SEPA og Nordic Payments Area

Transcription

1 SEPA og Nordic Payments Area Finans Norge s Betalingsformidlingskonferanse Thon Hotel, Lillestrøm, oktober 2013 By Dag-Inge Flatraaker, General Manager, Group Payments Infrastructure, DNB Bank

2 A «Tsunami» of new EU regulations SEPA End date PSD 2 (including «acess to account» New SEPA governance MIF-regulation New Security requirements from ECB and the regulators (SeCurePay) 2

3 From different rules and standards To common rules and standards

4 : EU introduces «price regulation» - SEPA Vision and kind of selfregulation created 2008 : 8000 banks in Europe agreed «SEPA Rulebooks» 2009 : New legal basis Payment Service Directive 2012 : SEPA End date Legal requirements and mandatory use of SEPA Standards Removal of national formats in the eurosone The NPA vision

5 SEPA deadlines Migration status Remaining challenges 5

6 On 1 February 2014 all retail credit transfers and direct debits in the euro area need to fulfil SEPA requirements (including ISO XML) - migration to SCT and SDD 6

7 EU/EEA member states with other currencies than euro - deadline of 31 October

8 Derogations and niche products with specific characteristics - longer transition phase can be applicable in some euro countries ending 1 Feb

9 IBAN-only 1 February 2014 no BIC to be required for national payments in euro area 9

10 IBAN-only 1 February 2016 no BIC required for crossborder payments in euro area 10

11 SEPA End Date other components Payment files from customer have to be received by the bank according to the SEPA standard including the use of ISO XML. Conversion between legacy formats and ISO is OK but the solution have to be offered as a separate service. IBAN (International Bank Account Number) becomes the standard account number as from February 2014 (In many countries they will accept BBAN until 2016) Beneficiaries not allowed to demand that the sender has an account in one specific country Extra protection and requirements to the SEPA Direct debit solution in banks gives more protection for the consumers * 11

12 Migration Status SEPA

13 Status in the eurosone will banks and their customers reach the deadline? 100% % 35 % % share of SEPA Credit Transfer % share of SEPA Direct Debit 7% (source: ECB) 13

14 All end-users urged to accelerate migration efforts - there is no Plan B! All Member States to communicate on SEPA migration before summer 14

15 Assisting end-users (focus on SMEs and local authorities) to meet the migration enddate 15

16 The future SEPA governance structure 16

17 Other stakeholders Other stakeholders Other stakeholders National Governments And Central banks Political layer The new Euro Retail Payments Board (former SEPA Council ) ECB (and EC) + Supply (Banks / PIs) and Demand (Users) Owns the SEPA project, Decides on priorities and Arbitrates disagreements between stakeholders Task Forces. National SEPA Committees Multistakeholder realisation layer Stakeholders*: structure 1 established by and reporting to the Euro retail Payments Board *Banks are one stakeholder in the multistakeholder SEPA governance structure E-payment² Mobile Payment² Cards² Cash² SCT, SDD Core, SDD B2B² National Stakeholder Associations Stakeholders positioning and organising layer European Interbank Space Current EPC to be reorganised 1. Forms industry position in multi-stakeholder structure and SEPA Council discussions, and towards public authorities 2.Provides (technical) support to the multistakeholder structure upon request Scheme Ownership, Management and Administration for SEPA Schemes (SCT, SDD Core, SDD B2B...) to be further discussed 1.. The NPA vision 17

18 Status SEPA governance ECB (and Commission) have now decided on a new SEPA Governance structure Level 1: Will create «The Euro Retail Payments Board» - will be owned and chaired by ECB (but Commission will most probably «stay behind & in controll» Level 2: Multi Stakeholder Groups will be tasked with preparing business rules, requirements for standards and adressing legal issues European associations must strenghten their representiveness (linking pin to who they represents also locally) 18

19 - EU regulation on MIF s - PSD 2 Payment Services Directive 19

20 PSD 2 & MIF Regulation potential implications Will open up for Access to accounts for third party service providers in payments (TPP s) Unclear situation when it comes to 1) legal situation between the bank and TPP, 2) who is paying for what (the bank is not allowed to discriminate between its own transactions and those of the TPP), 3) division of legal and commersial responsibility is unclear, If consumers gives away its banking authentication details to the TTP with the TTP obliged not to misuse the information, who will then be responsible if the TTP misuses the situation? Requiring all banks to hand out consumers credentials allowing the TPP to access the consumers accounts, check coverage and authenticate transactions on behalf of the consumer What impact will this have on BankID?. 20

21 PSD 2 & MIF Regulation The MIF Regulation regulates card interchange as follows : Max 0,2 % for Debit cards Max 0,3 % for Credit Cards Will also regulate surcharging surcharging in scheemes having regulated MIFs will not be allowed, other surgcharging will be capped based on actual costs beyond usage of cash. Honor all card rules will be limited to cards with similar MIF The regulation will enter into force 2 months after formal publication for cross border transactions and 2 years after for domestic transactions. 21

22 PSD 2 & MIF Regulation the expected process Negotiations going on between the EU Commission, The EU Council and EU Parliament. Planned agreement and decision before summer 2014, then to be published formerly in all respective languages Q3/Q and then 2 more years before entering in to force (2016/2017) However, high probability that decissions and process will be delayed (1 year?) due to re-election of Parliament early next year and shift of EU Presidency (Greece will take over the Presidency).. 22

23 Nordic Payment Area NPA 23

24 External changes Regulatory and Market Creates Compliance requirements and Adaptation cost 24 AML FATF ISO Global Standardisation SEPA Migration End date Feb 14th 2012 Globalisation of Business CPSS- IOSCO Payment Services Directives I & II New Technique Global Competition

25 The Nordic Payment Area Vision OUR VISION IS THAT BY 2020 THE NORDIC REGION WILL HAVE DEVELOPED INTO A SEPA-LIKE COMMON PAYMENTS MARKET (REGARDLESS OF THE CURRENCY) WHICH SERVES AS EFFICIENTLY AS THE DOMESTIC MARKETS DO TODAY

26 NPA idea Develop the Nordic region into a SEPA-like common payments market (regardless of the currency) to service as efficiently as the domestic markets do today. NPA is; - an approach for the Nordic region to agree and align the implementation of the SEPA standards and consolidated payment instruments. - Re-usage of investments already made for SEPA widen the Geographical area Enables each community and bank to plan the necessary implementations in a natural investment cycle instead of aiming to a simultaneous 'big bang'.

27 Consultation on White Paper 2.0 The questions asked: In general, do you share the vision of a Nordic Payments Area as presented in the White Paper 2.0 in chapter 1? Do you support the ideas of - Multi-currency infrastructure. - Structure of the clearing participation to provide full reach. - Domestic-like service to cover the region common scheme. - Harmonised data model and standards. Do you see that the NPA would improve possibilities to support important end user requirements in the Nordic region?

28 NPA Next Steps The Consultation shows that; There is a strong support for the NPA vision and idea There is an agreement on the assumptions on which NPA is based There is an agreement on that the changes and challenges described in NPA White Paper 2.0 will have a significant impact on the Nordic payment market There is a strong agreement on that Banks need to act rather than react There are different opinions on how to meet the changes and challenges that NPA White Paper 2.0 describes

29 NPA Next Steps 29 The Conclusion is that there is a need for a Next Step. The NPA Steering Group recommends that the Nordic Bankers Associations facilitate a platform on which Nordic Banks can - Work together to identify activities and means to meet the changes and challenges - When possible cooperate on realising these activities and developing these means The NPA Steering Group and Task Force is committed to support the Bankers Associations in setting up such platform.

30 Questions?? 30