The legally-binding SEPA (Single Euro Payments Area) implementation deadline of February 1, 2014 will have a huge impact and will require companies to undertake significant IT changes. SunGard and Sentenial have identified key action areas and concerns to help corporate treasurers understand what needs to be done to be ready for the deadline:
- the legally-binding deadline is forcing corporations with eurozone operations to act now, with the realization that an inability to collect monies from customers across the eurozone may threaten future revenue and negatively impact customer relationships
- companies need to be able to verify whether a valid debit agreement is in place between the customer and corporation
- the adoption of SEPA schemes for direct debits could be an unexpectedly large project for many corporations due to the many variables involved with implementing and integrating a SEPA solution with a variety of back-office accounting and CRM (Customer Relation Management) systems
- some corporations have not adequately budgeted for SEPA projects due to a lack of understanding about the complexity of implementing a solution. As a result, these corporations may be challenged to complete their projects by the approaching deadline
- migrating existing customer records to the IBAN standard and maintaining consistency in CRM systems for both back office and customer-facing activities will be challenging due to the sheer number of records and the need to keep systems integrated
- with their massive CRM and ERP databases, large creditors could be particularly challenged to migrate and maintain SEPA-compliant mandate information
- treasurers need solutions that manage all aspects of SEPA mandates, not only to check, update and delete mandates but also to supply mandate management data every time they want to collect payments.
To help corporate treasurers address these requirements and concerns, SunGard has added SEPA direct debit capabilities to the AvantGard Trax payments solution. This new SEPA capability was developed in cooperation with Sentenial, a specialist provider of SEPA direct debit solutions for banks and corporates across Europe.
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