UWV becomes first major organisation to switch to IBAN

UWV is the first major organisation in the Netherlands to use IBAN as the account number for all its payments, starting this month. Frank Elderson, Executive Director of DNB and chair of the National Forum on the SEPA Migration (NFS), marked this milestone today by presenting a plaque to José Lazeroms, a member of UWV’s Executive Board. “By switching to IBAN at an early stage, UWV is setting an example for many other businesses that still need to take this step. We can make good use of UWV’s experience during the rest of the migration process,” Elderson says. Research shows that only 22% of small and medium-sized business owners know what action they need to take.

“As the National Forum on the SEPA Migration, we are pleased that UWV has already taken this important step,” Elderson says. “Many businesses are not yet this far, or have not even started. It is essential that they do not underestimate the impact and take the necessary steps in good time.”

“It may seem like a relatively small technical adjustment – a longer account number – but it is an organisationally complex change,” José Lazeroms says. More than 40 administrative systems were adapted to work with the longer account number, in a project that took eighteen months. “Starting later was not an option for us, because we wanted to work on this project without the pressure of a deadline. This enabled us to eliminate all risks. After all, more than one million people depend on our payments.”

UWV’s close cooperation with its principal bank ING was important to the project’s success. “Although cooperation with banks and software companies is important, as an organisation you ultimately have to get to work yourself,” Lazeroms emphasises. The transition mainly took place behind the scenes and was completed without disruption: UWV converted the account numbers of existing customers itself. New customers have recently been asked to provide their IBAN when registering.

Single payments market

The background to the switch to IBAN is Europe’s move towards a single payments market: the Single Euro Payments Area (SEPA). In addition to replacing existing account numbers with IBANs, payment instruments such as credit transfers and direct debits are also being adapted. If businesses fail to adapt their administration, software and operations within the next eighteen months, they will no longer be able to use cashless payments. VNO-NCW and MKB-Nederland therefore advise business owners to assess the impact of IBAN on their company this year – preferably this summer – and determine what action is needed to be ready in time. It is also important to obtain support from banks and software suppliers in good time where necessary.

National Migration Plan: a phased transition towards 1 February 2014

In the Netherlands, the migration to IBAN is being coordinated by the NFS. The National Forum on the SEPA Migration brings together representatives of banks, businesses, consumers, public authorities, software suppliers and other organisations. They agree on how the Dutch payments market will migrate. The NFS was established by the National Forum on the Payment System (MOB) to ensure a well-organised transition to IBAN and SEPA, with the commitment of the parties involved. The NFS is chaired by De Nederlandsche Bank. A National Migration Plan has been drawn up for the transition: the migration to the new standards will take place in phases over the coming years, and the plan provides an overview of the timetable for broad groups of users. This spring, on behalf of the NFS, De Nederlandsche Bank launched the Switch to IBAN information campaign to inform consumers and businesses about all the changes.