JULY 05 2018
Tags: capital markets

News from EBAday – interesting times ahead for the payments ecosystem

EBAday, the main event in the European banking community calendar, organised by the Euro Banking Association, took place in Munich on 12th and 13th June. At this year’s event, over 1,200 senior representatives from leading banks and financial institutions had the opportunity to learn, discuss and debate about the emerging trends and the new paradigms of the payments ecosystem. Hot topics on the table included Brexit, Instant Payments, PSD2 and GDPR, bringing about the extraordinary wave of regulatory and market changes that have swept through the financial industry over the last three years. These changes are having a monumental impact on the industry and are giving rise to new types of competition and new challenges. Challenges that not all actors have got to grips with yet.

The event drew participants and attendees from commercial and investment banks, central banking institutions, and included both new entrants and incumbents, technology and application providers, consultants and market analysts, as well as key figures from the corporate world. All spent the two days alternating between the richly-packed, lively sessions covering the key topics of this year’s conference, and engaging with exhibitors at their stands.

The area of Liquidity Management generated much interest and positive feedback at the TAS Group stand, a main exhibitor of the event for several years. Compared to previous editions, a matured level of understanding on the key aspects on liquidity and collateral management was evident, both for heads of the Bank Treasury and for the managers of Cash Management services to the corporate world. This increasing level of knowledge and engagement has been somewhat accelerated by the evolution in Instant Payments with RT1 and TIPS, and on the horizon, the T2 / T2S Consolidation project.

It’s clear that banks that provide services to corporate treasuries want to control the supply of intraday credit. This desire for more control is not only being driven by regulatory changes, but also by the need to meet strategic objectives such as improving efficiency.

There were also some interesting discussions around TAS Group’s experience, acquired working on a first integration of the Aquarius treasury solution with EBA’s RT1 pre-funding mechanism.

Lastly, many took part in the surveys carried out via app during the key conference sessions, which delivered some interesting insights. According to the responses, over 89% said they believed that real-time payments will radically change the way in which companies manage liquidity, and more than 65% said they believed that in the next 12-24 months, corporations will invest in improving their cash flow forecasting capabilities, making use of the emerging application and technological innovations.

All in all, a very valuable experience, with some really encouraging insights gained.