SEPA Instant Payments. Kirstine Nilsson

Transcription

1 SEPA Instant Payments Kirstine Nilsson

2 Scope; SEPA Instant payments - Translating opportunities into efficient payments How can this be done? This presentation don t necessarily reflect the view of Swedbank.

3 Agenda Implementation and uptake SEPA and Swedish experience Brexit and negotiating a SEPA deal for UK SEPA connectivity solutions customer payments Having the infrastructure to operate in real time mode Blending real time payment systems into legacy systems An ideal entry door for fraud? 3

4 The Payment Market Landscape Fears competition in a highly digitalised society Demanding new regulations Payment Service Directive II General Data Protection Regulation Changing customer behaviors Digital first Instant easy access Share and compare data Global shopping 24/7 New competitors Fast and innovative New business model High margins on value added services Low/no margins on traditional services Vertical integration shift in value chains We are facing a challenging and changing market Macroeconomic perspective Low interest environment EU - Brexit Technology Robotics Data analytics Blockchain Internet of Things 4

5 The Payment Market Landscape Fears competition in a highly digitalised society 5

6 SEPA Instant Payment Implementation & Uptake CSM Overseen by Instant Credit Transfer scheme Banca d'italia Banca d'italia EBA CLEARING European Central Bank EquensWorldline De Nederlandsche Bank Iberpay Banco de Espana Latvijas Banka Latvijas Banka CENTROlink Lietuvos Bankas Nets A/S Finanstilsynet Nexi S.p.A. Banca d'italia SIBS FPS Banco de Portugal 3/04/2018 STET Banque de France 6

7 SEPA Instant Payment Implementation & Uptake EPC SEPA Instant Rulebook launched 20 th November 2017 EBA Clearing RT1 went live at the same date 3 months after go-live RT1 has a rechability of; over 500 Payment Service Providers 10 EU countries Has processed Over transactions For a total value of over 300 million euro On a daily basis Over transactions Of which 95% in less than 3 seconds

8 Agenda Implementation and uptake Brexit and negotiating a SEPA deal for UK SEPA connectivity solutions customer payments Having the infrastructure to operate in real time mode Blending real time payment systems into legacy systems An ideal entry door for fraud? 8

9 SEPA Instant Payment EU - Brexit Challenges SEPA Rulebooks are based on EU regulation SEPA is based on SIPS Overseeing is under the umbrella of ECB Scenario 1 - Like Norway, Iceland and Lichtenstein Adapt national regulation to EU regulation Accept the overseeing being driven by ECB Scenario 2 Like Switzerland, Monaco etc. Become part of the geographical scope of SEPA Legislation only applies to payment transactions EEA institutions However the Rulebook applies to all adhering to the scheme 9

10 Agenda Implementation and uptake Brexit and negotiating a SEPA deal for UK SEPA connectivity solutions customer payments Having the infrastructure to operate in real time mode Blending real time payment systems into legacy systems An ideal entry door for fraud? 10

11 SEPA Connectivity solutions Customer payments Instant PaymentB UK SE PL IN MX Domestic P2P Strong Strong Strong Strong Strong Substitute for cash, Consumer trade platforms (Tradera, AirB&B) C2B Strong Strong Strong Strong Strong Digital Commerce, Brick & Mortar merchant purchase B2C Medium Medium Medium Strong Strong Consumer credits, Refund, Rectification, (Salaries, Reimbursement, Commission?) B2B Medium Medium Medium Week Medium Payment vs Delivery (supplier), e- Commerce B2B Cross Border P2P Medium Medium Medium Week Medium Substitute money remittances, Migrant family support payments Based on Deloitte. report, Real-time payments changing the reality of payments (2015) 11

12 SEPA Connectivity solutions Customer payments Success factor.. Easy, fast & secure Solves a real problem Reachability Brand recognition & app acceptance Popular safety solution (Should it be) Free for the consumer!

13 A Swedish example. Swish One infrastructure - three different services Swish Private (Launched 2012) Swish Corporate (Launched in 2014) Swish Commerce (Launched in 2016)

14 A Swedish example. Swish Statistics Payments in January Using Swish Privates Corporates Commerce

15 SEPA Connectivity solutions Customer payments Success factors.authentication/identity Yet another Swedish example BankID Estimation million will have BankID (vast majority Mobile BankID BankID will be used 3 billion times during 2018

16 SEPA Connectivity solutions Customer payments Success factors.authentication/identity Yet another Swedish example BankID Public services Government Other private services Financial services Payment services Internet- and Mobilebank services Source: Financiell ID Teknik. 16

17 Agenda Implementation and uptake Brexit and negotiating a SEPA deal for UK SEPA connectivity solutions customer payments Having the infrastructure to operate in real time mode Blending real time payment systems into legacy systems An ideal entry door for fraud? 17

18 Having the infrastructure to operate in real time mode - System support is not enough Operations 24/7 Back office (Robotics) Incident management Payment processing: R-messages, claims, inqueries KYC/AML; instant handling & evaluation Customer support 24/7 Front office (Artificial Intelligence) Support for Consumers and Corporates Multiple channels Virtual assistant Digital Intelligent Personal assistance Staff on site/call From physical to AI and Robotcs 18

19 Agenda Implementation and uptake Brexit and negotiating a SEPA deal for UK SEPA connectivity solutions customer payments Having the infrastructure to operate in real time mode Blending real time payment systems into legacy systems An ideal entry door for fraud? 19

20 Solution 1 Solution 2 Solution 3 Solution X Blending real time payment systems into legacy systems The secret of layers Digitalization require Real time Customer interaction Payment initiation, data (collection and immediate usage, customer interaction Based on - expressed customer need, - peer preferred services - designed based on customer business and need understanding Immediate reaction Substitute from legacy to real time Services Value adding services own or partners Reflected reaction Digitalization Require Automation Commu nication Analytics and data Browser platform Support for real time (any time) Maintain what gives stability and support Substitute what does not contribute Processing Require Stability & Efficiency Processes Features Real time processing Legacy Solutions. Finalising the processing, Long term storage/usage of data. consider the services capabilities of existing systems and match them with end users' new requirements Build a hybrid out of what s old and what s new to get the best, yet affordable solutions 20

21 Agenda Implementation and uptake Brexit and negotiating a SEPA deal for UK SEPA connectivity solutions customer payments Having the infrastructure to operate in real time mode Blending real time payment systems into legacy systems An ideal entry door for fraud? 21

22 An ideal entry door for fraud? What are the risks/what needs to be done Have ones Risk Management policies in place Know your Customer Business is provided to our customers Transaction screening Efficient and real time transaction screening Policy what IF 22

23 An ideal entry door for fraud? What are the risks/what needs to be done Product Risk Assessment Risk mitigation for real time is not a one size fits all Low value transactions Financial payments IntraCompany sweeping & Funding B2B Delivery vs Payment P2P Trade and payments 23

24 We are in the business of Risk The key is to find the week link 24

25 Kirstine Nilsson 25