Addressing the SEPA Challenge

The mandatory era of the Single Euro Payments Area (SEPA) is fast approaching. In the March edition of The Treasurer, Deutsche Bank's Michael Turner, Head of Cash Management Corporates for the UK and Ireland, stresses that "Time is Running Out" for the unprepared, and outlines what companies can — and should — do now to meet the deadline. Similarly, in "Planning for SEPA Migration" for TMI, Dieter Stynen, Head of Cash Management Corporates for Western Europe, explains why — and how — companies should be prioritising SEPA migration as a matter of urgency.

And "how" is important. We know from discussions with a variety of clients that practical support is greatly needed, which prompted us to compile A Practical Guide to Successful SEPA Migration in partnership with PPI AG.

Divided into four sections, the Guide supports every aspect of SEPA project planning by analysing the initiative's impact on business operations and departments (such as HR and Payroll), giving practical tips on identifying the functional, organisational and technological gaps created by SEPA — and how to close them — and providing an overview of known service providers and optimal selection criteria.

Broader market feedback — quantitative and qualitative — underscores the extent to which such guidance is needed. Despite the urgency, as of December 2012, half of companies had not yet started the project, treasurytoday reports. Our story covering the details of the Deutsche Bank-EuroFinance 5-click survey of 273 treasury professionals reveals a worrisome lack of preparation, while an additional survey conducted by TMI in association with Deutsche Bank notes that only 35% had "fully or mostly completed their credit transfer migration," while an even smaller 13% had "fully or mostly completed their direct debit migration."

With these low levels of migration in mind, Stynen, in a Q&A with EuroTreasurer, describes the worst-case scenario for companies failing to meet the deadline — but also emphasises that there is still time to comply with the right support and a clear plan of action. An example plan is outlined by Karsten Becker, Senior Product Manager Europe for Corporate Payables & Receivables, in an article on "Three steps to SEPA" in treasurytoday, which offers a feasible way forward.