SEPA Redux: Understanding How We Got Here
SEPA is finally on the verge of coming into its own, but significant parts of the banking community either have forgotten or do not understand what SEPA is trying to achieve.
In this report, SEPA Redux: Understanding How We Got Here, Celent revisits why SEPA matters and how its future may play out. Many forget that SEPA is as much a set of principles as it is one specific thing. Indeed, SEPA is not just new payment types; it’s about rebuilding the payments business from the ground up to create competition at all levels of the business.
“In order to create competition, there is active intervention into the market, either directly or indirectly, by the regulator,” says Gareth Lodge, Senior Analyst at Celent and author of the report. “As a result, for banks, doing nothing is simply unlikely to be the answer.
In effect the regulator is made up of 20 distinct directorate generals, each with its own area of focus, so there is often conflict and contradiction from the regulator. In addition, there is the complicating element that they are trying to achieve political goals rather than delivering business benefits for all. As a result, some actions have some unintended consequences which aren’t always immediately obvious.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
Back to Basics: What SEPA Is Really About
Creating Esperanto for European Payments
A Common Legal Framework
Are We There Yet? Will We Ever Be?
The Reason for Current Levels of Adoption
Big National/Regional Banks
Small and Medium-Size Banks
Oh, and Cards Too
Transparency of Fees in Cards
A Third Scheme for Europe
Leveraging Celent’s Expertise
Support for Financial Institutions
Support for Vendors
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