Two-thirds of people in the banking industry
consider a single payments market either critical or very important
for the future of Europe, a survey by the UK’s Financial Services
Club and business and technology services provider Logica
found.
The survey considered the progress of the
implementation of the Payment Services Directive (PSD) and SEPA,
receiving replies from 360 bankers, consultants and professionals
in the technology space worldwide.
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The key findings included:
50% of respondents consider PSD successful
(15% more than a year-ago)
30% considered SEPA a success, although 70% of
banks believe that SEPA will become a reality by 2017.
The confidence in SEPA among banks has risen
marginally from a year ago, when 68% thought that SEPA would be
realised by 2017.
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By GlobalDataChris Skinner, founder of the Financial
Services Club, said:
“This is the third year we have run our survey
and what is interesting is to see the shift in viewpoint of
European payments. In 2009 respondents’ concerns were primarily
about the implementation of the PSD. In 2010, there was
disillusionment with the whole development of the PSD and
SEPA.”
He added: “Now it’s clear that European payments
professionals are gradually accepting and adapting to the new ways
of processing payments. However new challenges are emerging around
corporate payments and liquidity risk.”
Concern over liquidity risk
A key findings of the report is the concern
over liquidity and the risk involved:
The majority of banks (73%) said they would
know their financial exposure if a liquidity issue were to arise,
but only 39% said they were able to check their exposure thanks to
right technology and less than a fifth said they can check their
exposure in real-time.
Logica’s global consulting practice leader for
payments, Nick Ford, said:
“New regulations require analysis and
allocation of liquidity and its risk management to the lines of
business that generate liquidity demand. It is therefore essential
that liquidity pricing is built into every part of a banks’
business plan including governance, strategy, capital and liquidity
management. The combination of increasing regulation and a lack of
right automation tools in many banks, makes it easy to see why this
is an area of concern for those surveyed.”
