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EBA CLEARING’s RT1 system for SCT Inst processing goes live in ONE WEEK

The build up to the launch of SCT Inst Scheme is gathering pace. At SIBOS EBA Clearing said they have 39 banks helping them develop it, 25 will operational when the system goes live on 21 November 2017. In 2018 EBA expect: 50 live by June 2018, and around 100 by November. 

Participants from nine countries have committed to joining RT1 already in 2017, extending SCT Inst reach to over 325 PSPs.

IBERPAY will be ready

IBERPAY and EBA CLEARING announced today that the Spanish retail payment system is ready to provide Europe-wide instant payment connectivity to Spanish banks with the support of IBERPAY’s CICLOM platform and EBA CLEARING’s RT1 system. By connecting to RT1, IBERPAY will enable Spanish banks to use the EBA CLEARING system for their cross-border euro real-time payments from the launch of the SCT Inst Scheme, on 21 November 2017.

IBERPAY will be one of the first national providers of clearing and settlement services that will connect to the pan-European instant payment infrastructure platform RT1 as a technical service provider. This arrangement will allow banks in Spain to exchange transactions with the growing SEPA-wide payment service provider (PSP) community, addressable via EBA CLEARING’s pan-European instant payment system. 

Bank justification for SCT Inst - the big WHY and HOW

For banks, the plain fact is that consumers are increasingly adopting real-time / instant payments and banks have to react. The banks have very different business reasons why and how they are connecting to SCT Inst. The main driver seems to be: “If we don’t, others providers will and we will loose business.”

BUT just adding an instant payment facility doesn’t get the bank very far in coping with what is happening in the consumer and business space where the basic business models are changing:

  • Consumers and businesses expect service now, or next day at latest
  • Subscription payments for all sorts of services, e.g. Spotify for music streaming, is being adopted in all sorts businesses, for e.g. TMS, payment hubs, and etc. see.
  • The digital world is very different. Chris Skinner, FSClub, is loosing patience, today he wrote:
  • “I know that digital demands a rethinking of the business model of the bank, as the banks’ business model doesn’t work in the digital age. In fact, when banks talk about channels – a digital channel – I know they don’t get it. Channels is the old business model that layers itself on top of transactions. Access is the new business model that starts with the customers’ digital footprint. The two models are opposites as one requires a transformation whilst the other is just banking-as-usual faster and cheaper.”

CTMfile take: Corporates need banks that ‘get it’. Those that don’t will disappear in the digital age, not immediatley, but they will.


This item appears in the following sections:
Payments - Making
Accounts Payable Management
Making Urgent Payments
Collecting Payments on the Internet
Collecting Payments via Mobile

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