18 January 2018
visit www.ebaday.com

Dutch banks report net losses on payments

13 July 2006  |  9249 views  |  0 Pound Coin Cash

Commercial banks in the Netherlands are urging a rapid switch to electronic payments after a study by McKinsey found that the nation's top banks booked a net loss of EUR23 million on payments transactions in 2005.

The study - which examined the books of ABN Amro, ING, Fortis, SNS Reaal and Rabobank - found that gross profits of EUR3.996 billion on all payment instruments were more than offset by EUR4.019 billion in costs.

While the business segment generated net revenue of EUR708 million, the retail consumer market accounted for a net loss of EUR642 million. Much of the excess costs related to account maintenance, and the management of cash payments and paper-based credit transfers.

The Dutch central bank and the Dutch Association of Banks, who ordered the study, say the results should spur a discussion between banks, shop owners, regulators and consumers that may eventually lead to a more efficient 'National Platform on Payment Systems'.

Flip Klopper, an executive at the Dutch central bank, says: "We would like to see less cash, less paper, more Internet, more electronic paying."

The introduction of a Single Euro Payments Area (Sepa), while incurring a hefty initial price tag, is ultimately expected to lead to a more streamlined system. In the interim, a co-ordinated push to encourage consumers to switch to Internet and electronic transactions, such as debit cards, will be enforced.

Other measures to push down costs are also being explored. Late last month ABN Amro teamed with Rabobank to establish a 50:50 joint venture firm that will manage both banks' cash processing operations. ABN Amro says the new venture will help keep the long-term costs of cash processing for both banks "under control".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK leads Europe for e-payments

UK leads Europe for e-payments

12 July 2006  |  5068 views  |  0 comments
ABN Amro and Rabobank team for cash processing JV

ABN Amro and Rabobank team for cash processing JV

30 June 2006  |  9636 views  |  0 comments
JPMorgan Chase calls for top banks to take lead role in Sepa debate

JPMorgan Chase calls for top banks to take lead role in Sepa debate

06 June 2006  |  7887 views  |  0 comments
Corporates pile the pressure on banks for open payments market

Corporates pile the pressure on banks for open payments market

30 May 2006  |  7799 views  |  0 comments
National card schemes propose euro payments alliance

National card schemes propose euro payments alliance

24 May 2006  |  6393 views  |  0 comments
Banks face sharp fall in payments revenue - BCG

Banks face sharp fall in payments revenue - BCG

19 May 2006  |  6824 views  |  0 comments
Banksys cans BC/MC national payments system in favour of Maestro

Banksys cans BC/MC national payments system in favour of Maestro

18 May 2006  |  9410 views  |  0 comments
European Central Bank warns on Sepa timetable

European Central Bank warns on Sepa timetable

03 May 2006  |  12083 views  |  0 comments
Debit card use outstrips cash for first time in UK

Debit card use outstrips cash for first time in UK

18 April 2006  |  13525 views  |  0 comments
Eufiserv restructures for Sepa

Eufiserv restructures for Sepa

24 March 2006  |  9824 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.capgemini.comvisit www.fivedegrees.nl

Top topics

Most viewed Most shared
Buffett rubbishes cryptocurrencies; South Korea preps exchange crackdownBuffett rubbishes cryptocurrencies; South...
11847 views comments | 16 tweets | 17 linkedin
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
10125 views comments | 32 tweets | 35 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
9830 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9526 views comments | 17 tweets | 14 linkedin
Wells Fargo to close 900 branchesWells Fargo to close 900 branches
9450 views comments | 14 tweets | 16 linkedin

Featured job

Competitive base + commission
London, UK

Find your next job