SEPA
Nationale Bank van België
Banque nationale de Belgique
Jan Vermeulen
Axelle Waterkeyn
Agenda
► What is SEPA ?
● Objectives
● Benefits of SEPA
● Payment instruments
● Key players
● Legal framework
► SEPA in Belgium
● National organisation
● Status
● Lessons learnt from a big biller
► Next steps
2 / 33
SEPA information - 2012
What is SEPA?
3 / 33
SEPA information - 2012
Objectives
A SINGLE EURO PAYMENTS AREA...
"...becomes a reality, when individuals and corporations are able to
make cashless payments throughout the euro area from a single
payment account anywhere in the euro area using a single set of
payment instruments as easily, efficiently and safely as they can
make them today at the national level. "
4th Progress report of the ECB on SEPA - February 2006
4 / 33
SEPA information - 2012
Objectives
Before SEPA
SEPA
•
diversity in payment
instruments
•
3 standardised payment
instruments
•
national legislation
•
European legislation and
harmonised national laws
•
fragmentation of infrastructure
•
European infrastructures
•
high cost and bad service level
for payments between
European countries
•
no difference in price and
service level between national
and cross-border payments
•
little competition between
banks and other service
providers on a European scale
•
competition on a European
scale
 LISBON agenda: a more efficient and competitive Europe
5 / 33
SEPA information - 2012
Objectives
EFTA
EU27
Eurozone
 € payments within 32 countries*
 99 % of all our non-cash payments are affected
 impact SEPA > introduction € cash
* 32 countries: EU + Norway, Liechtenstein, Iceland, Switzerland & Monaco
6 / 33
SEPA information - 2012
Benefits of SEPA
Payment
system
PE-ACH
7 / 33
SEPA information - 2012
Benefits of SEPA
► Consumer and merchants
● Larger offer of payment services
● Choice of banks
● Cross border direct debit
● European wide use of cards
8 / 33
SEPA information - 2012
Benefits of SEPA
► Corporates
● Decrease number of bank-relations/bank accounts
● Simplification of liquidity management and
payment modules



Standardisation of banking formats, f. ex. incoming and
outgoing payments have same format
further automatisation : higher STP
possibility of development of centralized service centers
for payments (incoming/outgoing)
● e-invoicing/e-reconciliatian could be organised on
the SEPA level
9 / 33
SEPA information - 2012
Payment instruments
► SEPA Credit Transfer - SCT
► SEPA Direct Debit - SDD
► SEPA for Cards
10 / 33
SEPA information - 2012
Payment instruments
01/2008
02/2014
11/2009
SEPA credit
transfer
Public authorities as first movers
Followed by big billers
National
CT
SEPA
Direct
Debit
First big biller migrates
end 11/2011
Technical, contractual
and business
standards
11 / 33
STOP!
National
DD
SEPA
cards
SEPA information - 2012
Key players
European
Commission
EPC
European Payments
Council
Eurosystem
12 / 33
SEPA information - 2012
Legal framework (1)
► PSD: Payment Services Directive 2007/64/EC
adapted to the Belgian law (law on Payment
Services 10-12-2009 published15-01-2010)
Payment institutions
Transparancy and information
Rights and obligations
+
13 / 33
Execution time, refund, full amount to be
transferred
SEPA information - 2012
Legal framework (2)
► 'End-date' Regulation: Regulation 260/2012
establishing technical and business
requirements for credit transfers and direct
debits in euros
"Credit transfers shall be carried out in
accordance with the requirements ... by
1 February 2014"
"Direct debits shall be carried out in
accordance with the requirements ... by
1 February 2014"
14 / 33
SEPA information - 2012
SEPA in Belgium
15 / 33
SEPA information - 2012
National organisation of SEPA
Steering
Committee on the
Future of
Payment means
16 / 33
Program
Management
Office
SEPA Forum
SEPA information - 2012
National organisation of SEPA
► SEPA Forum: Banks
SEPA-FORUM
Steering
Committee on
the Future of
Payment Means
BOARD
PAYSYS COMMITTEE
PROGRAM MANAGEMENT
OFFICE (PMO)
CO-ORDINATION
COMMITTEE
WG
COMMUNICATION
WG CREDIT
TRANSFERS
WG DIRECT DEBIT
Belgian Migration Plan (version 4.0)
www.sepabelgium.be
WG CARDS
WG
CHEQUES
WG BILLS OF
EXCHANGE
17 / 33
WG
INFRASTRUCTURE
WG C2B & B2C
STANDARDS
SEPA information - 2012
National organisation of SEPA
► Steering Committee on the Future of Payment
Means: Society
Steering Committee on the future
of payment means
PROGRAM MANAGEMENT
OFFICE (PMO)
SEPA-FORUM
SEPA Working group
sub-working
group
Consumers
sub-working
group
Corporates
sub-working
group Public
Authorities
subgroup
subgroup
SEPA Credit
transfer
SEPA Direct debit
SEPA Steering
Committee Federal
Government
Working group SEPA
co-ordinators
Progress Reports : www.nbb.be/sepa/en
18 / 33
SEPA information - 2012
National organisation of SEPA
►National Bank of Belgium
● "Maatschappelijk overleg Betaalverkeer (MoB)"
● "Débat sociétal sur les moyens de paiement"
● "Societal debate on the future of payment means"

