Costs and benefits of migration to ISO in SEPA

Transcription

1 Costs and benefits of migration to ISO in SEPA Introduction Page description: Europe Economics is conducting a study on behalf of the UK's Payment Systems Regulator to provide a cost-benefit analysis of the migration to ISO in SEPA. This questionnaire asks about the costs and benefits you have experienced, or expect to experience, in migrating to ISO The questionnaire should take about 30 minutes to complete. Please note the following: Questions denoted by an asterisk (*) are compulsory. Therefore, for these questions, please fill in any additional boxes to which you are unable to provide a response with 'Do not know' or 'Not applicable', as appropriate, to ensure that you can progress to the next stage of the questionnaire. Please do not use the 'back button' in your web browser, as this will lose your progress on the questionnaire. Only use the back button provided within the survey software at the end of each page. Responses can be saved at any time after the first page by clicking the "Save and continue later" bar at the top of the page. You will be required to provide an such that a link can be sent for you to continue completing your questionnaire at a later date. We thank you for your time in responding to this questionnaire.

2 1. How would you describe your organisation? * Payment Service Provider (PSP) Corporate Government body Other - please specify 2. What is the name of your organisation? Please note that this is solely for the purpose of Europe Economics identifying who has responded to the questionnaire. Your results will remain anonymous. * 3. In which of the following countries are your organisation's bank accounts based? (If you have bank accounts based in more than one country, please just specify one country for which you would like to answer the remaining questions in this questionnaire.) * Belgium Denmark Finland France Ireland Netherlands UK Other - please specify

3 4. How many employees are there in your organisation? * Less than 10 employees employees employees 500 or above employees 5. What is the approximate annual turnover of your organisation? * Less than 2,000,000 euros 2,000,001 10,000,000 euros 10,000,001 50,000,000 euros Above 50 million euros 6. Could you provide an estimate of your annual volume of euro-based payment transactions (both outbound and receipts)? Less than 10,000 10,000 to 100, ,001 to 1 million 1,000,001 to 10 million 10,000,001 to 100 million More than 100 million - please specify (to nearest 10 million)

4 7. Approximately what percentage of these euro-based payment transactions are each of the following? Low value bulk credit transfer (e.g. SCT) % Low value bulk direct debit (e.g. SDD) % Instant payment (excluding card payments) % High value payment ( wires Real Time Gross Settlement) % General cost and benefit questions Page description: The purpose of these questions is to understand your general impressions about the migration to ISO in SEPA. 8. Focusing on the country you selected in Question 2, please could you describe the messaging standards and systems in place for credit transfer and direct debit prior to the migration to ISO in SEPA? (*Scheme should be interpreted as the wider technical requirements and features of that payment type, i.e. credit transfer or direct debit, aside from its messaging standard.) Please note that all boxes must be filled in as this is a required question. Please, therefore, enter 'Do not know' or 'Not applicable' where relevant to complete your responses. * Scheme* Messaging standard Credit transfer Direct debit

5 9. Has the migration to ISO in SEPA significantly impacted your existing transaction processing time and cost? Please provide one answer per row. * Lowered significantly Lowered slightly No change Increased slightly Increased significantly Do not know Time Cost 10. To what extent do you feel that competition in the provision of payment services has increased since the migration to ISO in SEPA? (This may, for example, be due to more payment service suppliers entering the market, and/or increased competition between existing payment service suppliers) * Significant increase in competition Small increase in competition No change in competition Small decrease in competition Significant decrease in competition Do not know

6 11. Has the migration to ISO in SEPA had a significant impact in terms of the products and services you are being offered and/or the services you are able to offer to others? Please provide one answer per row. * Lowered significantly Lowered slightly No change Increased slightly Increased significantly Do not know Product/services offered to you Product/services you can offer 12. Can you please provide a rough estimate of the one-off migration costs to ISO in SEPA as a percentage of your annual payment processing costs (both outbound and receipts)? * Less than 10 per cent per cent per cent per cent Above 70 per cent - please provide rough estimate Cannot estimate

