By Arthur Brieske, Global Head of Innovation and Commercialization & Americas Regional Head of Product Technology Management, Global Transaction Banking,…
By Deutsche Bank |
Updated on October 14, 2013
X
Thank you for sharing!
Your article was successfully shared with the contacts you provided.
By Arthur Brieske, Global Head of Innovation and Commercialization & Americas Regional Head of Product Technology Management, Global Transaction Banking, Deutsche Bank, and Martin Runow, Head of Cash Management Corporates for the Americas, Global Transaction Banking, Deutsche Bank
On February 1, 2014, migration to the single euro payments area (SEPA) credit transfer (SCT) and SEPA direct debit (SDD) will become a reality. Rather than looking at this as an end-date, it should be viewed as the beginning of new and exciting centralization, automation and standardization opportunities for corporates. They will now have the opportunity to concentrate on the resulting benefits of SEPA compliance instead of focusing on looming deadlines and rising implementation costs.
The Benefits of SEPA
SEPA will enable corporates to move forward with a next-generation treasury/shared services platform. For example, the evolution of centralized payment factories can now be more readily complemented by centralized collection factories. Payments centralization will be much easier to achieve once SEPA is in place, because companies will be using exactly the same file format for payments across the SEPA zone and the fee structure will be the same—regardless of whether a payment is domestic or cross-border. With SEPA Direct Debits, for example, companies will no longer have to take account of the different processing times involved in clearing direct debits in individual European countries. A definite advantage of the SEPA file formats for payment/collection factories is that it includes an “on-behalf-of” field. Any corporate interested in further integration of treasury operations with shared-service centers (SSCs) should be taking advantage of SEPA.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing. Once you are an ALM digital member, you’ll receive:
Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices,
case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
Exclusive discounts on ALM and Treasury & Risk events.
Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!
Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
Exclusive discounts on ALM and Treasury & Risk events.
Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.