As uncertainties in the euro zone persist, the financial services industry is devoting significant resources to planning for possible market events. In parallel, the industry is preparing for migration to SEPA (Single Euro Payments Area), which needs to occur by February 1, 2014. SEPA will change the euro zone’s low-value payments and collections landscape by harmonizing the way banks make and process low-value euro payments in the 17 euro countries under a single set of SEPA Credit Transfer and SEPA Direct Debit scheme rules.
In light of these industry developments, building an optimal euro payments strategy is top of the agenda for players across the financial services industry. Our clients are focused on introducing efficient euro payments processes that ensure operational resilience and mitigate risk. At the same time, as economic and regulatory challenges place greater pressure on profitability, our clients seek top-line revenue growth and greater efficiencies across their operations.
Global euro clearing for banks
J.P. Morgan’s comprehensive euro clearing offering features a broad range of capabilities to help our bank clients achieve their goals:
Global euro cash management for non-bank financial institutionsIncreasingly, non-bank financial institutions are centralizing their treasury activities to gain benefits from economies of scale in liquidity, foreign exchange and payment transactions. Centralization of treasury can be achieved through global or regional treasury structures. In a centralised treasury environment, it is often useful to separately manage the payment transactions and liquidity management for key global currencies, such as US dollar and euro.
Overall, we recommend that treasury units of non-bank financial institutions evaluate the benefits of centralizing EUR payments and liquidity in the EU.
Your optimal euro payments strategy
As a market leader in euro solutions, J.P. Morgan is ready to support our clients with fully integrated and comprehensive offerings for their euro activity. Call your relationship manager to discuss how we can help you to achieve your optimal euro payments strategy.
J.P. Morgan's Global Euro Payments
J.P. Morgan is a committed global payments provider and the market leader in U.S. dollar payments. We leverage our strengths, experience and capabilities in U.S. dollars to provide the same best-in-class customer service and features for euro payments. Furthermore, our financial strength and operational resilience make us a trusted partner to deliver global payment services.
J.P. Morgan Euro Payments in Numbers
* based on the value in TARGET2 Germany