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TRANSCRIPT
Confidential Page 1
SEPA Enabled via Deutsche Bank -SEPA Services Proposal-
October, 2011
Confidential Page 2
Table of Contents
Table of Contents ..................................................................................................... 2
Introduction ............................................................................................................... 3
Why Deutsche Bank for SEPA clearing? ........................................................................................ 3
SEPA Connect via Deutsche Bank – full Reachability with extended Scope ................................. 5
Deutsche Bank’s SEPA Solution ............................................................................. 6
SEPA Connect – SEPA Compliance via Deutsche Bank ............................................................... 6
Advising and Information Reporting .............................................................................................. 10
Reporting ...................................................................................................................................... 10
db-direct internet: .......................................................................................................................... 11
Cinq - Online inquiries and investigations: ................................................................................... 11
Service Excellence ................................................................................................. 12
Conclusion .............................................................................................................. 13
Disclosures ............................................................................................................. 14
Statement of Confidentiality .......................................................................................................... 14
Documentation .............................................................................................................................. 14
Maintaining our Operational Strength ........................................................................................... 14
Confidential Page 3
Introduction
Deutsche Bank is pleased to present Eurogiro Network A/S’ members our Single European
Payment Area (SEPA) Solution. Our SEPA solution is an integral component of our overall global
clearing and settlement service offering. Our solution continues to provide Eurogiro Network A/S’
members a single-entry point to full scale and highly flexible payment solutions for all inbound and
outbound payments (i.e. SEPA and non-SEPA).
Deutsche Bank is one of the world’s largest global clearing bank, with a #1 position in EUR, and
leading positions in USD and multi-currency. In an effort to demonstrate our commitment to the
cash management business, we continue to invest heavily in innovative payment solutions and
technology. Our clearing and settlement solutions are well positioned to help Eurogiro Network
A/S’ members reduce their cost infrastructure and support the long-term growth of the business.
We view this proposal as a valuable opportunity to build upon our important relationship with
Eurogiro Network A/S’ members and clearly outline how Eurogiro Network A/S’ members will
benefit by choosing Deutsche Bank as the cash management partner for SEPA.
Why Deutsche Bank for SEPA clearing?
Since January 2008 Deutsche Bank meets all Day One commitments – full-readiness on a pan-
European platform, both for Credit and Debit transfers. We carry out our SEPA clearing via EBA
STEP2, bilateral file exchange and in-house transfers. This ensures that our clients are SEPA-
enabled with extended scope. As you read through the following pages, it will become evident that
Deutsche Bank’s SEPA solution was developed to ensure Eurogiro Network A/S’ members’s
success.
Allow us to highlight some essential points which form the basis of our SEPA solution:
Deutsche Bank provides Eurogiro Network A/S’ members with a “plug-and-play” solution.
We provide full SEPA clearing capabilities or, if preferred, selective conversion services
enabling Eurogiro Network A/S’ members to be SEPA reachable - with minimum
investment.
With automatic conversion capabilities, Deutsche Bank supports SEPA payments beyond
the ”standard reachability” offered by a pan-European ACH (PE-ACH), thereby, avoiding
rejects and processing delays.
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Deutsche Bank’s SEPA solution is perfectly aligned to compliment our already existing
global cash management and high-value payment proposition via our switchboard. By
working with Deutsche Bank, our Financial Institution clients will fully leverage our
investments in the Clearing and Settlement infrastructure and benefit of a single entry
point for all of their SEPA transactions.
We trust that our offering provides Eurogiro Network A/S’ members with opportunities for both
short-term tactical as well as long- term strategic options. We look forward to partnering with you
in the decision making.
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SEPA Connect via Deutsche Bank – full Reachability with extended Scope
Deutsche Bank believes that
“Reachability” is one of the key
requirements for the success of SEPA.
The scope of SEPA Connect via
Deutsche Bank is EU/EEA, Monaco and
Switzerland. In order to deliver any
SEPA transactions from our Financial
Institution (FI) clients we use the
aforementioned switchboard.
