Preparing for EURO: adopting SEPA standards for payments in Lei. Ionel Dumitru SEPA Project Manager

Transcription

1 Preparing for EURO: adopting SEPA standards for payments in Lei Ionel Dumitru SEPA Project Manager

2 Agenda How the Romanian banking community prepares for payments in EURO TransFonD and SENT System SEPA project in Romania Transfond SEPA Strategy 4 SCT-RON 5 Next steps 6 Conclusions Page 2

3 TRANSFOND PROFILE Foundation: 2001 as a private company owned by the domestic banking community Shareholders: The National Bank of Romania: 33.33% of the share capital and 23 commercial banks established in Romania, owning % Number of employees: 104 persons Roles: Administrator and operator of the SENT system - the Automated Clearing House for low value payments, up to RON) Technical and functional operator for the ReGIS system (real time gross settlement system for urgent and high value payments, more than RON) Technical operator for SaFIR system (government securities deposit and settlement system) Page 3

4 SENT: The Retail Payment System SENT: TRANSFOND s Electronic Net Settlement System Clearing Cycles/day: Multiple (3) daily clearing cycles End of cycle settlement via NBR/ReGIS accounts Payment Instruments and messages SWIFT XML standards equivalents of FIN: Credit Transfer: CoreBulkCreditTransfer Direct Debit: CoreBulkDirectDebit DI: (check, bills of exchanges, promissory notes) Electronic signature (User authentication, authorize payment files) Network: TFDNet- proprietary network Client/Bank online Interface Online interfaces with SaFIR and ReGIS Collateral data (ReGIS & SaFIR) Settlement data (ReGIS) Next move: adopting SEPA standards for payments in RON Page 4 SENT

5 Agenda How the Romanian banking community prepares for payments in EURO TransFonD and SENT System SEPA project in Romania Transfond SEPA Strategy 4 SCT-RON 5 Next steps 6 Conclusions Page 5

6 SEPA Project in Romania Romanian Banking Association: Member of the EPC since March 2007 The National SEPA Committee: Romanian Banking Association(RBA), Ministry of Economy and Finance (MEF) TransFonD (TFD) Representatives of National Bank of Romania (NBR): observers National Migration Plan (publicaly No domestic infrastructure for euro payments Transfond to provide euro services before euro adoption Romanian banks in SEPA (no direct participation) Via the parent banking institution Via correspondent credit institutions outside the country Via correspondent credit institutions in Romania Messages used in relation with SEPA: FIN MT103 conversion services (correspondent banking)- most of banks Page 6

7 SEPA project in Romania Relatively low volume of euro payments (<300k/month) Not justifying a separate system only for euro payments Adoption of euro: What SEPA brings to an ACH entering the Euro zone: Unique currency, standards, rules and interoperability Loss the domestic currency shield Larger open market but new possible competitors in own homeland Possible higher volume but low prices and returns from payments Fight for current customers Invest for improvements, higher performance and new AOS Unpredictable future Tough decision to make Own studies and research Consultancy Consulting the stakeholders and shareholders Page 7

8 Agenda How the Romanian banking community prepares for payments in EURO TransFonD and SENT System SEPA project in Romania Transfond SEPA Strategy 4 SCT-RON 5 Next steps 6 Conclusions Page 8

9 TransFonD options for SEPA What happens to payment infrastructure after 2014? Prepare to become a SEPA compliant CSM and take the chance? (accept the challenge /risks) Provide the same service until euro adoption (and close the payment activity in 2015?) 9

10 RBA/TRANSFOND strategy on SEPA RBA/ Transfond decisions on SEPA project Banking community and Transfond to adopt the SEPA Standards and rules for RON Interbank Payments, before Euro Adoption TransFonD to modify the SENT system as to accept and process RON payments in SEPA format SENT System to accommodate two kind of participants (and messages): SEPA (RON) ready participants: using SEPA XML format messages Non SEPA participants: using current XML formats Apparent paradox? SEPA= In Euro zone: self regulated process, based on adherence process (even a deadline is likely to be imposed) In Romania (for non euro payment!!!): mandatory Page 10

