve SEPA migration with minimum impact on your applications. Use the SEPA-compliance deadline as an opportunity to move to a centralized payment exchange platform with Axway Financial Exchange, and get better visibility and control of flows at the same time.
- Banks – Build new value-added services, standardize and update systems
Axway Financial Exchange gives you a SEPA-ready payment exchange platform that you can use to help your clients achieve SEPA compliance. You can extend transformation and enrichment capabilities to corporations seeking to outsource compliance requirements in order to mitigate risk and limit impact on their financial and treasury IT systems.
SEPA provides an opportunity for banks to not only develop new innovative services and broaden their cash management offering to customers, but to implement new payment and security standards and update systems.