SEPA end-date &

Corporate Access

Webinar 9 December 2015

• Vendor-bank cooperation is important to create

great customer experiences

• Ensure win-win-win

• Nordea’s proactive approach

• Seminars during 2014

• Nordic newsletters

• Webinar today (and onwards)

• Websites updated with information

and tools

Welcome

Webinar organizer:

Mikael Kepp, Vendor relationship management

12/15/2015

2 •

Agenda

SEPA End-date – what is the law and what

are the practical implications

Speaker:

Carsten Thaarup

Chief Expert - Infrastructure

Corporate Access – Nordea’s new payment and

file transfer solution

Speaker:

Per Nordkvist

Global Business Developer

Migration activities – moving customers to new

SEPA compliant solutions

Speaker:

Hans-Erik Forsgren

Global Business Developer

12/15/2015

3 •

• This webinar will be recorded

• Microphones are muted for all

participants

• Questions are very welcome

• Please use the

question feature

• All questions/answers will be

circulated to all participants

afterwards

• Slides will also be circulated afterwards

Practicalities

Microphones are

muted

12/15/2015

4 •

Carsten Thaarup, Cash Management

9 December 2015

SEPA End-Date

Regulation

Main impact of the EU Regulation

Agenda – SEPA End-date

• Background for the SEPA End-date

• Essential dates and impact

• SEPA Credit Transfer changes expected in the future

12/15/2015

6 •

• Background for the SEPA End-date

• Essential dates and impact

• SEPA Credit Transfer changes expected in the future

Background for SEPA End-date Regulation

12/15/2015

8 •

• Lisbon agenda

• Missing aligned regulation → PSD (Payment

Service Directory)

• SCT introduced during 2008

• SCT – ‘the obvious choice’

• This was not achieved

• No benefits for most stakeholders

• Therefore The SEPA End-Date Regulation

Migrating to the Single Euro Payments Area

– Key dates

2014

* As of these dates, existing national euro credit transfer and direct debit schemes will

have to be phased out and replaced by SEPA alternatives.

1 February 2014 *

**

The final deadline for the euro area

BIC no longer required for national euro payments

ISO 20022 XML to be used for file-based transactions to and from customers

1 February 2015 Migration deadline for Direct Debits in Latvia

1 February 2016 No BIC to be required for cross-border payments (euro-countries); niche

products migration complete

XML formats mandatory – conversion services must be held outside banking

systems.

31 October 2016 * The deadline for euro-denominated payments in non-euro area countries

BIC no longer required for cross-border euro payments

All national euro direct debit schemes migrated to SEPA Direct Debits

schemes

**The Commission has adopted a proposal to give an extra transition period of six months during which payments which differ from the SEPA format can still be

accepted so as to minimise any possible risk of disruption to payments for consumers and businesses. The proposal does not change the formal deadline for migration

of 1 February 2014.

1 February 2015

Migration deadline for

Direct Debits in Latvia

1 February 2016

No BIC to be required for cross-border payments

(euro-countries); niche products migration complete

XML formats mandatory – conversion services must

be held outside banking systems.

31 October 2016 *

The deadline for euro-denominated payments

in non-euro area countries

BIC no longer required for cross-border euro

payments

All national euro direct debit schemes

migrated to SEPA Direct Debits schemes

* As of these dates, existing national euro credit transfer and direct debit schemes will have to be phased out and replaced by SEPA alternatives.

2015 2016

1 February 2014 * **

The final deadline for the euro area

BIC no longer required for national euro

payments

ISO 20022 XML to be used for file-based

transactions to and from customers

12/15/2015

9 •

SEPA End Date Regulation plus six months!

• Reachability throughout for euro countries

• No longer possible to require an account to be located in a specific country

• Amendment to EU Reg. 924/2009 ~ Same price for € payments below and above €50k 31 March 2012

• Multilateral Interchange fees for cross-border direct debits not allowed 1 November 2012

• Request for derogation until 1 February 2016 of smaller credit and direct debit transactions in a member state, for use of IBAN in the domestic market, use of XML etc. 1 February 2013

• ISO 20022 XML to be used for file-based transactions to and from customers

• BIC no longer required for national euro payments

• Technical interoperability between Payment Service Providers ensured 1 February 2014

• Euro based countries: BIC no longer required for cross-border euro payments 1 February 2016

• Non-euro based countries: BIC no longer required for cross-border euro payments

• Reachability for even non-euro based countries 31 October 2016

• National Direct Debit Interchange Fees abolished 1 February 2017

Er her brugt farvekode

fra kritisk/ikke kritisk vha

forløb fra grøn over

orange til rød?