7 13. Can you please provide a rough estimate of the change in annual ongoing payment processing costs since migrating to ISO in SEPA? * Over 25% less costly (Please specify) 10% to 25% less costly Up to 10% less costly No change in costs Up to 10% more costly 10% to 25% more costly Over 25% more costly (Please specify) Do not know

8 14. Can you please rate the significance of the following benefits of migration to ISO in SEPA for your organisation? '1' is highly insignificant, and '5' is highly significant. * Do not know Reduction in cross-border transaction costs (This could for example be due to consolidation of systems and communication interfaces, which can lead to lower costs related to backoffice system maintenance and support.) Reduced costs of compliance and risk management (This could be due to improved liquidity and collateral management with reduced technical complexity in a cross-scheme and network environment.) Improved integrity at less cost (Common standards are a foundation for enabling improved cross-scheme integrity, or for one message format to be conveyed across multiple schemes or networks.) Greater service provider choice at reduced cost (This could be due to greater competition between service providers which is likely to drive down cost.) Faster, cheaper industry innovation (Common standards will create a more cohesive collaborative crossscheme basis to develop concepts more rapidly and cost effectively by reusing and extending common services, reducing time to market and avoiding service replication.) End users benefits (This includes more straight-through processing, simplification of backoffice operations and e-reconciliation.)

9 15. Can you please rate the significance of the following costs of migration to ISO in SEPA for your organisation? '1' is highly insignificant, and '5' is highly significant. * Do not know Systems analysis costs (This includes both internal, and external (consultancy) costs, to IT specialists and systems analysts in developing, implementing and executing the migration process.) Systems costs (This includes the cost of purchasing and implementing new, or upgrading existing, payment systems, communication interfaces, storage systems and/or middle-ware.) Internal change costs (This includes planning, reorganising internal structures, training, regulatory compliance and administrative costs.) Indirect costs of migration (This includes slower/delayed transactions, increases in returned, rejected or to be refunded transactions and reduced system stability and availability.) 16. Overall, do you feel that you have gained from the move to ISO in SEPA? * Gained significantly Gained slightly No net impact Lost slightly Lost significantly Do not know Implementation and lessons learnt

10 17. Please can you select the implementation method(s) your organisation adopted in migrating to ISO in SEPA Direct Debit and SEPA Credit Transfer? Please select all relevant implementation methods in each column. SEPA Direct Debit SEPA Credit Transfer Upgrade of the existing application proprietary software Upgrade of the existing application external package Buy and implement a fully new processing package adapted to SEPA and ISO Introduce transitional arrangements, e.g. middleware translation software Use an online external third party service for mapping and enriching the existing payment messages (keeping existing application unchanged) Other Please can you describe this 'other' implementation method(s).

11 18. Which of the following applications/systems were impacted by the migration to ISO in SEPA in your organization? Please select all relevant applications/systems. * Bank account management systems ERP / accountancy systems / treasury management applications Payment processing / bank account reporting applications External communication channel systems Internal middleware Other - please specify 19. How long did the complete migration process to ISO in SEPA take? Please specify a number of months only. * months 20. How would a longer implementation period have affected your total migration cost? * Increased significantly Increased slightly No impact Reduced slightly Reduced significantly Do not know

12 21. Please could you explain the reason(s) for your answer to the question above? 22. Do you feel that the fact that you have already migrated euro-based credit transfer and direct debits to ISO in SEPA made or will make it cheaper for you to migrate similar payments in other currencies? * Yes, significantly cheaper Yes, slightly cheaper No, no effect No, slightly more expensive No, significantly more expensive Not applicable Do not know 23. Please could you explain the reason(s) for your answer to your question above?

