SIBOS 2015: Payments in motion

At SIBOS in Singapore traditionally SWIFT is starring and EBICS plays a supporting role. Nevertheless, the interest in the use and the future development of EBICS was great. More than 8000 visitors came to the exhibition at the Sands Expo and Convention Centre. This made SIBOS in Singapore the biggest event in Asia and the second largest in the world. The prevailing topics show that there are going to be even more major changes in payments.

 

EBICS BTF

Switzerland joining the EBICS community means that the spread of EBICS continues apace. Until now, two EBICS dialects have been used: in Germany and in France. The Swiss will now add another one. To open up EBICS to other countries, a harmonisation will take place: EBICS BTF.
The background to EBICS BTF is the intent of all three countries to develop a uniform EBICS standard. Work on it is proceeding full speed ahead. Watch this space for more information on EBICS BTF.

Digitalisation

Payment transactions are highly automated in some countries. The processes for payments are almost completely digitalised, include one or more partners and reach far beyond their own system boundaries. Typical examples are SWIFT and EBICS, which can be used to exchange structured information between partners.

Other areas of banking could also benefit from the experience gathered in payments. The high degree of digitalisation could be used for loans, guarantees or documentary transactions, for example. This seems set to be the trend for the next few years.

Backing up payment flows

The amounts of money in payment transactions are astronomical. TARGET 2 handles nearly a quadrillion euros each year – that’s a one with fifteen zeroes! Obviously, the wheels of payment cannot stand still.

That’s why calls for backing up payment flows are growing. EBICS is pretty much the natural partner for SWIFT. The first rumours are circulating that recommendations will be made – and these will only be recommendations at present – to back up the digital transfer of money with a second transport mechanism.

Regulatory changes

In the past, payment has been dominated by regulatory requirements. The best examples are SEPA and ISO 20022. We estimate that in the next two years, there will be around 30 new trends and projects in payments – most of them driven by the regulators. The impacts on IT range from the deposit systems to the clearing system to the core banking system. In fact, all systems involved in payments will be affected. So it will not become boring.

Michael Lembcke

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