Survey: Banks changing business models, embracing strategic sourcing partnerships to stay competitive in SEPA payments landscape
Capgemini poll of global financial services industry executives finds wide support for a new pan European cards scheme.
8 October 2007
To remain in the forefront of developing a Single Euro Payments Area (SEPA), banks are reassessing their operating models in Europe, and more than 61 per cent are incorporating new sourcing strategies in their plans, according to a survey of top industry executives conducted at SIBOS 2007.
The survey, conducted by Capgemini, also found that banks throughout Europe widely support the solution of a new European bank card programme that would replace existing national ones and provide an “Any Card at Any Terminal” field.
“Our survey at SIBOS suggests that the banking community is taking to heart many of the key findings of the 2007 World Payments Report, published recently by Capgemini, ABN AMRO and the EFMA,” said Bertrand Lavayssière, Group Director, Capgemini Financial Services. “Clearly, banks throughout Europe are sharing the need to adopt new business models and strategies in order to succeed as the SEPA marketplace evolves.”
Surveyed on Tuesday 2 October, at SIBOS, top financial executives were asked to comment on a range of critical financial issues, but they tended to focus largely on SEPA, which many consider to be one of the greatest transformations the global payments industry has ever faced. Among the top-line findings of the survey:
- SEPA unlikely to meet 2010 milestone: 47 per cent of the surveyed executives described the 2010 milestone for the SEPA initiative to reach critical mass – the tipping point at which banks will begin decommissioning legacy payments – as either “somewhat unrealistic” or “very unrealistic.”
- Incentives would speed up SEPA: Among the respondents, 85 per cent of the surveyed executives “strongly agree” or “somewhat agree” that SEPA adoption could be accelerated if regulators would provide incentives to mobilize the public sector and corporations to adopt the new SEPA instruments.
- An All-Europe card would be welcomed: 86 per cent of those surveyed were either “very much in favour” or “somewhat in favour” of a new European card that would replace existing national ones.
- Business models changing: As the SEPA landscape evolves, financial institutions are changing their business
models to remain competitive, with many planning to form strategic sourcing partnerships. Asked
if they currently outsource or plan to outsource their payment activities:
- 26 per cent are already outsourcing some of their payment activities
- 26 per cent plan to outsource some payment activities in the next five years
- 42 per cent have no plans to outsource payment activities
“The survey at SIBOS, coming on the heels of the World Payments Report, demonstrates the enormous impact that the world’s leading financial experts predict SEPA will have on the global payments industry,” said Mike Hampson, Global Head of Financial Institutions, Transaction Banking, ABN AMRO. “The advent of SEPA will create a wide range of new competitive challenges for the financial community, and for many, the smart solution will be to seek out strategic sourcing partnerships with trusted and experienced service providers.”
Mr. Lavayssière concurred, “By working with a carefully chosen strategic sourcing partner, banks will be able to leverage their combined assets and capabilities. This will allow greater focus on core skills and full leverage of limited capital in the areas of the business that differentiate them.”
ENDS
Capgemini
Marion Lecorbeiller
Tel: +33 6 12 73 03 44
marion.lecorbeiller@capgemini.com
GCI Group for Capgemini and ABN AMRO
Nishma Shah / Hannah Mercer
Tel: +44 20 7072 4000
nshah@gciuk.comhmercer@gciuk.com
About Capgemini
Capgemini is positioned with deep industry experience, enhanced service offerings and next generation global delivery to serve the financial services industry. With a network of 15,000 professionals serving over 900 clients worldwide, we move businesses forward with leading solutions and best practices in Banking, Insurance, Capital Markets and Investments. As one of the world’s foremost providers of Consulting, Technology and Outsourcing services, Capgemini enables its clients to transform and perform through technologies. Capgemini provides its clients with insights and capabilities that boost their freedom to achieve superior results through a unique way of working called the Collaborative Business Experience. Capgemini reported 2006 global revenues of EUR 7.7 billion and employs more than 80,000 people worldwide. For more information, or to download our reports visit www.uk.capgemini.com/financial
About ABN AMRO
Netherlands-based ABN AMRO is a leading international bank with total assets of EUR 1,120.1 bln (as at 30 June 2007). It has more than 4,500 branches in 53 countries, and has a staff of more than 107,000 full-time equivalents worldwide. ABN AMRO is listed on Euronext and the New York Stock Exchange. ABN AMRO Transaction Banking delivers cash, trade and supply chain, and card products and services to corporations and businesses, financial institutions, retail customers and private clients globally. These services are available in some 3,000 locations in more than 50 countries. Underpinning this extensive global network is integrated technology supporting billions of payment, trade and card transactions every year. Global scale, a commitment to continuing product and service innovation and an in-depth understanding of local and global markets are key components of our offer. For more information, visit www.abnamro.com/transactionbanking
