When it comes to the future, European banks
hold strong and divergent views on key issues ranging from SEPA to
mobile banking, a survey of 23 major banks undertaken by US banking
software and service vendor Fundtech reveals.
hold strong and divergent views on key issues ranging from SEPA to
mobile banking, a survey of 23 major banks undertaken by US banking
software and service vendor Fundtech reveals.
Undoubtedly the biggest change facing European
banks is SEPA and its negative impact on profitability, which two
thirds of respondents believe will be considerable.
banks is SEPA and its negative impact on profitability, which two
thirds of respondents believe will be considerable.
Indeed, 44 percent of banks predicted it would
take longer than five years to replace revenue lost because of SEPA
pricing mandates, while 13 percent believed they would never
recover the lost revenue.
take longer than five years to replace revenue lost because of SEPA
pricing mandates, while 13 percent believed they would never
recover the lost revenue.
Opinions also differed on the November 2009
deadline for the introduction of SEPA direct debits.
deadline for the introduction of SEPA direct debits.
Though 83 percent of respondents have already
built or bought their solution for SEPA direct debits, 41 percent
predicted its launch will be delayed. Only 5 percent believe there
is no likelihood of a delay.
built or bought their solution for SEPA direct debits, 41 percent
predicted its launch will be delayed. Only 5 percent believe there
is no likelihood of a delay.
Unsurprisingly, banks are on the hunt for
alternative revenue sources, one of which generating considerable
optimism is electronic invoice presentment and payments
(EIPP).
alternative revenue sources, one of which generating considerable
optimism is electronic invoice presentment and payments
(EIPP).
Of the bankers surveyed by Fundtech, 61 percent
viewed EIPP as both a revenue and cost-saving opportunity and saw
significant growth in the adoption of EIPP over the next three
years.
viewed EIPP as both a revenue and cost-saving opportunity and saw
significant growth in the adoption of EIPP over the next three
years.
Indicative of the potential of EIPP, 38 percent
of respondents anticipated that between a quarter and a half of
their customers will adopt the EIPP service, while 15 percent
believe the adoption rate will be over 50 percent.
of respondents anticipated that between a quarter and a half of
their customers will adopt the EIPP service, while 15 percent
believe the adoption rate will be over 50 percent.
Participants in Fundtech’s survey were also
requested to comment of the potential of mobile banking. The
over-riding view was that it is not a short-term solution to
replacing revenue anticipated to be lost in the wake of SEPA’s
introduction.
requested to comment of the potential of mobile banking. The
over-riding view was that it is not a short-term solution to
replacing revenue anticipated to be lost in the wake of SEPA’s
introduction.
At best 34 percent believe mobile banking will
take three to five years to be a meaningful contributor to their
company’s bottom line. A less optimistic 38 percent believe it will
take longer than five years, while 22 percent forecast it will
never be a meaningful contributor.
take three to five years to be a meaningful contributor to their
company’s bottom line. A less optimistic 38 percent believe it will
take longer than five years, while 22 percent forecast it will
never be a meaningful contributor.
Go deeper with GlobalData
