Payments Transaction System (PTS)
Support global payments transaction business and stay compliant.
Banks and financial services providers are facing the burden of ever-changing regulation of the financial market, as well as the need to manage ever-present cost pressures. As a consequence, there is demand to consolidate cash management processes for corporates and bank branches across the globe.
The Single Euro Payment Area (SEPA) will harmonize and standardize much of Europe's cross-border and national payment transaction infrastructures. In Europe a total of 17 Euro (€) countries will adopt the SEPA payment process and its products, replacing the diverse national payment systems by August 1st, 2014 at the latest. They'll be joined by an additional 16 non-Euro (€) countries.
The emergence of SEPA presents both a challenge and an opportunity for banks. Payments products can deliver upwards of 60-percent of total revenues for some banks and the new standards will fundamentally alter those products -- not just for firms based within the Eurozone, but for any bank offering payment services in the Euro currency.
CSC's Payment Transaction Software (PTS) is a standard but customizable software suite with a Web front end that enables banks to adapt for clearing and settlement requirements without a major investment. It delivers efficient and cost-effective straight-through processing of global electronic payment transactions.
Developed in close cooperation with our customers, the PTS product family allows banks to select routing strategies for payments according to settlement instructions and agreements. PTS efficiently supports:
- National, European and global payment transaction processes
- Cross-border and domestic payments
- Mass and high value payments in any currency
More than 50 customers in twelve counties are using PTS already - from national and international credit institutions, transaction banks and financial service providers to public authorities.
MORE ON THE IMPACT OF SEPA
The new system represents a paradigm shift in the European banking industry's competitive environment and fee structure. It transforms the individual national retail payment markets into one pan-European market with massive implications for both the corporate and public sector.
When addressing SEPA, banks must concern themselves with the following:
- How to replace lost revenue, resulting from lower cross-border payment transaction charges
- An influx of new competitors
- Compliance costs
- Investing in technology to exploit new opportunities
Facing an increasingly competitive environment with reduced margins, banks cannot afford to take a passive approach when addressing SEPA's imminent arrival. Too many opportunities exist to increase revenue and tap into new markets. To that end, banks will need to develop a host of new revenue-earning, value-added services to help customers realize the full potential of SEPA.
Doing so will require banks' to view the payments arena as more than just a banking process, but as a cost lever of strategic importance. Perhaps more challenging, they'll need to get their customers thinking along those same lines. Without a basic shift in perception about how cutting banking transaction costs and speeding the flow of funds can affect performance, banks and their corporate customers will not be willing to invest time and resources necessary to develop strategies to leverage SEPA successfully.
From the perspective of the banking industry's customer base, SEPA represents an opportunity to reduce costs, realize organizational efficiencies and maximize returns. Studies suggest that SEPA could save the European economy between €50bn and €100bn per year, as companies and public authorities will be able to process payments and direct debits within Europe with more automation and far less complexity.
Banks then must support a wider business strategy around payments with appropriate technology which can enable:
- the development of new products and services to help corporate customers' exploit SEPA
- the creation of new bank-to-bank business through sharing or outsourcing payments services
- the improved profitability of many types of customer transactions
MORE ON THE PTS FAMILY OF PRODUCTS
Product: Bulk Payment Transactions Solutions
- PTS/BULK: PTS Bulk is an ISO-20022-based solution for bulk European payment transactions which also contains SEPA CT (SEPA credit notes) as well as SEPA DD-Core, Cor1 and B2B (SEPA direct debits). Enhancements for processing of national payment transactions in non Euro countries like Czech Repubilc, Hungary or Switzerland are available.
- PTS/MMG: PTS Mandate Management is a solution for the administration of SEPA mandates. This application is used in combination with the payment transaction systems of our customers for data enrichment before collecting SEPA direct debits or matching of presented direct debits.
- PTS/SMV: SEPA test tool SEPA Message Validator with message format validation. The clearing simulator of EBA Clearing Step2 and SEPA Clearing of Deutsche Bundesbank supports all SEPA clearing formats and significantly reduces the test effort of the banks participating in SEPA.
Product: Individual Payment Transactions Solutions
- PTS/CURR: PTS Currency is a SWIFT-based multi-currency payment transaction solution for connection to TARGET2, EBA Clearing (EURO-1, STEP2) and the worldwide correspondent clearing. Enhancement for international cheque collections available.
Product: Bulk and Individual Payment Transactions Solutions
- PTS/A&R: PTS Analysis & Routing is a module for the overall BIC-based payment transaction (TARGET2, EBA clearing, correspondent clearing and SEPA).
- PTS/HIST: PTS History is a Web-based history system with user interface for administration of complaints; interfaces to PTS/BULK, PTS/CURR and PTS/A&R in place; connectivity to other payment transaction systems possible.