Banks in countries that are not linked to EBA STEP2 SCT, and are not SEPA Connect customers
of Deutsche Bank can be reached by converting SEPA payments into SWIFT FIN MT103
messages outside of the Scheme. We believe that this service is extremely important especially
as domestic infrastructures still exist and it is not guaranteed that all EU/EEA and Swiss banks
are yet SEPA reachable.
Reachability for non-SEPA Payments is not restricted to any specific geographic area. We, as the
leading EUR clearing bank, continue to use the existing individual high-value payment clearing
infrastructure to route payments directly to the beneficiary bank whenever possible, or use our
correspondent banking network.
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Deutsche Bank’s SEPA Solution
Deutsche Bank is ready with its pan European payment platform for both credit transfers and
direct debits. The SEPA Connect Solution outlined in this proposal includes clearing services for
SEPA Credit Transfers and SEPA Direct Debits. For SEPA Direct Debits Deutsche Bank’s
offering will not only include the core services as published by the European Payment Council but
also additional optional services such as the handling of Business to Business (B2B) direct debits.
SEPA Connect – SEPA Compliance via Deutsche Bank
With this model, banks are connected to the clearing infrastructure (SEPA PE-ACH) as indirect
participants through Deutsche Bank to receive and send SEPA Credit Transfers and SEPA Direct
Debits. They are able to accept SEPA-compliant transactions from their corporate and retail
customers without the need to directly participate in SEPA clearing. In addition to XML, SEPA-
compliant refers to instructions sent for example, in EDIFACT or CSV formats, but contain all
SEPA relevant data fields/mandatory information.
This solution results in minimum investment necessary in adjusting the front-end systems to
receive and to validate SEPA-compliant transactions. Deutsche Bank ensures the conversion
into/from the SEPA XML formats, bulking, clearing, and settlement.
Indirect participations in EBA STEP2 SCT and EBA STEP2 SDD together with the respective
EPC Adherence Agreements, are integral components of this solution.
Receipts:
SEPA Credit Transfers are received by Deutsche Bank from the Clearing Infrastructure and
credited to Eurogiro Network A/S’ members’ account.
The outgoing messages from Deutsche Bank to Eurogiro Network A/S’ members can be either
XML PACS messages in a file to the beneficiary bank, or converted into pre-agreed formats such
as SWIFT FIN MT103 which allows processing in existing local environments.
For inbound transaction received via Clearing, Deutsche Bank offers a variety of reporting
possibilities such as the XML messages or SWIFT FIN MT103.
In addition to the standard return via XML format, as a value added service, a process can be
agreed between Deutsche Bank and Eurogiro Network A/S’ members for handling of return items
using either a SWIFT MT103 including the code word /RETN/ or a SWIFT MT199 which is then
converted by Deutsche Bank into a SEPA-compliant return instruction.
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Payments:
Deutsche Bank accepts SEPA Credit Transfers sent by Eurogiro Network A/S’ members either by
XML PACS, CSV or MT103 format via various delivery channels like FileAct, db-direct, Eurogiro
or MT103 via SWIFT FIN messages.
SEPA Credit Tranfers returned by the beneficiary bank through the SEPA clearing can also be
forwarded to Eurogiro Network A/S’ members via the MT103 FIN solution, including all relevant
information, e.g. the Return Reason, the Original End-to-End Identification, as well as the Original
Transaction Identification.
The booking in the accounts of Eurogiro Network A/S’ members takes place either as a bulk (per
XML PACS bundle), or per transaction (in case of individual FIN MT103 messages). In the case of
conversion from/to SWIFT MT103 Deutsche Bank takes care of the full transmission of the End-
to-End Identification, the Transaction Reference and the Remittance Information for your SEPA
receipts/payments via the account with us.
Incoming SDD (Eurogiro Network A/S’ members as debtor bank):
SEPA Direct Debit transactions are received by Deutsche Bank from the Clearing Infrastructure
and debited from Eurogiro Network A/S’ members’s account.
