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ACE SEPA Newsletter
Ready
for SEPA? And on TARGET2?
May 16, 2006
Dear Colleague:
Welcome to our SEPA Newsletter.
If the move to SEPA
(Single European Payments Area) is indeed the €13-29 billion
revenue black hole for the banks that some of us believe, March’s
news that both a credit and debit scheme have been approved by the
European Payments Council (EPC) should act as a timely reminder that
competitive advantage will be gained by being well prepared for
these monumental changes to bank payments.
Meanwhile, TARGET2
is creating what we call “Internet Banking for the Banks,” which
will have similarly profound implications for cash and liquidity
management, and create new opportunities for financial innovation.
ACE Software Solutions is hard at work creating value-added services
for banks. The benefits are substantial, whether you are an
operations manager seeking efficiency and cost saving, a risk
manager looking to mitigate uncertainty, or a product manager
seeking to offer clients better treasury services by improving
liquidity management.
Even the humble fax is getting our attention as our customers
seek better STP rates. Some of you no doubt have multi-million
dollar cost centres with many hands still pushing a lot of paper
around. If you have been wondering if there is a way to
repurpose those staff and take out some big processing risks, then
our FAX
Assistant™ is just what you need.
Below you’ll find an overview of the SEPA and TARGET2 initiatives,
and a brief look at our PELICAN™
product, a discussion of one of our partners—CB.Net
—with whom we are doing pioneering work in STP.
SIBOS 2006
is rapidly approaching and we look forward to seeing you in
Sydney
.
SEPA,
or How the Banks Will
No Longer be Finding 13-29 Billion Euros of Loose Change Down the
Couch
Alternatively:
How will banks respond to greater competition, a more demanding
customer base on dramatically reduced margins?
SEPA passed another mini-milestone in March on the road to
2010 implementation, with both EPC credit and debit schemes gaining
approval after extensive consultation. Put simply, SEPA will
move European banking payments from a domestic/cross-border
proprietary technology model to a borderless and interconnected
world based on standards.
The change is profound and complex, but the outcome for the banking
customer is simplification and lower cost. That’s good for
business and consumers within the European Union. But it
presents a big challenge for the banks to revisit their payments
business and technology model and find new best-of-breed solutions
to make the transition as painless and as profitable as possible.
However, by increasing speed
and reducing the cost of transactions to the user, a huge revenue
stream will start to disappear that has served to obscure the costs
and inefficiencies of legacy proprietary technologies.
Early adopters who can find
modular, adaptable and scalable technologies now will gain
competitive advantage. ACE Software offer solutions in this
space that create new products and opportunities whilst leveraging
existing technologies.
TARGET2:
The Next Stage of Banking Consolidation within
Europe
Like SEPA, TARGET2 is being
driven by a European Central Bank (ECB) initiative aimed at
improving transparency in banking operations by creating a single
shared platform (SSP) enabling “internet banking” between the
banks and their central banks.
In effect it brings to inter-bank operations what the banks have
been able to offer their own corporate and retail customers for some
time. We see the main benefits of TARGET2 to the banks
thus:-
-
Development of liquidity
management tools to streamline back office and treasury organizations
and processes
-
Harmonization of
interfaces with ancillary systems all over
Europe
-
Optimisation of
liquidity across the Euro-zone. Large European banks can save
several million euros by centralising liquidity and monitoring
and managing the same via the ICM.
-
Support of internal
consolidation within the bank
ACE
Software’s PELICAN™
makes for safe crossing to SEPA/TARGET2
The issues of SEPA and TARGET2 span the gamut of transaction
size, character and frequency. But ACE Software’s PELICAN™
product, launched at SIBOS last year, has been designed to deal with
both. PELICAN™ suite is a pan European payments, liquidity and
cash management system. It supports full connectivity to
TARGET2, EBA, STEP2, correspondent banking, domestic clearing and
ACH network requirements:-
-
Comprises a number of
fully integrated modules
-
Interfaces with SWIFTNet
-
EAI and STP features
enable PELICAN to integrate with existing legacy systems
-
Support for all payments
creation formats and validation requirements
-
Secure, web-based
interface
-
Interoperability with
most existing legacy systems, reducing installation and
reconfiguration costs
-
Efficient tracking and
reporting of payments processing enables improved services for
customers
-
Where banks manage
services on behalf of other financial institutions, these
efficiencies can help manage and meet SLAs (Service Level
Agreements)
-
Provides centralised
cash reporting
-
Enables transaction
data to feed a centralised liquidity management system with real
time reporting of cash positions for effective use of liquidity
-
Streamlines
back office and treasury functions resulting in savings of time
and resources
BREAKING
NEWS
London
–
ACE
Software Solutions Inc, provider of fully integrated Straight
Through Processing (STP)-enabled payments and transaction processing
solutions for the banking sector, announces the appointment of
international marketing and PR consultancy Rivercalm to create and
deliver a communications strategy that will support the company’s
expansion plans which includes the delivery of new products and
services.
Customers/Partner Profile
CB.Net Ltd is an
international data solutions company established in June 2000 by a
group of bankers and IT professionals. The company provides
electronic products and data solutions to the global payments
community. CB.Net’s flagship product, BankSearchPlus, is the
definitive international payments directory, delivering critical
operational data in one source–both as a web based query tool and
as a data feed–directly into back office systems.
ACE Software has partnered
with CB.Net to produce a joint IBAN solution for financial
institutions, which we announced last year.
Forthcoming
Events
ACE
Software Solutions will be exhibiting again at Sibos 2006, 9-13
October in
Sydney
. Please come along and meet us. For your convenience, o
ur
booth is right outside the lunch area.
For more details on Sibos
2006 please visit : http://www.swift.com
About
ACE
Software
Solutions
ACE Software Solutions is a
specialist provider of artificial intelligence-based solutions for
several premier Financial Institutions in Europe, N. America and
Asia
. ACE has a range of sophisticated products for enterprise-wide Cash
and Liquidity Management, Straight Through Processing (STP),
Enterprise Application Integration (EAI), Anti-money Laundering
(AML) and Fax Automation. ACE has many of the household names of
Financial Services industry as its customers.
How to reach the
ACE
Software Solutions Marketing Team
Tel:
+44 (0)208 947 7200
Fax: +44 (0)208 947 2694
Mobile: +44 (0)7785 227996
Email:
marketing@acesw.com
Web: http://www.acesw.com/
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