Major opportunity with SEPAmail

Advantages of the European banking industry

In order to improve current exchanges and increase their dematerialisation, the banking industry has the capacity to really move due to its organisation (links of payments between banks) and to its technolgy (secure links with its customers):

Banks receive almost all the conclusion flows of the commercial acts (payment flows).

• They have implemented a multichannel face to face infrastructure with the capability to authenticate and to identify their customers
  • branch
  • unattended machines
  • remote banking
  • EDI platforms (Echange de Données Informatisées - Electronic Data Interchange)

• They own a standardised adressing mapping (Europe / Global) of all customers through the BIC/IBAN.

• Grouped in interbank networks, they are able to reach each european economic entity.

• They are used to manage large volumes and flows increase.

• Finally, they control internet technologies (access, protocols, certificates)

In addition, challenges of investments, security and standardisation are such important that this market remains difficult to join except for banks, telecom operators or governments.

Strategic positionning of the SEPAmail initiative

SEPAmail was launched by 3 banking groups (Caisses d'Epargne, Banques Populaires, Crédit Mutuel CIC) which were trusting it was an opportunity but also the responsibility of the banking industry to briging innovative solutions in this area for their customers.

In addition, convinced that bank customers should benefit from neutrality and permanent services, a cooperative approach has been preferred for standards. This ensures the continuity of bank customers habits for means of payments: indeed, a customer only communicates with its bank without considering its counterpart's bank.

This initiative has been launched in 2008 and was rapidly piloted for electronic direct debit authorisations in order to validate concepts and get other banks joining.

SEPAmail positionning is in continuity of payments industry, allowing to consider a document-based payment industry. This means the industry of the management and exchange of commercial or administrative documents, directly (or sometimes indirectly) to payments.

SEPAmail requirements

SEPAmail intends to be a means of secure electronic exchange that can be used by "individuals".

Main characteristics of its requirements are listed below:

• have the same or a higher quality than currently used systems
  • as quick as a fax or an email
  • identifying participants as well as a registered letter
  • that can be connected to technical systems
• bring an added value of authentication and trust in order to consider risks related to contexts outside the known domestic context
• keep a "low cost" approach such as email
• offer a global solution to all participants:
  • individuals, companies, administration
  • most of relationships between these participants
• enable a progressive added value while allowing a competitive space in the solution
• simplify the questions of addresses management

SEPAmail work status

A proof of concept has been set up during 2008 and 2009 and presented to the SIBOS in Vienna.

In 2010, a pilot has been organised in around fifty SFR agencies for direct debit authorisations that were controlled in almost real time after the entry at the point of sale. This pilot enabled to demonstrate the feasibility of the general concepts of the SEPAmail messaging service linked to a specific service (GEMME) to manage direct debit authorisations.

Part of the GEMME standards has been registered within the EPC as an Additional Optional Service (AOS) of the SEPA Direct Debit (SDD or European direct debit) in order to implement the Advance Mandate Information (AMI).

In 2011, a new means of payment via credit transfer has been worked on under the RUBIS code name. This service is based on the French government requirements to propose a means of payment for individuals' invoices that is initiated by the customer.

2012 should enable a RUBIS pilot with hundreds of customers from most of major French banks.