| Banks slow with PSD implementation |
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| Tuesday, 22 April 2008 | |
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Page 2 of 2 Additional results of the Logica study show that whilst all banks surveyed already have PSD programmes in place, over 75 per cent of respondents will not commence implementation work to support PSD until 2009.This is because the substance of the local law transposition of PSD will not be known earlier. Commercial benefit Given the complexity of the payments products currently offered across geographies that were identified by respondents, this may not be sufficient to enable banks to exploit these necessary changes for commercial benefit. Slava Gnevko, senior payments manager at Logica, added that if Banks wished to gain benefits from the changes imposed by the PSD they simply could not afford to wait until next year to begin implementation. “If compliance is going to be achieved, then work has to begin now based on what we already know and to a certain extent, a ‘best-guess’ of how the transposition will turn out. Elements such as ‘crash’ impact analysis and business requirement studies are substantial projects and whilst it is encouraging to see that these are already happening, they must be completed in the next few months so that estimated numbers and changes can be fed into 2009 budget cycles,” Gnevko added. Gnevko pointed out that for some national communities the detail of their national PSD text may only become available in 2009, however, the main legislative changes are already clear. Simplifying and consolidating offerings Bailey added that Logica’s practical experience of managing programmes of change in payments, and those for SEPA in particular, suggests that banks need to embark on their PSD programmes now to be in time for the November 2009 deadline and to seek to exploit these for business benefit. The survey confirmed the complex mix of payments products offered by respondents. More than half of the respondents run ‘five or more payments services per channel’. This presents banks with an n-factorial assessment and implementation challenge to apply national legislative requirements of each country to all existing and planned services. Logica’s analysis of the survey findings suggests that banks may gain benefit from simplifying and consolidating their offerings and channels to reduce the compliance effort, cut cost and improve consistency of service. Gnevko said that to comply with the PSD in time and to exploit the potential for simplification banks need to establish a cross organisational Programme Management Office (PMO) for PSD and SEPA with clear group level ownership. “The case for consolidating their portfolio of product offerings to keep costs in control and run efficient operations can then be made from a group perspective,” Gnevko concluded. Related articles Related links |
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