19 April 2007

European corporates unimpressed by bank payments initiatives

Large European corporate treasuries are largely unmoved by the shift to a single euro payments area (Sepa) and are unimpressed by other banking-led connectivity initiatives such as direct access to SwiftNet, according to a study by consulting firm Treasury Strategies.

The survey of 511 companies from across Western Europe found that nearly 60% of European companies do not consider preparing for the introduction of Sepa as a 'high priority'.

Furthermore, fewer than 30% of respondents are interested in key banking initiatives such as direct Swift connectivity, globalisation of messaging standards and continuous linked settlement.

Stephen Baird, principal with Treasury Strategies and leader of the research programme, says: 'The low level of interest or familiarity among many European companies with key industry initiatives - particularly Sepa and SwiftNet - raises the question of whether banks are adequately focused on getting their clients ready for these changes.'

The consultancy warns that if caught unprepared for Sepa, a treasury department could find itself unable to efficiently execute payments and may incur higher bank fees.

© finextra