De Nederlandsche Bank Migration of the Netherlands to the Single Euro Payments Area Bernard Juffermans Program Manager SEPA Netherlands Brussels, 20th March 2013 318 days to go
Agenda - SEPA in Dutch practice - Governance National Forum for the SEPA migration - Program office approach of the migration - SEPA-migration plan and reality - SEPA monitor results January - Issues - Communication campaign 2
SEPA General remarks Full migration per 1-2-2014 remains the common goal The Netherlands will not make use of waiver possibilities Banks and software companies under pressure to be ready in time, preparations are in order; ultimately end of Q1 2013 the basic payments infrastructure will be ready for full mass migration. Major concern is congestion close to the end-date; when the majority of businesses migrate at the latest possible moment, the peak in demand for support by banks, processors, ITsuppliers and SEPA consultants may be to high dd Mmmm yyyy 3
National Forum for SEPAmigration (NFS) Executive Council Organisation NFS Task Force SEPA NL Program Office Suppliers End-users Software suppliers Intermediairs Stakeholders represented in national migration through umbrella organisations Programme connected to migration activities of umbrella organisations 4
Typical Polder model for governance the NFS Dutch Polder Model Broad participation organisations stakeholders Goal: efficient and co-ordinated migration - By Exchange of information and experiences Organisation of a national communication campaign Signalling / solving migration hurdles Monitoring SEPA change-over 5
Program office SEPA Netherlands - 7 FTE; including communication, ICT and SEPA experts - Account management & stake holder management - Monitoring directly 200 big billers - Two monthly monitor of SME s - Reporting to the NFS - Problem solving - Executing the communication campaign - Organizing presentations and workshops - Organizing workgroups to solve problems between stakeholders 6
National Migration Plan Specifications for basic product range for business users Infrastructure ready for mass migration SCT SDD EPCA 1 February: end date for migration to SCT and SDD SDD meets Regulation s consumer protection requirements 2012 1-10 2013 1-3 1-7 2014 Banks Adjust infrastructure to European payment instrument requirements Support user migration Software suppliers Adjust applications Support user migration Wholesale SCT users Early movers Mass migration Small-business SCT users Early movers Mass migration Wholesale SDD users Early movers Mass migration Small-business SDD users Early movers Mass migration Consumers Increasing use of IBAN Communication Communication by umbrella organisations, intermediaries, banks Public information campaign Possible use of niche products beyond end date
Migratie wholesale and public organisations according migration plan 40% 35% 30% 25% 20% 15% 10% 5% 0% sep-12 oct-12 nov-12 dec-12 jan-13 feb-13 mar-13 apr-13 may-13 jun-13 july-13 aug-13 sep-13 oct-13 nov-13 dec-13 jan-14 SCT SDD 8 8
Planning migration wholsale and public organisations 30% 25% 20% 15% 10% 5% 0% sep-12 oct-12 nov-12 dec-12 jan-13 feb-13 mar-13 apr-13 may-13 jun-13 july-13 aug-13 sep-13 oct-13 nov-13 dec-13 jan-14 SCT SDD
Migration SME s according migration plan 80% 70% 60% 50% 40% 30% 20% 10% 0% 2012 first half 2013 second half 2013 Begin 2014 SCT SDD 10 10
Planning migration SME s 70% 60% 50% 40% 30% 20% 10% 0% 2012 first half2013 second half2013 Begin 2014 SCT SDD
Migration Monitor January 2013 (1) 100% Do you have a good picture of the changes facing your organisation as a result of the introduction of the SEPA payment instruments? % General or complete picture 80% 60% 40% 20% 0% Mar-10 Sep-10 Mar-11 Sep-11 Feb-12 Sep-12 Jan-13 SMEs Mid-sized businesses
Migration Monitor January 2013 (2) 70% Stages of preparation for the SEPA Credit Transfer 60% 50% 40% 30% 20% 10% 0% SMEs Not yet started Requirements/execution Fully migrated Mid-sized businesses Investigations/impact analysis Testing/implementation
Migration Monitor January 2013 (3) 80% 70% 60% 50% 40% 30% 20% 10% 0% Stages of preparation for the SEPA Direct Debit SMEs Mid-sized businesses Not yet started Investigations/impact analysis Requirements/execution Testing/implementation Fully migrated
Migration Monitor Januari 2013 (4) - ± 90% of businesses with over 20 employees is familiar with SEPA and the resulting changes they are facing. - Of businesses with over 5 employees, more than half has started preparations for the SEPA standards. - Of businesses with over 20 employees, three quarters have started preparations. - Attitudes towards SEPA among businesses are generally neutral to positive. 15
SCT Migration Rates 45% SEPA Credit Transfers as % of all credit transfers 40% 35% 30% 25% 20% 15% 10% 5% 0% 2012 I 2012 II 2012 III 2012 IV 2013 I 2013 II. Note: 2013 numbers are based on projections by Dutch banks. Euro area Netherlands 16
ISSUES - Reconcilliation problems during the migration; compagnies are receiving domestic and sepa payments, in different formats - No more direct debet possiblity with no refund (used by e.g. universities,lotteries) - No more use of short account numbers (used by fund raising organisations) - More fall out expected of automatic direct debet (now less then 2%) - Different rules in Europe around SDD in the B to B market and not every bank has to apply to this scheme - 17
SEPA Communication campaign - To improve knowledge on IBAN and products - Three stage rocket: - General public campaign - Umbrella organisations with members - Enterprises & organisations with clients - Timing: milestones 18
TV commercial 19
Campaign website
Toolkit - Banner - Factsheet/flyer - Animation(s) - Campaign logos - SEPA checklist for firms - Source texts - Set of Q & A - Helpdesk - Radio and TV commercials - Template impact analyse
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Netherland is migrating to IBAN Keep it into account! Questions?