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European bankers are pessimistic about their ability to meet the January 1, 2008 deadline for first-stage implementation of SEPA (Single Euro Payments Area), according to a Finextra survey. Also, the vast majority of banks do not expect their corporate customers to be fully SEPA-compliant until after 2010.
The survey, which was sponsored by UK payments technology firm VocaLink, was carried out in August and September with over 100 European and global banks.
Only eight per cent of respondents are already fully SEPA-compliant, and over half do not expect to be able to meet the initial January 1, 2008 deadline. By this date, Euro-zone credit transfers are due to be SEPA-compliant.
SEPA-compliant direct debits, which are due for introduction in 2009, were highlighted as a 'major concern' by 35 percent of banks. Nearly half (44 percent) told Finextra they believe SEPA-compliant direct debits will be 'difficult to manage'.
Direct debits are reoccurring automated payments of bills from a customer’s bank account. Credit transfers involve sending funds from one bank account to another account.
Finally, 81 percent of respondents believe their corporate clients will not be able to provide SEPA-based payment instructions until after the 2010 deadline for banks’ corporate customers to become SEPA-compliant.
