10 seconds. Under the SEPA Instant Payment (SEPA IP) initiative, it is now necessary to move money across the eurozone. Every day, every day, batch processing is a thing of the past.
Immediate SEPA payments have been around for eight years and the compliance deadline is looming, making transformation accelerating across EU institutions. The October requirement for outbound instant eurozone payments is a big catalyst. However, there is still a gap between regulatory requirements and operational realities as many European banks suffer from legacy infrastructure limitations, inconsistent user experiences, and incomplete 24/7 processing capabilities. Meanwhile, non-EU banks are pushing for expectations and modernizing their outdated systems.
Non-EU banks may have more time on paper, but the EU will offer non-Eurozone banks until 2027 and adhere to SEPA IPs in both sending and receiving payments, its breathing space can be false comfort. Regulatory delays should not be mistaken for strategic leeway. Customer expectations have already changed, and the clock is ticking.
Legacy systems are not designed for immediate payments. Historically, the banking system was operating comfortably on a batch processing schedule – downtime was predictable and maintenance windows were scheduled. The SEPA IP then came to eliminate such luxuries and mandated constant preparation that legacy systems could not maintain.
It’s not the only problem facing non-EU banks. Their infrastructure is often far away and is designed for payments during their own domestic opening hours. Banks have two gaps that require bridges. The technological cracks between current legacy capabilities and where it is needed, and the geographical disparity between business and clients. They must solve ways to bridge them without sacrificing daily services.
Minor adjustments to the legacy system are insufficient. Tearing old infrastructure and replacing it with the latest core is hardly possible despite its long-term benefits. So it’s a progressive approach that helps Banks fill these gaps. Gradual adjustments to SEPA IP’s 24/7 model and legacy systems should be a priority for non-EU banks quickly, allowing customers to quickly meet customer expectations and raise customer expectations without regulatory deadlines and massive disruptions.
Another consideration for non-EU banks is how real-time transactions fundamentally change liquidity management. The traditional liquidity framework, established around batch processes and fixed payment windows, is now facing obsolescence. However, many banks still manage their liquidity with manual processes and spreadsheets. This does not work with SEPA IP. Under this new system, the liquidity needs are immediate and continuous, and demanding dynamic management that legacy systems are not designed to accommodate.
Banks need to be able to predict and manage liquidity in real time. Accurate and immediate forecasting is important in minimizing operational risks and avoiding costly liquidity shortages. Automation and analytics tools are here to receive great support. A sophisticated analytics platform can provide real-time visibility into liquidity positions, and automation technologies can instantly relocate funds as transaction requests.
A financial institution that is one step further is to restructure its financial operations. These operations should be more closely aligned with the instantaneous payment flow. That way you don’t slow things down. These changes, combined with the steps mentioned above, allow banks to move from slow legacy processes to active, real-time liquidity management that increases operational efficiency, significantly reduces system risk exposure, and allows banks to respond quickly to changes in market dynamics.
To provide true, immediate payments, banks need to do more than just a patch legacy system. You need to regain the speed. This starts with moving away from monolithic infrastructure in favour of an agile modular platform built to handle ISO 20022 natively.
ISO 20022 is more than just improving compatibility. Unlock rich, structured data that enhances better fraud detection, customer insights, and cross-border automation. Banks that can leverage this data are well positioned to launch value-added services and enhance the customer experience at any transactional touchpoint.
Cloud computing is another important enabler. Data shows that 25% of banks are still exploring cloud options in 2025, and will remain primarily on-premises. Cloud adoption gives you the flexibility and resilience you need to scale in real time, handle unpredictable payment volumes and reduce delays. Combined with APIs that streamline communication between internal systems and external channels, cloud deployments provide the foundation for a more dynamic and responsive banking industry. 25% of banks are still exploring cloud options in 2025, and remain primarily on-premises.
Cloud adoption gives you the flexibility and resilience you need to scale in real time, handle unpredictable payment volumes and reduce delays. Combined with APIs that streamline communication between internal systems and external channels, cloud deployments provide the foundation for a more dynamic and responsive banking industry.
Some non-EU banks began with a “thin layer” approach and built gateways compliant with ISO 20022 to mediate legacy core systems and SEPA IP networks. This has had limited success, as SEPA IP is more than just ISO messaging. This is because it immediately requires 24/7 clearing and payment capabilities that legacy systems do not have. Competitive leaders are moving further, accelerating both innovation and compliance with SEPA’s power of attorney as the challenge of implementing native, real-time 24×7 components into payment infrastructure.
SEPA IP is more than compliance deadlines. This indicates that banking rules have changed. Speed, data and seamless infrastructure are now baselines. Banks that stick to legacy systems run the risk of falling behind regardless of their location or timeline. While the 2027 deadline for non-EU institutions may seem far away, it’s time to act in a world where customers expect immediacy.
Nadish Rudd Managing Director and Global Head of Strategic Business Volante Technologies
“Immediate payments are a new standard. Can banks catch up?” was originally created and published Electronic Payment Internationala brand owned by GlobalData.
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