EU Commission consultation on Access to Basic Payment Account Swedbank Group response

Transcription

1 EU Commission consultation on Access to Basic Payment Account Swedbank Group response Swedbank Group Kirstine Nilsson SEPA Coordinator Swedbank Group mobile: Version 1.0

2 THIS IS SWEDBANK 3 EXECUTIVE SUMMARY 5 GENERAL REMARKS 6 PRINCIPLES 7 CHARACTERISTICS OF A BASIC PAYMENT ACCOUNT 7 ACCESS TO A BASIC PAYMENT ACCOUNT 8 GENERAL INFORMATION CONCERNING BASIC PAYMENT ACCOUNT 8 MONITORING AND OUT-OF-COURT DISPUTE RESOLUTION 8

3 This is Swedbank Swedbank is a bank for the many people, households and businesses, offering a wide range of financial products and services. In its four home markets Sweden, Estonia, Latvia and Lithuania Swedbank is the leading provider of services in many market segments. Swedbank places great emphasis on close relationships of trust and works conscientiously to help its customers achieve financial sustainability.

4 For more information please visit our web site

5 Executive Summary Swedbank has a strong commitment and engagement to society in the countries in which we operate. We fully support the EU Commission initiative to combat social exclusion and to strengthen consumers ability and confidence. Having access to a basic payment account is, as stated in the CSES report on access to a Basic Bank Account and in the Consultation paper essential to effectively access the Single Market. It must be a joint responsibility of Regulators, overseers and service providers to establish appropriate measures to ensure that all EU citizens are given this access. However citizen s access must be balanced against the need for service providers to manage risk and costs and for regulators and overseers to prevent money laundering, terrorist financing and other criminal activities. At the same time it must be recognised that the perception of basic payment account and necessary characteristics differs between Member States as is shown in the CSES report and as recognised by the EU Commission in the consultative paper. What will be perceived as a characteristic of a Basic Payment account in one Member State is not necessarily the same in another Member State. Therefore it is of utmost importance that EU level recommendation or directive ensures citizens access right while at the same time allowing and supporting Member States differences. For this reason the measure taken by the EU Commission must be generic rather than detailed.

6 General Remarks In general payment account and related services and functionalities are provided by banks to all customers, with a few exceptions. However the service level is differentiated based on customer needs, cost/benefit and risk mitigation. In Swedbank the basic consumer service for payment account is based on an account which gives the customer the right to receive, place, transfer and withdraw funds through the basic customer channel, banking office. Through the banking office customers are able to deposit and withdraw funds as well as pay their bills, set up standing orders etc. A Payment account also allows access to basic Direct Debit instruments i.e. sign a Mandate with a Creditor. Normally banking offices are open five days a week with extended opening hours on one or more evenings a week. This allows customers holding a basic payment account to access the account, initiate payments, deposit and withdraw funds on all national banking days, in some countries and larger cities also on Saturdays. Swedbank Group has 4.1 million retail customers in Sweden and 5.4 in the Baltic region. Of these customers a total of 5.9 are connected to Internet banking (electronic payment initiation channel). The remaining group of retail customers, 3.6 million, are, when needed, taking advantage of services provided by our banking offices for payments and/or transfers. Therefore it would be normal business practice for Swedbank Group to offer the same level of service to all EU citizens provided that it can be done without risk of economic loss, fraud, money laundering or other criminal activities.

7 Principles Swedbank fully supports the principle of a harmonised framework to guarantee the right to access to any consumer. However although we support the principle we find it necessary to ensure that there is a balance between citizens right to access and risk mitigation for service providers as well as for regulators and overseers. Not only should community rules on the prevention of the use of the financial system for the purpose of money laundering and terrorist finance be regarded. Solutions developed and implemented by service providers for the same reason must also be recognised as well as the set of risk mitigation tools and measures service providers normally set up to prevent fraud, miss-usage etc. Enforcing the principle of access to basic payment account must be of benefit for all citizens in the EU and not just for a few. Therefore access right must be balanced against risk and prevention of criminal activities. Characteristics of a basic payment account Swedbank finds it remarkable that the EU Commission includes means of payment and payment initiation channels i.e. Debit Cards and Electronic Payments as part of the mandatory services and functionalities of a Basic payment account. Especially as these means of payments and payment initiation channels are part of payment services regulated in the PSD to increase consumer protection through a shift in responsibility and obligation from consumer to service providers. It is of utmost importance that the EU Commission recognises that the PSD regulation on rights, obligations and responsibilities for card transactions and electronically initiated payments insert a risk on payment service provider for Debit Cards and electronic payments (Internet banking) etc. Therefore these means of payments and payment initiation channels can t, under any circumstances, be part of what is regarded as basic payment account services. As access to a basic payment account will be mandatory for all EU banks to provide and a right for all EU citizens to have it is of utmost importance that the characteristics suggested allows for Member State differences while at the same time ensure financial inclusion for citizens. Swedbank suggest that the Framework when listing services and functionalities remain generic. The list should include: Opening of account Closing of account Ability to o Receive funds o Place funds o Transfer funds o Withdrawal of cash However the framework should not state the means of payment nor the payment initiation channel most appropriate as this will differ from country to country. In Sweden for example access to Debit Card is not included in a basic payment account nor is access to Internet banking as they insert a risk to the bank as service provider. On the other hand in other Member States they may be included if there is no built in risk for the bank providing the service.

8 The framework should in a generic way recommend the services and functionalities that should be included in the basic payment account but it should not mandate or specify how this service shall be provided. Access to a basic payment account Swedbank support the level of accessibility suggested by the EU Commission any consumer could have the right to access to a basic payment account, whatever his nationality or the place of his residence in the European Union. However it is essential to balance the consumer right to access with the service providers need for risk mitigation as well as the regulators responsibility to prevent criminal activities such as fraud, money laundering or terrorist financing. Therefore the consumer right to access must be without prejudice to measures, rules and solution implemented/set-up by service providers and regulators to mitigate risk and prevent criminal activities. The CSES report shows that especially immigrants experience difficulties in getting access to basic payment account due to problem of identification. As a citizens ability to identify themselves is a basis for a number of areas vital for a persons daily life this issue should not be address as part of the Access to Basic Payment Account. When all Member States rapidly provides means of identification to immigrants the problem is solved. This issue must be handled in a separate framework, recommendation or regulation for which the EU Commission and Member States need to take sole responsibility. Such initiative should address Member States handling of immigrants and ensure their rapid access to proper means of identification. General information concerning basic payment account Swedbank strongly support the suggestion made by the EU Commission that consumers should be given understandable information on Basic Payment account and the services and functionalities connected to such an account, including cost for payment transactions. However we find that the right to information as mentioned in the consultation paper is already addressed in the PSD. It would therefore be unnecessary to include the same right to information in a framework on access to basic payment account as is already regulated through the PSD. Should requirements on general information be part of a future framework we strongly recommend that they refer to relevant articles in the PSD or as a minimum correspond to relevant articles. Monitoring and out-of-court dispute resolution As mentioned by the EU Commission in the consultation paper Payment accounts and payment services are already regulated through the PSD although the consumer access right is not. In Chapter 5 section 1 of the PSD monitoring and out of court complaint and redress procedures are addressed. As the account, services and

9 functionalities of the Basic payment account are the same as regulated in the PSD any recommendation on monitoring, intra bank redress procedure and out of court dispute resolution should be consolidated with the PSD. This will ensure an efficient and easy to communicate process for all stakeholders; consumers, service providers and overseers.