JP Morgan Treasury Services has announced that long-time client ED&F Man has achieved over an 80% improvement in single euro payments area (SEPA) compliant payments.

By combining JP Morgan’s communication programme to help customers format payments for improved straight through processing (STP) with ED&F Man’s own proactive approach to market changes, ED&F Man now benefits from increased efficiency and reduced costs for their payments business.

EU Regulation 2560/2001 was introduced in July 2003 with the aim of bringing the cost of cross-border euro payments in line with that of domestic payments. In response, the European Payments Council’s Inter-bank Convention on Payments (ICP) established a set of criteria stipulating how payments should be formatted for STP. Many banks have responded by imposing inter-bank charges, of varying amounts invoiced at variable times, which ultimately end up being claimed from customers for payments that do not meet these criteria.

John Watkins at ED&F Man, says, “As a result of changes in the European payments landscape, such as new international bank account number requirements and the potential for SEPA non-compliant fees to be levied, we have modified our systems and processes. We have also worked to create a more disciplined approach to payment formats and work very hard to analyse and correct any non-compliant payment formatting. JP Morgan’s approach in providing advice on the financial and formatting impacts of these new regulations has helped us see real benefits in overall STP.”

To help customers meet the demands of EU Regulation 2560/2001, JP Morgan developed a customised global communications programme, which provides tailored customer communications and dedicated customer service.

JP Morgan customers now have access to a wide range of information to help them maximise their compliant payments. This information includes formatting guides, reactive reporting which clearly outlines the reasons for payment non-compliance, and personalised advice on modifying processes and systems to mitigate charges.

Steve Groppi, business executive for JP Morgan Treasury Services in Europe, the Middle East, Africa and Asia, adds, “Multiple standards make the European payments space highly complex. Our ability to help deliver improved STP rates to our clients is a reflection of the strength of our artificial intelligence technology, our global knowledge and our partnership approach with customers.”