13 24. What were the main challenges your organisation faced during the migration to ISO in SEPA? Please select all that apply. * Lack of internal resources (e.g. human personnel) Competition for external resources (e.g. appropriately qualified IT consultants) Internal glitches (e.g. software/hardware initially not functioning as intended) Problems with external stakeholders (e.g. delays, lack of quality, bad processing) Other - please specify 25. What are the key lessons you have learnt from your migration to ISO in SEPA? Middleware-related costs 26. Did you use middleware translation software/services during the transition period? * Yes No

14 27. How much did the middleware translation software/services cost as a percentage of your total migration cost? * 0-25% 26-50% 51-75% % Cannot estimate To acquire and install (one-off cost) To operate (annual cost) 28. How long have you used middleware translation software/services for? Please specify a number of months only. * months 29. Are you still using the middleware translation software/services? * Yes No 30. To what extent do you think the use of middleware helps mitigate the cost of migration to ISO in SEPA? * Significantly mitigates migration costs Slightly mitigates migration costs No impact on migration costs Increases migration costs Do not know

15 31. What are the risks and additional costs related to middleware or translation services? Have these risks materialised? Please comment. 32. Has the use of middleware or translation services in any way hindered your company from experiencing the full benefits of ISO in SEPA? Please explain your answer. Quantification of costs Page description: This section asks for quantitative cost estimates, both one-off and on-going, for the migration to ISO in SEPA.

16 33. Please specify the currency in which you wish to provide cost estimates. * EUR GBP DKK Other - please specify 34. Please indicate whether the costs you wish to provide in this section will relate solely to the payment operations in the country in which your bank accounts are based, to your organisation as a whole or other. Our preference is for country-level estimates if this is feasible. * Country-level estimate - please specify country Estimate for whole organisation Other - please specify 35. Please can you provide approximate percentages to apportion the costs of migrating to SEPA Direct Debit to each of the following? ISO migration % IBAN conversion % BIC search and update % SEPA Direct Debit mandates %

17 36. Please can you provide a rough estimate for each of the following cost items specifically in relation to ISO migration in SEPA Direct Debit. Please include any other costs related to the migration to ISO that are not listed below in the last row, and use the free text box to explain what these costs are. If there are no other relevant costs, please put "NA" in all boxes in the last row. When answering this question please ignore the costs associated with IBAN conversion, BIC search and update and SEPA Direct Debit mandates. * One-off On-going (annual) Systems analysis costs (This includes both internal, and external (consultancy) costs, to IT specialists and systems analysts in developing, implementing and executing the migration process.) Systems costs (This includes the cost of purchasing and implementing new, or upgrading existing, payment systems, communication interfaces and storage systems.) Internal change costs (This includes planning, reorganising internal structures, training, regulatory compliance and administrative costs.) External costs (This includes the time spent on technical interface alignments, testing and commercial negotiations with external partners.) Enter another option

18 37. What are the key drivers of the systems costs for ISO in SEPA Direct Debit? Please drag each 'driver' into the relevant box on the right hand side. * Drag items from below into the appropriate categories. Main cost driver Moderate cost driver Payment applications Communication interfaces Storage systems Limited cost driver No cost Middleware Other Can you please describe these 'other' cost drivers? 38. Please can you provide approximate percentages to apportion the costs of migrating to SEPA Credit Transfer to each of the following? ISO migration % IBAN conversion % BIC search and update %

19 39. Please can you provide a rough estimate for each of the following cost items specifically in relation to ISO migration in SEPA Credit Transfer. Please include any other costs related to the migration to ISO that are not listed below in the last row, and use the free text box to explain what these costs are. If there are no other relevant costs, please put "NA" in all boxes in the last row. When answering this question please ignore the costs associated with IBAN conversion and BIC search and update. * One-off On-going (annual) Systems analysis costs (This includes both internal, and external (consultancy) costs, to IT specialists and systems analysts in developing, implementing and executing the migration process.) Systems costs (This includes the cost of purchasing and implementing new, or upgrading existing, payment systems, communication interfaces, storage systems and/or middle-ware.) Internal change costs (This includes planning, reorganising internal structures, training, regulatory compliance and administrative costs.) External costs (This includes the time spent on technical interface alignments, testing and commercial negotiations with external partners.) Enter another option

20 40. What are the key drivers of the systems costs for ISO in SEPA Credit Transfer? Please drag each 'driver' into the relevant box on the right hand side. Drag items from below into the appropriate categories. Main cost driver Moderate cost driver Payment applications Communication interfaces Limited cost driver No cost Storage systems Middleware Other Can you please describe these 'other' cost drivers?

