Informatica and Atos Origin sponsored research indicates that innovation is key to off-setting compliance costs.
An IDC report into SEPA compliance efforts across Europe has found that ‘SEPA fatigue’ is starting to emerge across the financial services community, leading to increasing risk of procrastination. The report, sponsored by Informatica (NASDAQ: INFA) and Atos Origin, warns banks that unless they are innovative and seek to provide value added services to customers that leverage the SEPA infrastructure, they will fail to generate return on their investment.
"Banks that have implemented payment shared-service centers and built scale stand most to gain from SEPA and payment consolidation in Europe. Smaller institutions need to focus on quality of service and enhanced customer experience" — Rachel Hunt, European research manager, Financial Insights.
The Single Euro Payment Area (SEPA) went live in January this year, with most notably the introduction of SEPA Credit Transfers (SCTs). As we see the start of SEPA fatigue and a growing risk of procrastination, this white paper highlights the risk of banks resting on their laurels too soon.
In reality, too many banks did as little as possible, as late as possible. While the largest transaction banks are benefiting from new sourcing opportunities and smaller institutions look to outsource their crossborder payments, it is the medium-sized banks that stand to lose most. These now urgently need to review their payment strategy and its impact on the infrastructure.
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