The SDD Notification from Deutsche Bank to Eurogiro Network A/S’ members can be either an
XML Pacs message (pacs.003), or converted into CSV. Deutsche Bank forwards the messages to
the indirect participant FI client immediately after receipt from the clearing, but not earlier than on
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D-6.
On settlement date Deutsche Bank performs the debit booking (either single or bulked as per
Eurogiro Network A/S’ members choice) on Eurogiro Network A/S’ members’ account. Reporting
is available via usual account statements via SWIFT formats MT950, MT940, MT942.
As a value added service, a process can be agreed between Deutsche Bank and Eurogiro
Network A/S’ members for handling of return items by Eurogiro Network A/S’ members, i.e. using
a SWIFT MT199 which is then converted by Deutsche Bank into a SEPA compliant return
instruction (pacs.004) or transmitting a corresponding XML file message.
Outgoing SDD (Eurogiro Network A/S’ members as creditor bank):
Deutsche Bank accepts SEPA Direct Debit transactions sent by Eurogiro Network A/S’ members
either in XML pacs format sent directly via Eurogiro, or – in addition to the XML format also in cvs
file format - through SWIFTNet FileAct, db direct internet or Host-2-Host (H2H).
The booking in the accounts of Eurogiro Network A/S’ members takes place as a bulk (or single)
per XML pacs message or CSV batch. In the case of conversion from/to CSV format Deutsche
Bank takes care of the full transmission of the End-to-End Identification, the Transaction
Identification, the Remittance Information (max. 140 characters), the ultimate Debtor, the ultimate
Creditor and Mandate Information for outgoing and incoming SEPA Direct Debits via the account
with us.
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Multilateral Interchange Fee
The Multilateral Interchange Fee (MIF) is a fee that the creditor bank pays to the debtor bank
when a creditor initiates a direct debit transaction.
In consideration of the Regulation (EC) No 924/2009 on cross-border payments in the Community
a MIF shall apply for an interim period until October 2012.
Where a MIF for a national direct debit transaction applies between the Creditor Bank and
Debtor Bank before 1. November 2009 such MIF shall apply for any national direct debit
transaction during the interim period. If the MIF is reduced or abolished, such reduction or
abolition shall apply to any national direct debit transaction. The Creditor Bank and the Debtor
Bank may however bilaterally agree on a fee deviating from the MIF. The country codes in the
IBANs and BICs of Creditor Bank and Debtor Bank will be the basis for determining whether a
transaction is considered domestic or EU cross-border.
The level of the default interim MIF for cross-border SDD is set at a maximum of 8.8
eurocents.
Deutsche Bank’s approach is to charge the Multilateral Interchange Fee to their SDD indirect
participant FI clients acting as the creditor bank as surcharge via the monthly billing invoice.
Confidential Page 10
Advising and Information Reporting
Deutsche Bank offers a variety of advising and reporting tools available to Eurogiro Network A/S’
members, with all the necessary information to facilitate reconciliation.
Our product suite includes a broad range of distribution channels such as SWIFT, host-to-host,
db-direct internet, Deutsche Bank’s internet-based client tool, and Eurogiro. In addition to the
choice of channels, we also offer Eurogiro Network A/S’ members the option to choose from a
selection of industry and proprietary reporting formats.
With all our product offerings we increase the value for Eurogiro Network A/S’ members by
delivering timely and quality information to facilitate a faster investigation process, to optimise
liquidity management and to shorten the reconciliation cycles:
Reporting
End-of-day Statements
Deutsche Bank can provide Eurogiro Network A/S’ members with the commonly used FIN set of
statement messages for electronic end-of-day statements:
MT950 Statement Message
MT940 Customer Statement Message
Normally dispatched before midnight CET, Deutsche Bank ensures Eurogiro Network A/S’
members the availability of information by 7am on the next working day. These messages contain
all entries on the account for the related business day.
Intraday Reporting Statements
Complementary to End-of-day statements, the MT942 Interim Transaction Report can be sent to
Eurogiro Network A/S’ members at pre-defined times in the day.
