SunGard and Sentenial Identify Ten IT Trends Created by the Approaching SEPA Deadline
June 26, 2012 — London
With the legally-binding SEPA (Single Euro Payments Area) implementation deadline now set as February 1, 2014, SunGard and Sentenial have identified ten IT trends that can help corporate treasurers understand the impact of SEPA and how a comprehensive solution can help them reduce banking fees, lower processing costs, and increase automation.
“We expect to see rapid adoption of SEPA among large, pan-European corporations. Adopting consolidated credit transfers and direct debit schemes across the eurozone can help pan-European corporations realize cost savings. With the legally-binding implementation deadline set, large corporations need to get budgets in place and start projects now in order to have sufficient time to address any unforeseen issues,” said Andrew Owens, senior vice president of enterprise payments at SunGard’s AvantGard business unit.
The ten IT trends created by the SEPA deadline of February 1, 2014, are:
1. The legally-binding deadline is forcing corporations with eurozone operations to act now, with the realization that an inability to collect monies from customers across the eurozone may threaten future revenue and negatively impact customer relationships.
2. Few corporations currently have mandate management systems that can verify whether a valid debit agreement is in place between the customer and corporation, a key SEPA requirement.
3. The adoption of SEPA schemes for direct debits could be an unexpectedly large project for many corporations due to the many variables involved with implementing and integrating a SEPA solution with a variety of back-office accounting and CRM systems.
4. Some corporations have not adequately budgeted for SEPA projects due to a lack of understanding about the complexity of implementing a solution. As a result, these corporations may be challenged to complete their projects by the approaching deadline.
5. Migrating existing customer records to the IBAN standard and maintaining consistency in CRM systems for both back office and customer-facing activities will be challenging due to the sheer number of records and the need to keep systems integrated.
6. With their massive CRM and ERP databases, large creditors could be particularly challenged to migrate and maintain SEPA-compliant mandate information.
7. Treasurers want solutions that manage all aspects of SEPA mandates, not only to check, update and delete mandates but also to supply mandate management data every time they want to collect.
8. Corporations are starting to realize that SEPA can make it easier to do business across the eurozone by simplifying and consolidating collections and payments processes.
9. Relative to current processes spread across multiple countries, a single direct debits scheme can help decrease IT costs by requiring only one solution instance, one infrastructure, and fewer support resources.
10. Processing euro transactions through a small number of cash management banks can help provide better cash management, while the use of standard ISO 20022 messages can simplify automated reconciliation.
To help corporate treasurers address these trends, SunGard has added SEPA direct debit capabilities to the AvantGard Trax payments solution. This new SEPA capability was developed in cooperation with Sentenial, a specialist provider of SEPA direct debit solutions for banks and corporates across Europe. It adds to existing SEPA credit transfers functionality and will help corporations meet the legally-binding SEPA deadline of February 1, 2014. The new functionality can help centralize direct debit and payment processes across the eurozone, which can help reduce banking fees, lower processing costs, and increase automation.
“Banks, businesses, and public authorities will have to invest heavily between 2012 and 2014 to upgrade software, revise internal procedures and migrate both customers and suppliers from national payment schemes to SEPA,” said Leo Lipis, associate analyst at CEB TowerGroup. “Corporate treasurers have long desired a pan-European standard for corporate-to-bank communication, and providers have responded by offering solutions that meet this new business need.”
Sean Fitzgerald, chief executive officer, Sentenial, said, “The move to combine SunGard’s AvantGard with Sentenial’s award-winning Origix Corporate is reflective of the increased industry demand for solutions that completely address the SEPA end-date challenge.”
Sentenial is a specialist provider of SEPA solutions for banks and corporates across Europe, currently working with a number of strategic partners to deliver an exceptional SEPA Direct Debit solution. With recognised expertise and a comprehensive SEPA offering, Sentenial is the trusted choice of leading European banks and corporate customers. Sentenial’s award-winning solutions remove the complexity of the new Direct Debit Schemes - making SEPA simple. For more information, visit www.sentenial.com.
About SunGard’s AvantGard
The AvantGard solution suite includes credit risk modeling, collections management, treasury risk analysis, cash management, payments system integration, and payments execution delivered directly to corporations or via banking partners. AvantGard solutions help consolidate data from multiple in-house systems, drive workflow and provide connectivity to a broad range of trading partners including banks, SWIFT, credit data providers, FX platforms, money markets, and market data. The technology is supported by a full range of services, including managed cloud services, treasury operations management, SWIFT administration, managed bank connectivity, bank on-boarding, and vendor enrollment, and is delivered by a team of domain experts. For more information, visit www.sungard.com/avantgard.
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