running out to meet the November 2009 deadline for the
implementation of Single Euro Payments Area (SEPA) direct debits,
outsourcing is an increasingly attractive option for many
banks.
This is clearly the thinking behind the decision by US
technology developer and service supplier Computer Sciences
Corporation (CSC) and Irish direct debit specialist Sentenial to
combine forces to offer European banks a turnkey SEPA direct debit
solution.
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“The combination of CSC and Sentenial’s capabilities in this
space provides organisations, currently facing enormous financial
pressures, with an option to achieve SEPA direct debit compliance
while maximising commercial benefits and minimising operational
disruption,” said Michael Arben, director of strategic initiatives
for CSC’s financial services sector in Europe, the Middle East and
Africa.
The outsourced offering combines CSC’s Payment Transaction
System (PTS) and Sentenial’s EuroDebit direct debit processing
application, both of which have already been implemented separately
by a number of major banks. These include Germany’s second-largest
bank, Commerzbank, which has deployed CSC’s solution and Dutch bank
ABN Amro which has deployed Sentenial’s solution.
According to CSC and Sentenial, the joint offering will provide
an end-to-end solution for the entire direct debit process – from
mandate creation to payment collection and exception
processing.
The offering will also enable a higher level of straight-through
processing for large volumes of direct debit payments which, the
partners claim, will improve service levels and reduce risks
associated with the transition to a new process.
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By GlobalDataIndicative of the time constraint facing banks, CSC and
Sentenial noted that the implementation of the solution is a
six-month process.
From a cost perspective, Paul Taylor, MD of UK payments
processor VocaLink’s European unit told EPI in a recent interview
that a bank implementing its own in-house SEPA direct debit
solution faced a total cost that could run into “tens of millions
of pounds”. VocaLink offers, Taylor added, a comprehensive,
outsourced SEPA solution to banks.
