Join the Community

22,135
Expert opinions
44,173
Total members
427
New members (last 30 days)
194
New opinions (last 30 days)
28,715
Total comments

SEPA: The Future is Integration Management

  0 1 comment

It’s not quite so fashionable to talk about SEPA these days. After all – aren’t we all wishing the rules and solutions were are all defined and implemented? But there’s still a fundamental challenge that banks (and corporate treasuries) face: integration among both legacy formats and legacy systems. Payments hubs are still often discussed as a solution, but the stark reality is that even after several years of industry discussion, few banks have implemented a payments hub to address SEPA.

Integration Frameworks
Don’t get me wrong, I still believe in the value of a hub. The centralization of processing to ‘break down the silos’ is still a major issue as banks strive for efficiency and cost savings. However, the effort involved to implement a hub strategy is considerable and can make these projects very daunting (especially if no application is replaced). One approach that is gaining more traction is the payments framework as a means of managing the flow of SEPA transactions between new and legacy components. This enables banks to start on a technology renewal path in a phased approach, with or without a hub. A big-bang replacement of payment processing is no longer required as flows can be migrated in phases by reconfiguring the integrated workflows as new systems and payment schemes become available.

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

Join the Community

22,135
Expert opinions
44,173
Total members
427
New members (last 30 days)
194
New opinions (last 30 days)
28,715
Total comments

Now Hiring