EBICS for Corporate Customers Gains in Importance

Required knowledge

• Acquaintance with EBICS basics

Since Switzerland joined the EBICS community in May 2015, a lot has happened in electronic corporate customer channels. It is true that there are still a large number of communication protocols that the software partners of corporate customers can implement or maintain if they pursue a multibanking approach with all Swiss financial institutions. However, there is a decreasing need to support this variety of protocols. On the one hand, more and more institutions are offering EBICS as a communication channel to their customers. On the other hand, the software manufacturers realize that they can contribute a lot to the harmonization of the protocols and are lobbying the banks for EBICS.

The current standard transport protocol is the one that is accessible by the most financial institutions in Switzerland. The harmonization of the EBICS dialects with the new version 3.0, the Austrian banking industry joining the EBICS society, and the comprehensive replacement of the proprietary multibank standard currently used make the synergies noticeable for the software manufacturers, especially in the DACH region. In Switzerland, too, banks and their software partners are in the process of replacing proprietary protocols such as Intersystem or Keyfile, as well as SFTP implementations.

Wide Reachability of Banks

Many regional and cantonal banks currently also support EBICS, at least for their most important customers. In addition to the now practically nationwide distribution of EBICS in the Swiss financial center, the multi-faceted use cases of the banks also demonstrate the increasing importance of the standard.

Sending PDFs via EBICS has now almost become part of the standard offer. EBICS is also almost indispensable as a Swift gateway delivery channel and for connecting external partners who depend on an efficient and secure exchange of messages and electronic documents. The high level of operational stability and good performance meet even complex customer requirements. As an example, trustees with an EBICS contract can handle thousands of accounts and manage pain.001 files containing more than 30,000 payment instructions. EBICS also offers efficient protection against operational and cyber risks with the Distributed Electronic Signature. As has been seen in the German market, EBICS shows off its strengths at the customer-bank interface when faced with new challenges posed by eBill for corporates, request to pay or instant payments.

The National and International Working Groups

The harmonization of communication channels in the market would be unthinkable without administrative preparatory work. Above all, the EBICS working group Switzerland, which maintains the standard in this country, is constantly examining how EBICS could be made even simpler and more attractive. Its members are of course aware of EBICS’s establishment as a standard channel. Both wider distribution and new application possibilities are foreseeable. The success story is primarily shaped by the dedicated working group members, the software industry, and numerous financial center stakeholders that implement EBICS. Together, they create synergies and build bridges between different application areas.

The international focus on digitalization, the simplification of processes, and the maintenance of the standard is a decisive success factor.

The balance between continuity and change is always challenging. This also applies to the composition of the international working group. Representatives from both Germany and Austria have retired from the committee and been succeeded by new ones. There have also been changes to the Swiss representation. It was therefore all the more valuable that after more than two years of the COVID-19 pandemic, a face-to-face meeting could again take place to get to know each other, have discussions, and find a common direction. A committed and forward-thinking group has come together that continues to diligently and energetically approach the task.

All country representatives agreed that the migration to EBICS 3.0 has been slow. This is, among other things, due to the current major changes taking place in the financial market that began with the ISO 20022 standard version change, which the Swiss financial center has already completed and which is still pending in the SEPA area, and also includes the entry into effect of CBPR+ and topics such as the obligation to use structured addresses. The currently most widely used EBICS version (2.5) runs reliably, which corporate customers appreciate. Austria is the exception to the rule. In contrast to Germany, France, and Switzerland, EBICS is not yet widespread in Austria. The simple reason for this is that a nationwide, direct migration to EBICS 3.0 is planned in November 2023.

In Germany and France, the financial institutions are pushing ahead with the changeover individually. Switzerland has opted for a gradual migration. The parallel phase with EBICS 2.x and EBICS 3.0 has been running since 2021.

Claus Halbherr, Swisscom Banking, member of WG EBICS         

Corinne Bellwald, SIX, Head of the EBICS WG and Swiss delegate in the EBICS Working Group