by Luca Poletto, Head of SEPA, BNP Paribas Cash Management, Andrej Ankerst, Head of Cash Management Germany, Robert Mol, Head of Cash Management Netherlands, at BNP Paribas Cash Management
Over the past 12 months, many websites have displayed a ‘countdown’ to the 1st February 2014 end date for SEPA migration. As the countdown reached 3 months, 1 month, 1 week, anxiety grew, not least due to ongoing uncertainty about the adoption of an additional transition period. While some uncertainty remains, European payments systems did not collapse on 1st February. Rather, this date marks not the end, but the start of a new era for cash management. The challenge for banks, regulators and corporations alike is how best to leverage SEPA as a basis for future innovation.
Progress towards migration
In the final months before the SEPA migration end date, we saw a large number of customers migrating to SEPA credit transfers (SCT) and direct debits (SDD), particularly in December 2013 (74% of credit transfers and 41% of direct debits, source: European Central Bank) and January 2014, when many large remitters completed their migration.