19 November 2012

EPC: Belgian best practice shows how to engage small and medium-sized enterprises in the SEPA migration process

There is no valid market research as regards progress among SMEs towards achieving compliance with the SEPA Regulation. The open question is whether SMEs are well aware of the need to adapt their operations in line with the requirements and by the deadlines established with the SEPA Regulation.

Considering the fact that the business activities of many SMEs are carried out within national borders or local communities, it seems unlikely that English language sources offering SEPA information specifically for PSUs, such as international trade media targeting treasurers of multi-national corporates, for example, will reach SMEs active locally. It therefore appears to be more effective to implement awareness building campaigns at national level supporting this important stakeholder group to get ready for SEPA.

The October 2012 edition of the EPC Newsletter features the article, ‘Belgium: A SEPA Success Story', which reports on the Belgian approach to coordinate SEPA migration at national level. This model is based on the following principles:

• engagement of and leadership by public authorities;
• coordination among all impacted stakeholders cooperating in the Belgian Steering Committee on the Future Means of Payment (the Steering Committee);
• timely action based on a step-by-step national implementation plan initially rolled out in 2008;
• multi-targeted communication creating SEPA awareness and educating the general public on the new SEPA payment schemes and technical standards to ensure a positive reception.

In September 2012, the Steering Committee published the fourth progress report towards SEPA in Belgium (the progress report). Chaired by the National Bank of Belgium (NBB), the Steering Committee brings together all stakeholders impacted by the SEPA process: public administrations and government agencies, businesses including SMEs, consumer associations and banks. This latest progress report showcases - again - impressive results. In July 2012, the share of SCTs in Belgium reached more than 58 per cent of total credit transfers; the share of SDDs exceeded 15 per cent. By comparison, according to the SEPA Indicators compiled by the European Central Bank, in July 2012 the share of SCTs in the euro area was 29.6 per cent; the share of SDDs remained marginal at 1 per cent.

Following successful migration by most public authorities and ‘big billers', supporting SMEs in the migration process is now the priority of the coordinated efforts to achieve SEPA compliance in Belgium. At the end of 2011, the NBB together with Isabel, the main provider of e-banking services based in Belgium, carried out a survey among 231 SMEs to find out just how prepared they were to start using SCT and SDD.

The survey confirmed the determination of the Steering Committee to focus its efforts to support the transition of SMEs. According to the progress report, the communication policy in Belgium targeting SMEs relies on the established "top-down approach: those steering the SEPA project inform the main users and user groups, who in turn pass on the information among SMEs. (...) Since Belgium has opted for a gradual approach for its migration towards SEPA, the communication activities have also evolved on a step-by-step basis, according to specific target groups. The communication strategy always revolves around a diversified approach per target group, each time with a different emphasis in terms of content."

Taking into consideration that the requirement to focus efforts on supporting SMEs has been identified in Belgium more than two years prior to 1 February 2014, which is the point in time when market participants in the euro area must comply with the core provisions of the SEPA Regulation, the expectation is that migration to SCT and SDD by smaller Belgian businesses will be completed in due time.

Full information

© EPC