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SEPA Credit Transfers; a over hype phoney project

Despite what hype there has been in the media and all the pundits jumping up and down shouting Eureka the SEPA project to date is just a damp squib. SIBOS this year had many vendors ringing their hands in frustration at the lack of SEPA system sales whilst others secretly patted themselves on the back as their smoke and mirrors system gathered dust on the imaginary shelf.

Banks have given all the impression of compliance but in reality the majority have not yet, actually gone live. Banks have still not worked out the commercials and new offerings for their corporate customers according to most corporates. In these difficult times a burst of SEPA Credit Transfers looks unlikely as the banks protect their revenue streams.

The real experts in the SEPA mirage are the software vendors and I can count very few that fall into the category genuine experts with real solutions. These experts are nonplussed by the low SEPA volumes and the inability of regulators to force business through SEPA. The problem is that SEPA is a political innovation and for a long term objective and has very little if any clear business case. However, all is not lost as SEPA Direct Debits will soon to breathe life into this project.

Where SEPA Credit Transfers are at best lukewarm in their attraction, the Direct Debit business is very different. Only two software vendors appear to be ahead in this particular race and I fully expect them to clean up. In the meantime beware of software vendors with a smoke and mirror marketing pitch and those banks expert in camouflage and the creation of a phoney project. Where are the regulators when you need them?

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Gary Wright

Gary Wright

Analyst

BISS Research

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19 Sep 2007

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London

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