It features the same data structure per reported transaction as the MT940 statement.
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db-direct internet:
In addition to the standard SWIFT reporting, Eurogiro Network A/S’ members has the option to
use the Internet-based Account Information module available within db-direct internet to view all
current or previous day balance and transaction information on a global basis.
Eurogiro Network A/S’ members may inquire about information for its accounts in any currency at
all Deutsche Bank branches. The Account Information module also provides the ability to obtain
Eurogiro Network A/S’ members balances and transactions from other institutions servicing an
account for them.
Using the Account Information module, balance and transaction data can be interactively
downloaded in BAI2, CSV and SWIFT formats. Alternatively, the Adhoc Query component of the
Account Information module allows Eurogiro Network A/S’ members to create customised reports
that can then be exported to a Microsoft Excel spreadsheet.
Cinq - Online inquiries and investigations:
In addition, Eurogiro Network A/S’ members can use a single point of entry to access cinq, our
internet-based customer investigation, and inquiry system. cinq provides access to all of your
high-value payment transaction details for accounts with Deutsche Bank – regardless of currency
– as well as SEPA Credit Transfer transactions on a single platform. Furthermore, they can initiate
payment investigations and determine the status of existing investigations via the Internet.
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Service Excellence
Our service mission is to provide comprehensive customer service, dedicated local contacts,
automated system links, 24-hours processing, and customer service operations. This commitment
to quality is reflected in the ISO 9001:2000 certification that has been awarded to Deutsche
Bank’s Clearing Operations.
Deutsche Bank is committed to superior customer service. Eurogiro Network A/S and its members
will be able to expect flexibility, efficiency, and responsiveness from Deutsche Bank. Deutsche
Bank will combine technological and human resources to provide both the tools and skills that are
essential to provide service of the highest quality.
Comprehensive service and support is provided through an integrated organisation that includes:
A Client Manager that manages Eurogiro Network A/S’ members relationship with
Deutsche Bank. Eurogiro Network A/S’ members’ Client Manager is supported by Product
Specialists who are dedicated experts in funds transfer and other applications.
A CMFI Customer Service team who act as the primary day-to-day point of contact for all
inquiries. Eurogiro Network A/S’ members will benefit from regular contact and support
from their dedicated AM&S officer for assistance with transaction information as well as
product training.
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Conclusion
We believe that Deutsche Bank’s commitment to cash management, specifically to being fully
SEPA enabled as from the first day, is evident in this proposal. We are pleased to extend our
payment platform, services, and products to make our key Financial Institutions clients successful
vis-à-vis SEPA and, more generally, EUR clearing.
We believe that our proposed SEPA solution model will meet your overall SEPA strategy and can
be quickly implemented to enable your business success leveraging Deutsche Bank’s significant
infrastructure investment.
Our objective is to be your single gateway for your global payments, including facilitating your
success with SEPA in an efficient, cost-effective, and seamless manner. Importantly, we strive to
enable you to meet and exceed your own client expectations for the best payment products and
services.
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Disclosures
Statement of Confidentiality
The information contained in this document is highly confidential and is intended solely for the use
of Eurogiro Network A/S and its members. The contents of this proposal should be handled in the
strictest confidence.
Documentation
Deutsche Bank, its subsidiaries, and affiliates do not intend their responses herein to create a
legally binding agreement between the parties. Many of the services described herein will require
a separate executed legal agreement before they can be provided. Our responses herein, any
formal agreements drafted in the future, and any services actually provided are subject to all legal
and regulatory requirements that now exist or that may come into effect from time to time.
Maintaining our Operational Strength
Deutsche Bank is constantly reviewing its operational platforms to ensure that we are providing
superior technologies and processes allowing us to focus on maintaining high quality,
dependable, value-priced services. One of our main goals is to continue streamlining our
operations so that we can direct both our money and talent in delivering the best services. We will
communicate in a timely and comprehensive manner any changes to our services that materially
affect our proposed solution.