Corporate Finance, DeFi, Blockchain, Web3 News
Fintech, DeFi, Blockchain, Web3 Daily News by Finyear

Les flux de trésorerie des entreprises sont susceptibles d'être impactés par le projet SEPA (Single Euro Payments Area)

Business Cash Flow Likely to be Impacted by Single European Payment Area (SEPA) Regime. Genpact research shows that the recent changes in SEPA could bring in short term cash flow impact; Transforming Order to Cash (OTC) operations is critical to realising the long-term benefit of SEPA adoption. The changes to direct debit mandate processes being introduced by the Single European Payments Area (SEPA) regime are a double edged sword according to research revealed today by Genpact.

The findings from the report, ” Getting Ahead of the Competition: Maximizing SEPA Business Benefits Through OTC Transformation,” reveal that whilst the changes offer long term benefits they could potentially create short term risks to cash flow and cost of collections. Also the changes could necessitate a review and transformation of the Order to Cash (OTC) process to realise the long term benefits offered by SEPA.

The Genpact-sponsored research polled accounts receivable (AR) process managers and finance directors from organisations in 13 EU countries across five industry segments. The resulting report reveals that 67 percent of respondents believe there would be a reduction in direct debit adoption – extending payment cycles and increasing collections costs. A primary reason for this, noted by 78 percent of respondents, was the perceived issue of reduced control over payments by debtors, as the B2B scheme does not allow the debtor to obtain a refund of an authorised transaction.

These results support Genpact’s belief that transforming an organisations’ OTC process will be critical to realising the full benefits of SEPA adoption. Most respondents also indicated that the introduction of SEPA will require organisations to significantly optimize their billing and dispute management processes. Almost two-thirds of the respondents (67%) agree that the introduction of SEPA will require organisations to make investments for their customers to review and approve the bill efficiently.

“Businesses need to be aware of the likely impact that the recent changes to SEPA pose. Our research predicts reductions in direct debit payment rates. The consequential impact of having fewer direct debit payments needs to be factored into short term planning for managing cash flows and the cost of collection” said Prakash Hariharan, Vice President, Order to Cash Solutions for Genpact. “Organisations that work now to optimise their order to cash processes, particularly in billing and dispute management processes, will be able to proactively address the reluctance of customers to pay by direct debit, minimising the impact of the SEPA changes and will stand to benefit from faster intra-Europe payments.”

Survey Details
Genpact’s research report, “Getting Ahead of the Competition: Maximizing SEPA Business Benefits Through OTC Transformation” can be downloaded from:

About SEPA
SEPA aims to create a single common market within Europe where individuals and corporations will be able to send and receive euro payments across Europe as quickly, easily, and inexpensively as if they were operating within their own home market. SEPA includes the 27 European Union member states, Norway, Iceland, Liechtenstein, Switzerland and Monaco.
For complete information on SEPA, visit

About Genpact
Genpact, a global leader in business process and technology management services, provides the science behind superior business processes. Genpact’s unique process thought leadership captured in its Smart Enterprise Processes (SEPSM) framework, combined with deep industry domain expertise, delivers better business outcomes across the enterprise, rather than simply providing efficiency gains within a single function. Driven by a passion for process and operational excellence based on its Lean and Six Sigma DNA, Genpact’s 51,000+ professionals around the globe deliver world-class business process management services. Genpact also enables companies worldwide to make smarter decisions, helping them to drive revenue growth, compete more successfully, mitigate risk effectively, and improve operating margins and working capital. Genpact’s Smart Decision Services deliver business insights to its clients through targeted analytics, reengineering expertise, and advanced risk management for better business decisions. And finally, Genpact makes technology more intelligent by embedding it with these process and data insights. Genpact delivers all of these solutions everyday to its more than 600 clients – from a network of 51 delivery centers across 17 countries supporting more than 25 languages. For more information, visit Follow Genpact on Twitter, Facebook and LinkedIn.

Jeudi 20 Octobre 2011