SEPA working groups
 Public authorities
 Consumers
 Businesses
19 / 33
SEPA information - 2012
State of play - SCT (2008 - july 2012)
Virements exécutés au format SEPA
(% du nombre total des virements interbancaires)
65%
60%
58.67%
58.03%
CEC
52.30%
55%
47.66%
Euro area CSMs
50%
44.71%
45%
45.09%
38.83%
40%
33.33%
35%
29.57%
27.16%
30%
25%
20%
15%
10%
20.50%
16.07% 13.90%
1.91%
21.07%
23.71%
16.86%
6.20%
5%
0%
1.80%
Sources: Banque centrale européenne (BCE) et Centre d’échange et de compensation (CEC).
20 / 33
SEPA information - 2012
State of play - SDD (july 2011 - april 2012)
Opérations de domiciliations exécutées au format SEPA
100
98.17%
97.69% 97.34% 97.56%
96.70%
87.08%
90
85.79%
80.52%
84.71%
87.56%
83.65% 84.04%
86.55%
80
% Volumes
70
60
50
40
30
18.98%
20
10
0
12.43% 13.61%
1.38%
1.74%
0.45% 0.56%
Juil-11 Août-11
2.10%
11.89%
15.66%
15.32% 12.86%
2.65%
0.56%
0.51% 0.65%
Sep-11 Oct-11 Nov-11
% SDD CORE
21 / 33
1.93%
14.72%
0.51%
0.49%
0.60%
0.58%
0.55%
0.69%
0.65%
0.59%
Déc-11
Jan-12
Fév-12
Mar-12
Avr-12
Mai-12
Juin-12
Juil-12
% SDD B2B
% opérations de domiciliation nationale (DOM80)
SEPA information - 2012
State of play - Cards
Belgian scheme
22 / 33
will outlive SEPA
SEPA information - 2012
State of play - Communication
● Febelfin




interbank workshops
www.sepabelgium.be
leaflets
specific communication on SEPA issues
● NBB info sessions


CEC
Working groups
● SEPA info days
● Each bank's own communication strategy towards clients
23 / 33
SEPA information - 2012
Lessons learnt from a big biller:
Répartition du total des mandats de domiciliation sur le total des créanciers enregistrés en
Belgique (en %)
Mandats
100%
100%
90%
80%
% Mandats
70%
60%
50%
40%
30%
20%
10%
0%
Nombre d'entreprises
24 / 33
SEPA information - 2012
Lessons learnt from a big biller :
SDD is new
► New business rules
► New master data mandate management
● Create, modify, delete, scanning, archiving
● R-Transactions : impact on process, data,…
► New file format
► New interfaces with bank e.g. upgrade Isabel
► New documents : Letters, footers,…
► New reports to create
► New hardware / software e.g. scanner, …
25 / 33
SEPA information - 2012
Lessons learnt from a big biller :
Time and information
► A Program structure with a budget and
►
►
►
►
►
►
►
26 / 33
dedicated ressources
A Planning (Time not to underestimate)
To start it as fast as possible, It takes time
To choose your bank(s) partners as quickly as
possible
To create awareness internal & external
To train everybody
Tests Tests Tests and Tests
To inform your customer
SEPA information - 2012
Next steps
27 / 33
SEPA information - 2012
Next steps
► Collect information from you on your planning
► Organise and structure the communication
28 / 33
SEPA information - 2012
Next steps : migration SCT
Migration done SCT
2008
2009
2010
2011
Q1
28/01
Start
SEPA
April
aangifte
op
met
aanvraag
brochure
29 / 33
Q4
jan feb
aanslag
met
SEPAformulier
maa
Q2
Q3
Q4
31/12
stop
verzending
stop
oude
verwerking
formulieren
oude
formulieren
SEPA information - 2012
Next steps: migration SDD
2009
30 / 33
2010
Novembre
Avril
démarrage
SDD
PSD entre en
vigueur
2011
2012
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2013
SEPA information - 2012
European developments
► SDD Fixed amount scheme
● EPC scheme
● Code of conduct ?
► European Commission Green Paper
● "Towards an integrated European market for card, internet
and mobile payments."
http://ec.europa.eu/internal_market/payments/cim/index_en.htm
31 / 33
SEPA information - 2012
Concluding remarks
► SEPA: major change
► SEPA: irreversible evolution
► Self-regulation versus
regulation by public
authorities
► Still major challenges:
● take off of direct debit
● European cards schemes
32 / 33
SEPA information - 2012
Information and Contacts
► your bank ...
► Febelfin
●
http:/www.sepabelgium.be
► NBB
●
●
●
●
www.nbb.be/sepa/
Jan Vermeulen tel 02 221 23 12
Axelle Waterkeyn tel 02 221 49 80
cashlesspayments@nbb.be
► European Commission
●
http://ec.europa.eu/internal_market/payments/sepa/index_en.htm
► EPC
●
33 / 33
www.europeanpaymentscouncil.eu/
SEPA information - 2012