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Is the Green Light for SEPA a Code Red for the Industry?

SEPA Pumps Up The Volume

Back in December 2010, the EC announced the deadlines (draft regulation) for full SEPA implementation. They proposed 12 months from the regulation approval date to adopt SCTs and 24 months for SDDs. Both these timeframes have now been replaced by concrete dates, so it is more than likely that the industry have to deal with end of January 2013 for SCT and end of January 2014 for SDD.

Are we ready?
That’s the question Capco put to top-level payments experts from major European banks, in a unique study we completed last year. (We looked as well at the industry’s responses to the EC Working Paper on SEPA Migration.)

Our work reveals the “burning platforms” of SEPA: End Date, Essential Requirements, Waiver for Niche Products and Scope. We also focused on the practical and operational impact of SEPA and on IT Systems, Intrabank Readiness, Communications and Awareness.

Simply put…many banks see the planned transition time as too short. When asked on their preferred deadline, banks are arguing for a longer implementation period – pushing for the end of 2014 for SCT and end of 2016 for SDD

What did the industry tell us?
We are looking at an industry that is simply not ready for 100% SEPA volumes across the board. There is skepticism about the likely benefits of migration and a huge communication and awareness building task ahead, especially in the retail sector.

What can be done to prepare?
Capco has identified five clear pathways to SEPA migration. They are detailed in our full report SEPA Pumps Up The Volume. We are confident you will find the report a fascinating insight into the reality behind the current SEPA hype. It also provides calm, clear and practical advice on what can be achieved, in an environment of highly accelerated timescales for 100% SEPA volumes.


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