Lack of Standards Frustrating European Payments Efficiency
Common standards are vital to clients’ operating efficiency for Euro payments in the Single European Payment Area (SEPA), according to JPMorgan Treasury Services (TS). Following a forum that included 23 the bank’s clients, JPMorgan TS said that attendees found a degree of frustration in the debate over new standards and regulations and a desire for strong leadership on the way forward. The attendees agreed that standards needed to emerge in the market in three areas: payment systems and instruments; the messaging standards between corporates and banks; and within the systems used by corporates. According to JPMorgan TS, its clients felt that the implementation of BIC and IBAN standards was creating additional overheads and not addressing the fundamental sources of costs on pan European cash management.