11 TRANSFOND Strengths A new and competitive infrastructure (2005) High degree of SEPA compliance Knowledge in payment systems Good history and high clients satisfaction Banks, authorities and NBR support Check clearing (with image exchange) service in the same system Real time clearing mechanism XML payment messages (easy to convert to ISO format) CT message very similar to SEPA Credit Transfer SCT mandatory data (attributes) present BIC and IBAN codes mandatory and validated in the system Page 11

12 Transfond SEPA strategy Ensure a smooth transition to SEPA formats for CT in lei Implement the SDD scheme (domestic reach for lei payments) Adopt the SDD Rulebook by system rules and/or Interbank agreement Ensure Centralized mandate management Improve the payment service and clearing eficience Optimize the clearing process (queuing, gridlock resolution) Detailed reports and reconciliation (payment instruction level) Provide suplimentary services to banks and their clients e-archiving (for payment related data and other data as well) e-invoicing (invoice-payment matching and reconciliation) Prepare arrangements for change to euro Euro-SENT System (clone) ready for domestic payments in euro Set up the Settlement interface (most probably TARGET2) Ensure reachability for SEPA payments: interoperability agreements Set up intercsm interfaces Page 12

13 Transfond SEPA programme SCT SDD EURO SENT-RO EURO SENT- EU SCT RON payment message R messages Business rules SDD Schema Business rules SCT + SDD + Domestic EUR payments TARGET2 settlement EURO SENT-RO plus: --Cross border Page 13

14 Agenda How the Romanian banking community prepares for payments in EURO TransFonD and SENT System SEPA project in Romania Transfond SEPA Strategy 4 SCT-RON Project 5 Next steps and conclusions Page 14

15 Phase 1: SCT RON Project SENT System Rules NBR CT regulation EBA specs/interface EACHA Framework Implementation Guidelines CSM Market Practices SCT Rulebook SENT SEPA Bilateral Message Exchange Messages signed by sender Homogeneous files only Reject: file level only, simple message Return a payment: new CT Convert FIN - XML SWIFT ACK messages for status changes (file level) Page 15 Centralized ACH (T2 Model) Messages signed by sender (BtoCSM) and CSM (CSMtoB) Optional (sorted/not sorted) Reject file, batch or payment REJECT message RETURN message (corelat) Convert SENT- SEPA (XML,ISO) ACK and Positive status reports per file and item in the file

16 SEPA and non-sepa participant in SENT system Participants SEPA Non SEPA Use SEPA messages Use R messages Observe SEPA scheme Use current SENT messages Send/receive SENT messages Adopt RETURN SEPA messages New SENT system Receive and accept SEPA snd non SEPA messages Messages validation (2 xsd schemas) Convert messages (if needed) Sort payment instructions Clearing & Settlement in REGIS Notifică (Positive Status Report) Page 16 16

17 SEPA and Non SEPA messages in SENT System Page 17

18 SENT SEPA compliant SCENE Participants Direct participant Direct connection to the system Send and receives mesagges On theier behalf (Instg Agt = Debtor Agent) In numele unui participant indirect (Instg Agt Debtor Agent) Indirect participants (NEW!) Not directly connected to the system Identified as : Debtor Agent Creditor Agent Send and receive messages via DP only SENT Page 18 Receives messages from: Direct Participant other CSM Sends to: Direct Participant Other CSMs Routing Module (table) Direct Participant Indirect PD Other CSM Other CSMs Participant

19 New messages: RETURN and REJECT REJECT Now: Batch level only IN SEPA: Instruction, batch and file level RETURN Currently: a new CT instruction (inversed data: beneficiary vs sender) In SEPA: new mesage distinct: pacs Implementation: RETURN: SEPA and nonsepa participants to adopt SEPA message for return REJECT: depending on the participant (format, and level) Page 19

20 Agenda How the Romanian banking community prepares for payments in EURO TransFonD and SENT System SEPA project in Romania Transfond SEPA Strategy 4 SCT-RON 5 Next steps and conclusions Page 20

21 Next steps and conclusions Implement SCT RON for domestic payments Design a business model for integrating DD with e-invoicing Develop SDD-RON Clone the SCT and SDD modules for euro payments Ensure settlement arrangements for euro payments Change to euro Conclusions: SEPA will be a reality before adopting euro TFD will provide a system for all banks Page 21

22 Thank you for your attention! Question and answers Page 22