12/15/2015

10 •

Additional customer-to-customer (C2C)

information

Proposal: Additional C2C information available

outside of the SCT/SDD message into a separate

message

Additional customer-to-customer (C2C)

information

Proposal: Expand the current 140 characters up to

say 1000 characters. Put more emphasis on using

structured remittance information

Customer-to-Bank Implementation Guidelines

(C2B IGs) to become mandatory

Proposal: Make the current ‘recommended-only’

C2B IGs mandatory

Expected Possible Changes for the SCT Scheme

12/15/2015

11 •

Corporate Access

The first-class solution to upgrade

our customers’ payment processes

Per Nordkvist 09/12/2015

Agenda – Corporate Access

• Why introduce a new file-based payment service?

• What is the benefit for customers?

• How will it work?

• Things ERPs & customers need to be aware of

12/15/2015

13 •

• Why introduce a new file-based payment service?

• What is the benefit for customers?

• How will it work?

• Things ERPs & customers need to be aware of

Cash Management trends our driver for development

Treasury Centralisation

Increasing Globalisation

Payment Commoditisation

Fast-shifting Technology

SEPA Compliance

Streamlining SME biz

Financial Crime Business Intelligence

E-Commerce

12/15/2015

15 •

• Why introduce a new file-based payment service?

• What is the benefit for customers?

• How will it work?

• Things ERPs & customers need to be aware of

This is a standard

“Chapter Divider“ to

support the agenda

slide

Corporate Access

Make your payment

flow efficient

• One file for all payment types, regardless of

currency

• One user interface

• One common solution for SE, NO and DK *

• One support

• Compliant with regulatory legislations e.g. PSD

and SEPA Rule-book

• Enhanced security solution

• Integrated with your ERP-system

1

* = Finland & Baltic’s to be included in future releases

12/15/2015

17 •

• Why introduce a new file-based payment service?

• What is the benefit for customers?

• How will it work?

• Things ERPs & customers need to be aware of

This is a standard

“Chapter Divider“ to

support the agenda

slide

Corporate Access solution overview

Corporate Access

Corporate Access FileTransfer

Communication,

Archive

Corporate Access Payables

Warehouse,

Validation, Release

ERP / Accounts Payable Corporate Netbank

User interface

Files Payments

Payment Systems

Corporate Netbank

Administration

User Admin

A) + B) Monitor files

Monitor payments

Cancel & Confirm *

A) Automated sending

of payment files B) Manual File Transfer

A) & B) = Optional solution

how to transfer payment files * = Option “Correct” to be included in future releases

12/15/2015

19 •

• All payment types

• Domestic and International, supplier, salaries, pensions, taxes and

intercompany payments

• All currencies

• Supports all currencies and payments from currency accounts

• One format

• ISO20022 XML *

• pain.001.001.03

• pain.002.001.03

• camt.054.001.02D

• Communication methods

• H2H (AS2, FTP/VPN, SFTP)

• Corporate Netbank File Transfer

* = camt.055.001.01 (Cancellation) to be included in future releases

1

12/15/2015

20 •

Easy

• Known user interface, easy to use

• SEPA-compliant file format

• Accessible via Corporate Netbank

• Help texts in five languages

• View, confirm and cancel files

• View and cancel single payments

• Confirm alone or two together

• View file status

• File & payment history for 15 months

• Download of status file (pain.002.001.03)

to update your ERP-system

• Download of debit advice (camt.054.001.02)

to update your ERP-system

12/15/2015

21 •

• Efficient payment process

• Available 24/7

• Quick and secure processing of payments

• Secure equal information in own ledger/bank

• Continuously updated ledger

• Efficient feedback on status

• ”Immediate” return of status file

• Debit advice returned after settlement of payment

• Possible to do reconciliation on daily basis

Efficient

* = Other file-based services provided by Nordea, such as credit advices,

account statements, etc. will remain un-changed incl. current down-load options

12/15/2015

22 •

• Why introduce a new file-based payment service?

• What is the benefit for customers?

• How will it work?

• Things ERPs & customers need to be aware of

This is a standard

“Chapter Divider“ to

support the agenda

slide

• Corporate Access Payables

• ISO20022 XML format for Corporate Access

• Payment service and payment types

• Corporate Access File Transfer

• Secure Envelope creation for Sender & Signer Id’s

• Signature procedure to Sign enveloped files.

• File communication via H2H protocols (enabled via

Corporate Access File Transfer agreement)

• Certificate Management:

• Download/Store/Maintain.

• Authorisation of Signer Id in ERP system

• Authorisation for users to confirm payments in ERP

system

Requirements upon ERP systems

Note: Mandatory to provide

Note 1: Mandatory to provide when H2H protocols used.

Note 2: Optional to use (either envelope and/or Signature) when

Corporate Netbank File Transfer used. If not provided manual

confirmation mandatory.

12/15/2015

24 •

Nordea’s Corporate Access Payables XML MIGs

Nordea’s MIGs are constructed as recommended by local Nordic/Baltic Bankers Associations.

Note: Current “SEPA” MIG as used by “in-Euro”

countries do not cover domestic payment types within

the Nordic area, i.e. ERP’s & customer’s must adhere to

Nordea’s guidelines (MIG’s).

12/15/2015

25 •

Nordea provides a web-based Test Tool, which will

enable customers and ERP vendors to:

Validate Envelope structure and content

Check correct ISO20022 syntax

Validate general ISO/CGI business rules

Validate Nordea specific business rules

Receive immediate information about potential

errors *

XML Test Tool for Envelope and XML Message content

Corporate Access Payables:

Envelope, Sweden and Norway available.

Denmark expected launch by January 2016

* = Status reporting (pain.002.001.01) and Debit advice reporting

(camt.054.001.02) to be included in future releases.

12/15/2015

26 •

Note: Nordea’s new file-based payment services will for the future replace all

current file-based payment offerings (incl. formats)

Corporate Access

XML

XML

XML XML

XML

XML

XML

File based payments in EUR

only available in ISO20022 XML

after 31 October 2016

12/15/2015

27 •

Thank you

Per Nordkvist

Migration Activities

Hans-Erik Forsgren

Agenda – Migration Activities

• Who to migrate?

• Alternatives?

• Time schedule

• How to do it?

12/15/2015

30 •

• Who to Migrate

• Alternatives

• Time Schedule

• How to do it

This is a standard

“Chapter Divider“ to

support the agenda

slide

Who are affected and in scope for migration

• Customers sending file based Euro payments in local formats

• Migrate all customers sending file based Euro payments in local formats

end of October 2016

• Customer sending file based Euro payments in Edifact format

• Migrate all customers sending file based Euro payment in Edifact format

end of October 2016

12/15/2015

32 •

This is a standard

“Chapter Divider“ to

support the agenda

slide

• Who to Migrate

• Alternatives

• Time Schedule

• How to do it

Recommendation to be SEPA compliant

AS-IS

LOCAL FORMATS

Outgoing payments, file

based payments sent in local

format for DK, NO and SE

1. XML only (The recommended option)

Customer has chosen to send all (both non-EUR and EUR) payments in

XML

TO-BE: Options on how to be SEPA compliant

2. LOCAL FORMATS

Customer has chosen to send non-EUR payments with remaining local

formats. EUR payments will be entered manually via Nordea netbank.

(no EUR file based payments)

3. LOCAL FORMATS & XML

Customer has chosen to send non-EUR payments with remaining local

formats and EUR payments in XML

12/15/2015

34 •

Services to migrate in the Nordic countries

File based EUR payments

Corporate File payment (CFP)

Leverantörsbetalningar

Interpay

Telepay

EDIFACT

Unitel EDI (EDI/4 and EDIFACT)

Services to migrate from Service to migrate to

12/15/2015

35 •

This is a standard

“Chapter Divider“ to

support the agenda

slide

• Who to Migrate

• Alternatives

• Time Schedule

• How to do it

High level actions

2015/2016

Dec

General SEPA information to customer in Nordea channels

Webinar ERP vendors

Jan Feb March May April Oct

Migrate Edifact customers to XML

DK

Migrate information to customers

Migrate customers sending file based Euro payments in local formats

NO SWE

12/15/2015

37 •

This is a standard

“Chapter Divider“ to

support the agenda

slide

• Who to Migrate

• Alternatives

• Time Schedule

• How to do it

Mutually dependent

Nordea

Customers Vendors

Enable

compliant

payment

solution

Deliver

compliant

ERP

solution

Implement

compliant

ERP

solution

12/15/2015

39 •

Customers way to compliance

12/15/2015

40 •

Nordea

Customers Vendors

1. Receive general information about

SEPA regulation and Nordea

migration activities

2. Receive targeted information about

how to get on-boarded to Corporate

Access

3. Dialogue with vendors for getting

technically ready compliant

solution

4. Solution dialogue with Nordea and

collection of information for

agreement

5. On-boarding and welcome package

Vendors way to Nordea compliant solution

12/15/2015

41 •

Vendors

Nordea

Customers Vendors

1. Newsletters

2. Access to technical documentation

and test tool

3. Webinar

4. Technical webinar

5. Develop and test via test tool

6. Contact with Nordea vendor support

for test/validation of solution

7. Jointly establish a common

approach towards customers for

delivering the best adapted support.

8. Implement SEPA compliant

solutions with customers

Key factors to succes

12/15/2015

42 •

Nordea

Customers Vendors

1. Mutual commitment

2. Communication

3. Alignment of expectations

Thank you

Hans-Erik Forsgren

• Visit www.nordea.com/vendors to get all

relevant information about formats, connectivity

and security

• Plan when to start implementation of Corporate

Access in your corporate solutions

• Take advantage of the test tool for efficient

testing of formats etc.

• Contact erpsupport@nordea.com for support,

e.g. regarding:

• Documentation

• Testing tool

• Sharing information about

• your implementation plans and

• confirmation when it has been tested

and launched successfully

• As mentioned we will distribute:

• Presentations from today’s webinar

• Questions and answers

Summary – next steps

12/15/2015

44 •

Thank you

Carsten Thaarup

Per Nordkvist

Hans-Erik Forsgren

Mikael Kepp