148022s1-8.qxd 2/27/02 11:11 AM Page 1 THE INTERNATIONAL ELECTRONIC PAYMENT NETWORK FOR POSTAL ORGANISATIONS EUROGIRO News Contents 1 / February 2002 Cheaper cross-border credit transfers Eurogiro is continuing to and card payments in EUR within EU 2 widen the network ELS operators' training ■ A new EU regulation stipulates that cross- why cross-border payments tend to be more 3 border payments in EUR within EU must be expensive to produce compared to domestic priced as domestic EUR payments. The regu- payments. It is likely to be many years - Important expansion in lation makes EUR payments significantly maybe decades - before all these areas of North America: National cheaper for retail and corporate customers, additional costs are removed, even though 3 Bank of Canada signs up thus assisting EU in its aim to create an effi- some steps are being taken. The EU is try- with Eurogiro cient internal market. Financial institutions ing to ensure that reporting requirements for face grave challenges, because handling cross-border payments are removed and the An interview with costs of cross-border payments are still much banking sector is currently working on the Mr.Arrighetti higher than domestic payments. implementation of IBAN (International 4 Bank Account Number) and BIC (Bank The aim of the EU in introducing this regu- Identification Code) that aim at creating a Deutsche Bank teaming up lation is that it will secure an efficient and uniform account structure across countries. 4 with Postal Agencies smooth internal market for financial trans- fers. Without the regulation it would have Eurogiro is ready for the changes. Firstly, The reason why Eurogiro is been difficult for EU to explain to the con- we provide a very cost- efficient payment releasing three new versions sumer why it should cost more to transfer system. Secondly, we are - in co-operation 5 of ELS each year! money from Frankfurt to Amsterdam than with Postgirot AB in Sweden - in the from Frankfurt to Hamburg, especially as process of implementing a cost-effective the common currency is now EUR. solution for settlement of EUR payments. Welcoming a giant, 5 China Post The new regulation will mean significant Although many financial institutions feel the challenges for financial institutions in the new regulation is as a challenge, both finan- Automation of searches EU. Different account structures, language cial institutions and the EU share a common 6 increased tremendously differences, different domestic payment sys- hope that the regulation can lead to increased tems, and various domestic reporting growth in general and higher cross-border requirements are just some of the reasons payment activity in particular. Hungarian Post join 6 Eurogiro Continued on page 2 Western Union 2nd EPO 7 conference in Lisbon Thanks to you…cannot be 8 said too many times… 148022s1-8.qxd 2/27/02 11:11 AM Page 2 NEWS / INFORMATION Eurogiro News is a magazine for the Eurogiro is continuing to promotion of information, ideas and knowledge within the Eurogiro community. widen the network. Eurogiro News is published quarterly by: ■ Since the November 2001 issue of the Eurogiro Newsletter, we have welcomed Eurogiro Network A/S three new members of the co-operation. Carl Gustavs Gade 3 DK- 2630 Taastrup In mid-December Hungarian Post - Magyar Posta - signed the contract, in early Denmark tel: + 45 43 71 27 72 January China Post signed and in late January National Bank of Canada signed the fax: + 45 43 71 26 62 contract, all thereby becoming members of the Eurogiro co-operation - which now e-mail: [email protected] comprises 36 members in 34 countries. Editor-in-Chief: We are very happy to welcome our new members - and happy to have widened the Søren Rose reach of the network for all members. Subscription enquiries: Filip Jensen All three new members are currently working hard with the implementation. Tel + 45 43 31 12 47 www.eurogiro.com However, not only the new members are working hard - also the current members No part of this publication may be are, as usual, working hard -implementation of the ESSP (Euro Settlement Service photocopied or otherwise reproduced Provider) is currently on the agenda. As from 1st April 2002 all members have to without the written consent of Eurogiro have signed the bilateral agreement with Postgirot Bank in Sweden, which has been Network A/S ready with the Euro Settlement Service since 1st November 2001. Printed by: Schultz Grafisk For those members who since 1st January have implemented the physical EUR as their national currency, the workload has been extraordinarily high, preparing them- Although Eurogiro Network A/S has made selves and actually delivering EUR since midnight on 31st December. Mr. Arrighetti every effort to ensure the accuracy of this publication, neither it nor any contributor from Italian Post gives his comments in an interview you will find in this issue, can accept any