- SEPA is still viewed as an opportunity with strong business benefits but 79% of Eurozone corporates have yet to action any SEPA direct debits plan for 2014 compliance
- Only 11% of non-bank respondents believe that SEPA DD can be delivered by 2014
- Real-time payments and mobile channels are the biggest focus areas
The fifth State of the European Payments Marketplace survey sponsored by CGI and Euro Banking Association (EBA), with over 420 participants from 47 countries, indicates a worrying lack of preparedness by corporates to the looming Single European Payments Area (SEPA) end date of 1 February 2014. Instead the results show that mobile and real-time payments top the priority list due to their highest growth potential. A vast 98% believe mobile commerce is currently a priority or will be in the next few years. The results clearly demonstrate the growing importance of mobile commerce in delivering easy to access services.
The largest payments survey of its kind, conducted by the Financial Services Club highlights that 79% of Eurozone corporates are not ready for the SEPA end date, with 57% still in the planning phase. However, according to 68% of respondents, SEPA is still viewed as an opportunity with strong business benefits.
“The lack of SEPA readiness will require refreshing approaches from banks, corporates and service providers as the clock is ticking. Working with our clients we have seen significant business benefits that can be achieved through complying with the legislation but time is running out for those who have yet to focus on SEPA,” said Jerry Norton, Head of Strategy, Financial Services at CGI, “Looking back at the results from 2012, we saw the beginning of conversations around the need for real time payments in the UK, Sweden & Poland. Over the last 12 months, this has gained significant momentum across Europe and mobile commerce is now reinforcing the need for real-time payments and delivering easy access for banking customers.”
“In 2012, Europe’s markets continued to be challenged by the Eurozone’s issues but we are still seeing strong support for SEPA. Possibly the lack of preparedness is around a greater enthusiasm for a broader real-time payments service and maybe a perceived lack of regulatory enforcement around SEPA,” said Chris Skinner, CEO at the FS Club. “This year we have continued our analysis of the differences between banks and their corporate clients, and it’s clear corporates need to play some serious catch-up.”
CGI works with 23 of the top 25 banks in the Americas and 16 of the top 25 in Europe. It helps Banks and Corporates with all aspects of payments modernisation, including mobile banking through its partnership with Monitise. CGI SEPA Services provides an end to end solution for Corporates to meet the regulatory requirement due 1st February 2014.
Full results of the survey are available by clicking here or you can pick up a copy of the report by visiting CGI at EBAday in Berlin from 21-22 May.
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 69,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as a wide range of proprietary solutions. With annualized revenue in excess of C$10 billion and an order backlog exceeding C$18 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.
About the Financial Services Club
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Based in London, with groups in the UK, Ireland, Central and Eastern Europe, the club meets fifty times per year and the blue chip speaker list is designed to incorporate all aspects of the industry, from practitioners, to legislators and futurists.
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