Has SEPA failed?

Gary

As a representative of the corporate sector, my experience of the SEPA implementation has been disappointing.

I asked my Bank about making a Euro transfer from the Company Euro account in the UK going to another Euro account within the Eurozone. The Bank concerned seemed proud that the price for such a transfer had reduced from £20 to £15 - usual 2-5 days for the transfer to be effected. Thankfully, the Bank concerned doesn't charge me £15 for a similar GBP payment otherwise my business would go elsewhere. There has also been a view passed from Bank personnel that SEPA doesn't affect the UK to a great extent because we don't use the Euro !!!!!

The other problem I have found when chatting to bank personnel at the sharp end is that they have no idea what SEPA really means and how it impacts the customer.

Finally, as for information, given that the Company has a Euro account at a bank in the UK, I find it surprising that there have been no leaflets, information brochures etc sent by the bank about SEPA and the likely impact on company business.

Just my tuppence worth, but I agree with you Gary.

Bob

Thank you Bob for this practical experience of SEPA. I suspect you not alone in this. The research I did last year on SEPA showed that Banks were involved in SEPA mystery projects with their customers not receiving any information concerning benefits of SEPA. New prices were and as your experience shows in short supply.

If the corporates are not receiving any of the benefits that SEPA was promised to deliver we must conclude that SEPA has failed. In which case SEPA is just political smoke and mirrors. What sanctions are there to force banks to deliver SEPA benefits to their customers and who is measuring that banks are delivering what SEPA promised?

I suspect we are seeing the biggest con ever!

Anyone got an alternative view? Especially banks!

Gary 

Hi Chris

Apreciate the staus of SEPA right now but we do work in a service industry and the banks appear reluctant to contact their customers with descriptions of the changes and new prices because of SEPA. Surely a project of the size of SEPA would entail more customer liason ? It makes it look like the Banks dont want it and are dragging their heels. Recent loses by banks due to the crunch might have something to do with it? Or am i being cynical?

Sepa? Next time I'll use PayPal.

Was SEPA not the industry solution to the PSD? Corporates are clearly not receiving many benefits yet, even though several months of SEPA being implemented have passed. 

EACT have been trying for years to assist with SEPA and have struggled to get their requirements accepted by the industry. So we have the legal position in place, the customers willing, but the service suppliers hovering without intent. It's not a technology issue so we must look deeper into why time is slipping away and still no evidence that banks are serious about offering new services and prices. 

You're doing a grand job in excusing the lack of SEPA benefits Chris but I must take the side of the customer and ask when do we get to the SEPA promised land?   

Wow, not sure where the Olympics came in Chris! However, as you mention like many people we are concerned with cost escalation and the ability to deliver. Heathrow 5! Just an example but we could mention the Dome, Wembley and so on. Our record just is not good.

Anyway back to the point the SEPA project must be a failure until it delivers benefits to the customer. Several months in where are they?

Do we have to waite until DD enters before we see benefits? Dont benefits accrue or do we wait years until someone declares that SEPA is complete? Do benefits only appear when the whole thing is up and running? If so why?

Like MiFID the benefits do not hit the investors straight away and until I see the industry servicing the clients to the level that the directives set as an objective, it is a failure in my book.

For all my career, there has been a concentration on delivering good services to my clients, not sitting around waiting for directives and regulations to lead the way. Call it British if you will but I will always champion client interests, the need to protect them and offer great services at an attractive price. And I truely believe something is lacking in SEPA and MiFID so far.