legal responsibility whatso- together with quite a variety of articles, which I believe you will find interesting. ever for consequences that may arise from errors or omissions or any opinions or advice I wish you an enjoyable read. given. Final editing: 15 February 2002 Søren Rose Editor-in-Chief and Deputy Managing The Eurogiro network is an international Director electronic payment network for the postal financial institutions. The Eurogiro network is the only electronic cross-border payment system which covers both postal and bank products. Eurogiro has 36 member institutions. Although Western Europe is the core area, Eurogiro now spans four continents. The electronic payment system of Eurogiro is administered by Eurogiro Network A/S in Copenhagen which also provides the organisational framework for the further development of the co-operation. The com- COMMENTARY pany is owned by 16 European members. Continued from page 1 Eurogiro Member institutions: Austria: PSK/BAWAG • Belgium: Postcheque The regulation in summary: • Canada: National Bank of Canada • Cape Verde: Correios de Cabo Verde • China: The regulation covers all 15 EU countries China Post • Croatia: Hrvastska Post • Czech Republic: CSOB a.s. • Denmark: Danske By 1 July 2002 cross- border electronic payment transactions in EUR (ATM transactions) must Bank A/S • Finland: Sampo Bank Plc • be priced as domestic electronic payment transactions. France: La Poste • Germany: Deutsche Postbank AG • Greece: Hellenic Post • By 1 July 2003 cross- border credit (account) transfers in EUR must be priced as domestic EUR Hungary: Magyar Posta • Iceland: Iceland transactions Post • Ireland: AN-Post • Israel: Israel Postal Authority • Italy: Poste Italiane • Japan: The regulation covers amounts up to EUR 12,500, but by 1 January 2006 the amount will be Postal Savings Bureau • Luxembourg: P & T increased to EUR 50,000. • Morocco: Barid Al Maghrib • Netherlands: ING Bank N.V./Postbank N.V. • Norway: Higher fees for accounts permitting cross- border transfers compared to accounts permitting only Den norske Bank • Portugal: CTT Correios • domestic transfers are not allowed Romania: Banc Post and Posta Romana • Slovakia: Postova Banka • Slovenia: Postna Member states shall remove the reporting requirement up to 12,500 EUR (and later 50,000 banka Slovenije d.d. • Spain: BBVA and EUR). Correos y Telegrafos • Sweden: Postgirot Bank • Switzerland: Swiss Post Postfinance • From 1st July 2003 all institutions shall provide IBAN+BIC on statements or on annex to Tunisia: La Poste • Turkey: General account statements Directorate of Post • United Kingdom: Girobank PLC • USA: Deutsche Bank • The customer must inform their counter party in their IBAN/BIC. This information must be pro- Yugoslavia: Postal Savings Bank of Yugoslavia. vided to prevent extra costs being added The EU shall compile a report on the effect of the regulation no later than 1st July 2004 2 148022s1-8.qxd 2/27/02 11:11 AM Page 3 INFORMATION This year's User Group meeting will be held in Copenhagen and the agenda covers many exciting issues.This year's mix of business, marketing and operational issues, coupled with discussion groups and networking, offers a wide variety of challenges for the participants. In 2002 the Eurogiro General User Group Meeting will be hosted by Danske Bank, Denmark. At this meeting the members will: Be provided with an update/status on the Eurogiro activities. Have an opportunity to influence the way forward in Eurogiro. Be able to discuss business matters with other Eurogiro members. Attend presentations by Western Union, Deutsche Bank, EBA, EU etc. ELS operators' training ■ During the installation of the Eurogiro System, training of the ed to hold a 3-day training session for the ELS operators. The train- system operators is performed on-site. Many of our members ing covered the ELS application and the services provided by the received their training up to 5 years ago and since then we have system. Interest in the training has been overwhelming and a new introduced a wide variety of new functionality and services to the session will be held at the beginning of September. At this session system. Also, the operators employed by our members occasionally we will run the training over 5 days and include system management change position and new operators are assigned. We therefore decid- issues. The ELS training in Copenhagen 11-13 February. Important expansion in North America: National Bank of Canada signs up with Eurogiro ■ On 30th January 2002 National Bank of in its core market, whilst offering spe- Canada signed the contract with Eurogiro cialised services to its clients elsewhere in Network and thereby became the 36th mem- the world. With assets of over $75 billion ber of the co-operation - and the second new and some 17,000 employees, the National member to sign in 2002. Installation and Bank is the sixth largest bank in Canada.