Thoughts about the future role and activity of the Hungarian ACH - - PowerPoint PPT Presentation

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Dec 11, 2023 474 likes •635 views

Thoughts about the future role and activity of the Hungarian ACH (alternatives & chances) Budapest, 21st October, Giro Ltd. Hungary 1 2005 Historic Momentum Second largest change in the payment system since ACH operates Great

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Budapest, 21st October, 2005 Giro Ltd. Hungary 1

Thoughts about the future role and activity of the Hungarian ACH (alternatives & chances)

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Budapest, 21st October, 2005 Giro Ltd. Hungary 2

Historic Momentum

Second largest change in the payment

system since ACH operates

Great opportunity to redesign and design

the global payment system in favour of the customers and efficiency

All participants have to think and act

together

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Budapest, 21st October, 2005 Giro Ltd. Hungary 3

What is the current status ?

Domestic clearing – 98,5% +
Currency – HUF
57 Clearing Members – State Budgetary,

local entities, foreign ones (incl. branches)

Smooth, reliable, robust service
11 years old system

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Budapest, 21st October, 2005 Giro Ltd. Hungary 4

Expectations of the Stakeholders

Clients – Companies
Banks – Clearing Members
Central Bank
State Budgetary - Governmental Institutions
Shareholders of the ACH

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Budapest, 21st October, 2005 Giro Ltd. Hungary 5

What to do - Alternatives

Keeping-up the current service
Building up a PEACH
Building up an up-to-date solution
Alliance with a potential PEACH, or ACHs

to form a PEACH

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Budapest, 21st October, 2005 Giro Ltd. Hungary 6

Keeping-up the current service

– Until HUF exists – providing service – Let the Banks find their way – Gradually ceasing clearing activity – What will happen with State Budgetary and small local Financial Institutions?

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Budapest, 21st October, 2005 Giro Ltd. Hungary 7

Building up a PEACH

Building up an all-round PEACH
Investment and running cost vs. Revenues
Efficiency – Potential Market Share

It is clearly not an alternative at the current status

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Budapest, 21st October, 2005 Giro Ltd. Hungary 8

Building up an up-to-date solution I.

Local service until HUF and beyond
Development of payment services
Possible parallel dual currency EURO-HUF
Satisfying SEPA as EURO out EU member
Providing transfer to EURO-in status
Tools to be local, while potentially can

become global

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Budapest, 21st October, 2005 Giro Ltd. Hungary 9

Building up an up-to-date solution II.

Seems to be the solution due to:

– Having a new and flexible system – Saving time – getting ready by the time EURO introduced, SEPA and regulations (standards and local laws) will be in place – Connect-ability to allied partners (PEACH) – Efficient local system / saving cost – Providing time and solution for all participants

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Budapest, 21st October, 2005 Giro Ltd. Hungary 10

Alliance with a potential PEACH

–Involve the local market to a bigger one –Utilising synergies, volumes –Easy and efficient compliance with SEPA –Hungary as regional consolidator –Alliance, Merger – fusion, etc. –Laws, owners, Central Banks, potential partners interests

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Budapest, 21st October, 2005 Giro Ltd. Hungary 11

Uncertainties in Making Decision

Hungary in EURO zone – We have to be ready by

then (Overriding principle)

Standards – how to convert current workflow,

laws and regulations, technical changeover by participants

Can investment be recovered ?
Realisation of SEPA and TARGET2
How big and foreign own banks will act? How

ACHs will react?

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Budapest, 21st October, 2005 Giro Ltd. Hungary 12

GIRO’s Opinion

Change of the Current Software
Maintain high standard of service
Not to be a PEACH
Looking for a potential alliance
Finding out the future role
Become a Regional consolidator
Time frame: 4 – 10 years

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Budapest, 21st October, 2005 Giro Ltd. Hungary 13

Fora for discussions

FRF forum (Local version of EPC)

GIRO committee Two working groups

Board of Directors
BSzB Committee

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Budapest, 21st October, 2005 Giro Ltd. Hungary 14

Success criteria

We, the participants of the payment system, can react successfully to the new challenges only with joint efforts, working together shoulder-to-shoulder

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Budapest, 21st October, 2005 Giro Ltd. Hungary 15

Thoughts about the future role and activity of the Hungarian ACH - - PowerPoint PPT Presentation

Thoughts about the future role and activity of the Hungarian ACH (alternatives & chances)

Historic Momentum

system since ACH operates

the global payment system in favour of the customers and efficiency

together

What is the current status ?

local entities, foreign ones (incl. branches)

Expectations of the Stakeholders

What to do - Alternatives

to form a PEACH

Keeping-up the current service

– Until HUF exists – providing service – Let the Banks find their way – Gradually ceasing clearing activity – What will happen with State Budgetary and small local Financial Institutions?

Building up a PEACH

It is clearly not an alternative at the current status

Building up an up-to-date solution I.

become global

Building up an up-to-date solution II.

Alliance with a potential PEACH

–Involve the local market to a bigger one –Utilising synergies, volumes –Easy and efficient compliance with SEPA –Hungary as regional consolidator –Alliance, Merger – fusion, etc. –Laws, owners, Central Banks, potential partners interests

Uncertainties in Making Decision

then (Overriding principle)

laws and regulations, technical changeover by participants

ACHs will react?

GIRO’s Opinion

Fora for discussions

GIRO committee Two working groups

Success criteria

We, the participants of the payment system, can react successfully to the new challenges only with joint efforts, working together shoulder-to-shoulder

Thank you for your attention!

Peter Legeza GIRO Rt. Budapest, Vadász u. 31. Hungary, 1054 Tel.: +36-1-428-5600 www.giro.hu