HSBC is implementing the Dovetail Payment Services Hub for its European volume payments system. The hub will initially process single euro payments area (SEPA) Credit Transfers (SCTs) and SEPA Direct Debits (SDDs), as well as automatically managing both debtor and creditor mandates across 11 countries. The project supports HSBC's expanding European presence and underscores the bank's readiness for, and it says its commitment to, the upcoming SEPA end date regulation set for February 2014.
With the certainty of the SEPA end dates now in sight, HSBC’s corporate banking customers are looking at how they can rationalise and streamline their payments operations in and out of the eurozone in a fully SEPA-compliant world. The project will improve HSBC’s payment clearing services and value added capabilities and is not just a compliance exercise, says the bank.
Enrico Camerinelli, a senior analyst at the Aite Group consultancy, sees the implementation project as significant because it confirms that banks are now acting to meet the SEPA deadline of February 2014. "This announcement clearly confirms that the established end date for SEPA is forcing banks to act,” he said. “My expectation is that HSBC will use the solution for Europe to start with, and then extend it to Asia where its presence is very strong.
"At that point, the payments hub will have to embed foreign exchange (FX) and cash management services to handle currencies in countries where expatriation of funds is controlled," added Camerinelli.