Slide 1: SEPA – Practical steps to meet the deadline
Treasury and Trade Solutions June 19th, 2013 SEPA – Practical steps to meet the deadline Today’s Speakers: John Murray Karin Flinspach Jonathan Jordan EMEA Head, EMEA Head, Market Manager Corporate and Public Sector Payments and Receivables, Payments and Receivables, Cash Management Technical Produc
Slide 2: Agenda
Agenda 1. The corporate environment and SEPA 2. Market Update and Migration End-Date 3. Practical Migration Steps 4. Migrating to SEPA with Citi 5. Q&A 2
Slide 3: The corporate environment and SEPA
The corporate environment and SEPA • Fewer Bank accounts • Simpler Cash flow forecasting Working Capital Optimisation • Pay / Collect across 32 countries • Harmonised timescales from a single location • Streamlining of Payables & • Standardised formats and content Receivables processes Operational E
Slide 4: 2. Market Update and Migration End-Date
2. Market Update and Migration End-Date
Slide 5: Single Euro Payments Area (SEPA)
Single Euro Payments Area (SEPA) SEPA is the payments integration initiative of the European Union, removing the cross border barriers and driving simplification and harmonization of Euro ACH and Direct Debits. • 32 Countries • Euro currency only • Euro ACH and Direct Debits within this geographical
Slide 6: Benefiting from SEPA – standardisation, efficiency, rationalisation
Benefiting from SEPA – standardisation, efficiency, rationalisation SEPA can support an organization’s path to centralization – standardization and rationalization are key features. Centralization Path Opportunities through SEPA Account rationalization possible with the ability to make and Account R
Slide 7: SEPA Market Development Timeline
SEPA Market Development Timeline Long sought certainty for market participants, end date for migration to SEPA was announced in February 2012. Single end date for both SEPA CT and SEPA DD in euro Member States. 1 February 2014 By end date indicates local and cross border EUR ACH and Direct Deb
Slide 8: Market Transition: Uptake on to SEPA
Market Transition Uptake on to SEPA date Credit Transfer and SEPA Direct Debit SEPA Credit Transfer (CT) Scheme ~41% as of March 2013 Steady increase in adoption Payroll transitioning since Jan 2012 Public sector moving volumes in a number of countries SEPA Direct Debit(SDD) Scheme ~2.5% a
Slide 9: 3. Practical Migration Steps
3. Practical Migration Steps
Slide 10: Understand the SEPA schemes: SEPA Credit Transfer
Understand the SEPA schemes: SEPA Credit Transfer Details • Scheme launched on 28 January 2008 and addresses non-urgent payments to any The Background participating bank in SEPA. • Many organisations already adopted for Vendor Payments, Payroll adoption Payment Types accelerating since Jan 2012. Lar
Slide 11: Understand the SEPA schemes: SEPA Direct Debit Core & B2B
Understand the SEPA schemes: SEPA Direct Debit Core & B2B SEPA has two Direct Debit schemes, Core and B2B, each with specific characteristics to consider. Companies can collect through either scheme, across the Area, with a single SEPA Originator ID. Core B2B • Mandatory DD scheme for C2B and/or B2B
Slide 12: Assess the impact of SEPA on your organization
Assess the impact of SEPA on your organization The first step in the process is to understand your current Euro collection flows, account structures, bank relationships and technology. Bank Relationships, Existing Euro Direct Connectivity & Formats Debit flows Customers Bank A Customers Customers Or
Slide 13: Decide on a SDD scheme: Core or B2B
Decide on a SDD scheme: Core or B2B • Consumer and Business collections • Longer refund period for debtors Core Scheme • Creditor mandate responsibilities Key Questions: • Existing mandate valid • Customer base? • D-2 Standard Execution Cycle • Attractiveness of irrevocable collection? SEPA • Desire
Slide 14: Decide on Your Mandate Management Approach
Decide on Your Mandate Management Approach Key components for review Send mandates out for signature In-house mandate management Upload Mandate Related Information or Convert legacy mandates into SDD compliant Mandate Management Services • Citi has a partnership with CGI- BIC/IBAN conversion & valid
Slide 15: Ensure Focus on Payroll
Ensure Focus on Payroll it is important to pay special attention to payroll when migrating to SEPA. Whether you manage your payroll in house or via third-party payroll provider, focus is needed to ensure internal / HR / third-parties changes take place. Considerations • Bank Reachability–Citi recomm
Slide 16: Factor Niche Schemes into your migration plan
Factor Niche Schemes into your migration plan Niche schemes are those payment and collections schemes that will have an extended period of time to migrate to SEPA standards. Country Niche Scheme Country Niche Scheme (will migrate to SEPA standards by 2016) (will migrate to SEPA standards by 2016) Au
Slide 17: Engage internal and external stakeholders
Engage internal and external stakeholders It is important to ensure internal stakeholders are engaged to cover all necessary aspects of the SEPA migration. A project managed approach is recommended. Investigate ERP impact and budget project. Bank and Account structure Banking connectivity and
Slide 18: Ensure IBAN/BIC readiness
Ensure IBAN/BIC readiness SEPA schemes require the provision of BIC and IBAN information. Thus clients must provide use the BIC and IBAN information instead of national bank account numbers. • SEPA transactions require mandatory BIC and IBAN information. Many organizations do not Challenge hold comp
Slide 19: Define a SEPA Transition Plan
Define a SEPA Transition Plan Align with your Assess SEPA overall Cash Form a SEPA Develop a impact to your Transition Management project team Migration Plan organization Strategy SEPA migration checklist Discuss SEPA with your bank partner Assess Euro ACH and direct debit flows Assess account
Slide 20: 4. Migrating to SEPA with Citi
4. Migrating to SEPA with Citi
Slide 21: Citi’s Leading SEPA proposition
Citi’s Leading SEPA proposition is committed helping clients meet the challenges of the regulatory deadline and to unlock the benefits of SEPA • Helping clients understand the value and impact of SEPA • Bi-weekly SEPA checklist (email on key SEPA project • Market guidance to assess SEPA readiness ac
Slide 22: Comprehensive Advisory & Migration Support
Comprehensive Advisory & Migration Support Complete Production Verifcation Test with Citibank with Assess your current EUR ACH and Direct Debit flows real vendors and/or customers as required. Analyse your account usage, is there scope for consolidation? Solution re-engineering? Agree cutove
Slide 23: A Typical SEPA Implementation
A Typical SEPA Implementation Kick Off Development Testing Go Live Decommission • SEPA • 2-4 Weeks • 6-8 Weeks • 1-2 Weeks • 1-4 Weeks Solution • Prepare Test • Connectivity • Production • Move Full Guidance Environment • File Format Verification Volumes to • Statement of • Regular and Content Test
Slide 24: Other Citi SEPA Events / Activities
Other Citi SEPA Events / Activities • Please visit our SEPA website at transactionservices.citi.com/SEPA/ • SEPA information, Regulatory Guidance, Migration Guidance, Case Studies, Videos • Additionally EPC website provides helpful SEPA information: www.europeanpaymentscouncil.eu Webinars SEPA – for
Slide 25: Q&A
Q&A 25
Slide 26: efficiency, renewable energy and mitigation
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have bee