If you’re reading this article, the chances are high that you’ve heard of P27 before and you know that changes are coming. The goal of P27 is to establish the first integrated region for domestic and cross-border payments in multiple currencies in the Nordic countries (Sweden, Denmark, Norway, and Finland). It also aims to comply with the standards of the Single Euro Payments Area to harmonize the European payments landscape. P27 is a joint initiative by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB, and Swedbank.
The aim is not to be a burden for companies processing payments, it’s the opposite: banks want to create the state-of-the-art payment experience of the future to customers in the Nordics.
While the official launch of P27 is only coming later as it is subject to regulatory approvals, some banks have been on the frontline of prioritizing this development, thus ensuring that all business customers have sufficient time and resources to prepare for the changes.
What are the most important changes for you?
With P27, we are saying goodbye to clearinghouses. Instead, all payments will be handled directly by the banks. What does it mean for you?
- You will need to be able to communicate directly with all the Nordic banks that you’re working with.
- You’ll need to be able to send the payment files in XML ISO20022 format.
- For reconciliation purposes, your system should be able to interpret account statements in XML.
What are the 5 benefits of working with Nomentia to become P27 compliant?
P27 is a great initiative, and it should positively impact businesses all around the Nordics. Nevertheless, at this point, it may seem like a massive undertaking that could require significant resources from you.
It shouldn’t be like that. Working with Nomentia clients, like NCC, we have been helping our clients from all Nordic countries to face the upcoming P27 changes with confidence. They don’t need to worry about the changes and they know they can rely on Nomentia’s solutions and consulting expertise to support them on the P27 compliance side as well.
Here are the 5 benefits our customers mention when they work with us to become P27 compliant:
1. Connect to any banks in the Nordics (and globally, of course!)
Bank connectivity as a service is at the core of what we are doing. It can be a mundane task for your IT, especially, if they lack experience in working with banks.
Nomentia offers three different connectivity options to reach any bank in the Nordics as well as globally:
- Host-to-Host connectivity: It’s one of the most popular methods for connecting with banks. Currently, we offer over 200 host-to-host bank connections. Naturally, as a company that headquarters in the Nordics, we cover all the Nordic banks (e.g., the ones that have founded the P27 initiative).
- SWIFT Connectivity: Being a SWIFT Alliance Lite2 partner, we can reach over 10 800 banks via this service.
- Regional connectivity: Specific regions have their own connectivity types for standardization and harmonization of the payment processes. This is also something we support in several regions.
2. Connect to any source system like ERP or TMS
Connecting to the banks is only half of the story. Businesses also need to make sure that there is an endpoint connecting to their ERP or TMS. Depending on factors such as the communication protocol this can be quite a challenge too.
Nomentia has decades of experience building integrations with ERP and TMS systems regardless of the setup. We are quite frequently working with SAP S/4 HANA as it is a popular ERP choice for enterprises, but we also come across in-house systems built decades ago with more state-of-the-art setups or lack of documentation.
Long story short, we will be able to create a system integration between your source system and the bank(s) you are working with for a smooth experience.
3. File format conversion & data mapping
This is probably (not) the most fun part of the process. If your source system does not generate XML, specifically ISO20022 XML, Pain.001, you will have to think of the file format conversion as well as the data mapping.
Nomentia can take care of it and work with any popular file format, both modern and legacy ones. We will take care of the conversion as well as the data mapping part.
In case, something would change at the end of the bank, we will make sure that everything is updated, and your payment files keep processing.
4. Support with reconciliation
You can also utilize Nomentia Reconciliation to be able to interpret account statements and reference materials in XML format to ensure that your process is automated and streamline transaction processes for faster month-end closing.
5. Improve your payment process
Working with Nomentia to become compliant with P27 will streamline your payment processes just by connecting your source systems with the banks, supporting the payment standardization initiative, and possibly helping with your reconciliation process as well.
While it’s not a must-buy, you can also discover whether Nomentia Payments would be an alternative for improving and automating your payment processes even further.
Take charge of your P27 compliance
Also, there’s still time before P27 becomes mandatory for all businesses in the Nordics, some banks are already gently requesting their clients to become compliant already during 2022.
To become a frontrunner (and avoid a stressful situation), it’s time for you to take charge of your compliance and get ready for the new changes – maybe by scheduling a discovery call with us to map out how you could manage this project without the usual hassle: