Challenges to achieving operational excellence, particularly in Europe

Abstract

The paper investigates the interconnection of the Single Euro Payments Area (SEPA) with ISO 20022, and the objective of migrating the payments market off SWIFT MT globally, and off-legacy national data formats in Europe, onto the ISO 20022 ‘standard’. Readers need to appreciate the reasons for the slow take-up of ISO 20022 and for the slow progress towards SEPA, and how an acceleration of the process via the setting of a mandatory end date for migration could backfire. The SEPA frameworks contain many safety valves through which national variations can persist. The environment is becoming increasingly complex and nuanced, with reducing income and new competition. Readers will be able to see the European Commission’s long-term aims in the context of these developments and all the better appreciate the disconnects in the process — disconnects that will complicate the achievement of operational excellence in the payments business.