Tue 18 - Thu 20 November 2008 - Frankfurt am Main, Exhibition Grounds, Hall 5.1
E.B.I.F. presents solutions for EU payment transactions
European economy could save up to €100 billion
As the world’s leading exporter, Germany stands to benefit most
Wiesbaden, 30 August 2006 – On the initiative of the EU Commission, Europe is to come one more step closer together on 1 January 2008. The next milestone towards common payment transactions in the euro zone comes in the form of uniform credit transfers, direct debit and EC cards. However, banks are still largely unprepared for these changes.
According to a recent study, some 50 percent of decision-makers are barely familiar with requirements for the “Single European Payments Area”. Many IT experts will be present at this year’s European Banking & Insurance Fair (E.B.I.F.) to demonstrate SEPA solutions to decision-makers in financial institutes.
SEPA stands for the creation of a uniform EU payment transaction zone. What began with the introduction of the euro is now to be continued with cashless money transfers. According to the EU Commission, every functioning economy requires an efficient and effective payment system. Every year, some 231 billion financial transactions are conducted within the EU – credit transfers, cash payments etc. to the value of €52 billion. At present, European countries have their own different payment systems, which is expensive for banks owing to the absence of economies of scale. With the introduction of the SEPA payment instruments, banks will now make a contribution to uniform payment transactions.
According to a recent survey of 30 large European banks conducted by PSE Consulting, approximately half of decision-makers know little about SEPA requirements. The study, which was conducted on behalf of First Data International, also indicated that banks only saw the costs of SEPA and none of its benefits. Based on the estimations of Steria Mummert Consulting, it is true that the costs will come to tens of billions – more than the euro introduction and Y2K remediation put together. Nonetheless, SEPA also offers substantial opportunities for banks. For example, owing to the legal liberalisation, a small number of international providers (known as “payment groups”) are likely to take over the payment transactions of many European banks. The national trend towards outsourcing payment transactions could be continued at a European level, offering high savings potential for banks. “The large-scale processing of domestic and European payments will lead to economies of scale that banks cannot generate at present”, says Armin Gerhardt, Managing Director of ABK-Systeme GmbH, who is an SEPA expert and an exhibitor at the E.B.I.F.
The European economy could save up to €100 billion every year. In addition, the EU Commission expects the introduction of SEPA to stimulate substantial economic growth in Europe. As the world’s leading exporter and one that sells some 60% of its products to other EU countries, Germany stands to benefit more than most from the easier, faster payment processing. Companies that are active across the EU will benefit from developments such as SEPA direct debit. Funds that are made available sooner can be reinvested straight away. Consumers who hold EC cards – i.e. debit cards linked to a bank account – will also stand to gain from the new developments. To date, these can be used at approximately 500,000 terminals (e.g. supermarkets etc.), a number that is expected to rise to 4.7 million across Europe in the future.
“Above all, investment in IT is vital. By developing suitable strategies now, companies can minimise the costs of introducing SEPA”, explains Hans-Rainer van den Berg, SEPA specialist and Chairman of Van den Berg AG, a regular exhibitor at the E.B.I.F. Thomas Schütz, Managing Director of Messe Frankfurt Ausstellungen GmbH and organiser of the E.B.I.F., adds: “We are very pleased to have so many leading SEPA experts among our exhibitors. Representatives from banks and insurance companies will be able to see the pragmatic solutions for themselves when they visit the trade fair in November.”
More than 7,000 international users and decision-makers from financial and insurance institutions are expected, along with some 250 exhibitors, making this event Europe’s largest independent technology trade fair for the banking and insurance sector. This year the E.B.I.F. will once again be taking place within the framework of Euro Finance Week, the high-powered industry gathering of the European finance and insurance sectors in one of Europe’s most important financial centres. To mark the SEPA Days, a number of high-profile speakers have been invited, including European Central Bank President Jean-Claude Trichet and EU Commissioner Charlie McCreevy. An additional attraction for exhibitors and visitors alike is the Sparkassen Informatik IT forum 2006, which is held at the same time and in the immediate vicinity of the E.B.I.F.
9TH EURO FINANCE WEEK 13 - 17 November 2006
E.B.I.F. Trade Fair 14-16 November 2006
SEPA Days 13 + 14 November 2006
Concurrent with: IT Forum 2006, Sparkassen Informatik 14 - 16 November 2006
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Presscontact:
Michael Diegelmann / Henryk Deter
cometis AG
Unter den Eichen 7
65195 Wiesbaden, Germany
Tel +49 611 20 58 55-12/-13
Fax +49 611 20 58 55-66
diegelmann@cometis.de
deter@cometis.de