21 41. Are there any further comments you would like to make regarding the costs of migration to ISO in SEPA Direct Debit and/or SEPA Credit Transfer? Benefits of migration to ISO in SEPA Page description: Please note that the remainder of this questionnaire now relates to the benefits of migration to ISO in SEPA. We would like to understand the benefits of migration to ISO for your company. This includes both benefits which have already been realised, and benefits you expect to realise in the future.

22 42. Please can you complete the table below to indicate whether you have witnessed an increase in choice among the following providers since your migration to ISO in SEPA? * Significant increase Small increase No real change Small decrease Significant decrease Cannot tell N appl Payment Service Providers (If you access payment systems indirectly through an agency bank) Central infrastructure / CSM providers (If you access payment systems directly) IT/technology providers 43. Please can you indicate whether the speed of transactions has, in general, increased or decreased since the migration to ISO in SEPA? * Decreased significantly Decreased slightly No change Increased slightly Increased significantly Do not know

23 44. Please can you provide estimates for the speed of low value bulk payments (i.e. credit transfer and direct debit) both before and after migration to ISO in SEPA? Speed before migration Speed after migration seconds seconds

24 45. ISO in SEPA is sometimes said to increase interoperability across payment systems and across their participants. We would like to understand the benefits that this has brought or you expect this to bring to your organisation. Please rate the significance of the following benefits to your organisation as a direct result of increased interoperability under ISO in SEPA? When responding to this question, please take into account both benefits that have been realised and those that are yet to be realised. '1' is highly insignificant, and '5' is highly significant Do not know Lower transaction or clearing service costs More straight-through processing Consolidation of payment platforms/applications Consolidation of external communication interfaces Rationalisation of payment accounts/banking relationships More bespoke offers from infrastructure service providers/payment service providers Enhanced transaction traceability and tracking Improved anti-money laundering processes Enter another option Enter another option Enter another option

25 46. Could you please provide a rough estimate of the annual cost savings due to the lower transaction and/or clearing costs since migration to ISO in SEPA? Please specify the currency in your response. 47. Could you please provide a rough estimate of the annual operational cost savings due to straight-through processing following migration to ISO in SEPA? Please specify the currency in your response. 48. Could you please provide a rough estimate of the annual operational cost savings due to the consolidation of existing systems following migration to ISO in SEPA? This should include lower costs of running, up-keep, maintenance etc. Please specify the currency in your response. One-off Ongoing (annual)

26 49. ISO in SEPA may be considered to support richer data in messages and additional functionality. We would like to understand the benefits that this has brought or you expect this to bring to your company. Please rate the significance of the following benefits for your company as a direct result of additional functionality under ISO in SEPA? When responding to this question, please take into account both benefits that have been realised and those that are yet to be realised. '1' is highly insignificant, and '5' is highly significant Do not know Enhanced structured payments data More timely and accurate account reporting Easier (e-)payments reconciliation and invoicing Improved cash management Improved liquidity More innovation/value added services/applications Reduced risk of fraud and improved anti-money laundering processes Enter another option Enter another option Enter another option

27 50. Could you please provide examples of how ISO in SEPA has led to more innovation/bespoke offers/value added services or applications? 51. Could you please provide a rough estimate of the annual cost saving due to easier payments reconciliation and invoicing? Please specify the currency in your response. 52. Suppose that an organisation outside of SEPA decides to adopt ISO but maintain their own legacy rulebooks (i.e. not adopt SEPA rulebooks). To what extent do you think they would be able to reap the benefits that you have described above? '1' indicates that the benefits of ISO alone is close to zero, while '5' indicates that the benefits would be very similar to what the firm would get in the scenario that it adopted the SEPA rulebooks. * Do not know

28 53. Could you please explain your answer to the question above? address 54. Please provide your address if you would like to be sent a copy of your responses. Please ensure only one address and no additional text is entered in this field, as this field will be used to automatically generate the with your questionnaire responses. We particularly recommend this option for participants who have scheduled, or would like to schedule, an interview with us, as this will allow us to refer to your responses during the follow-up interview.