DNB launches ‘Switch to IBAN’ campaign

Amsterdam – On 9 May, De Nederlandsche Bank (DNB) launched the national ‘Switch to IBAN’ campaign. The campaign is intended to make consumers, and businesses in particular, aware that they need to prepare for the transition to the International Bank Account Number (IBAN). DNB research shows that Dutch businesses and consumers still know little about using IBAN as an account number. In the coming period, an increasing number of organisations will use IBAN for all domestic and cross-border euro payments. From 1 February 2014, everyone will use only IBAN for euro credit transfers.

Businesses and consumers alike still have insufficient knowledge of the transition to the Single Euro Payments Area (SEPA). The spring 2012 SEPA Monitor shows that 70% of small and medium-sized enterprises with 1 to 199 employees and 34% of medium-sized companies with 200 to 999 employees are not yet aware of the transition’s impact. The ‘Cross-border payments 2012’ survey shows that 55% of consumers have previously heard of SEPA, while 63% have heard of IBAN. Frank Elderson, Executive Director of DNB, says: “SEPA is closer than people think. We are running this information campaign on behalf of the National Forum on the SEPA Migration to inform consumers and businesses about these changes and help them prepare. Consumers mainly need to know where to find their IBAN. Businesses need to take action in good time so that they are ready for the transition.”

Finance Minister Jan Kees de Jager supports the campaign and emphasises the importance of a smooth transition to IBAN.

Switch to IBAN

IBAN is currently used mainly for cross-border payments. By 1 February 2014 at the latest, it will also be used for all domestic payments. Until then, there will be a transition period during which increasing numbers of businesses and public authorities will start using IBAN. Consumers mainly need to know where to find their IBAN. DNB’s research shows that 55% of consumers currently know where to find it. They are less familiar with finding the IBAN of another person or organisation: 35% know how to do so. Bart Combée, director of the Dutch Consumers’ Association, says: “Fortunately, consumers do not need to do very much, as long as it is clear where they can find their IBAN, for example on their bank statements. Most of the work will take place behind the scenes over the coming years, at businesses, banks and public authorities.”

IBAN-ready business operations

The SEPA Monitor shows that 15% of small and medium-sized enterprises and 59% of medium-sized companies have started preparing for the transition to IBAN, but that the majority have not yet begun. Hans Biesheuvel, chair of MKB-Nederland, says: “We advise businesses to draw up an assessment and action plan before the summer. Only then will business owners be able to implement in time the changes that IBAN and SEPA will bring to their organisation.” Some 56% of large companies and 69% of public institutions say they have a complete picture of the changes that IBAN will bring within their organisation.

In addition to using IBAN as the account number, everyone within SEPA will use new standards for credit transfers and direct debits. Businesses will need to adapt their financial, staff and customer records as well as their financial correspondence. Suppliers and customers will also need to be informed. Larger businesses are advised to manage the migration as a programme. A clear project plan, including an impact analysis and timetable, is essential.

The ‘Switch to IBAN’ campaign

The ‘Switch to IBAN’ information campaign helps consumers and businesses make the transition to IBAN. DNB is running the campaign on behalf of the National Forum on the SEPA Migration (NFS). NFS members have drawn up a national migration plan to ensure a smooth, phased transition. Boele Staal, chair of the Dutch Banking Association, says: “Banks support businesses and consumers as much as possible to ensure a smooth transition, for example with services that convert large volumes of account numbers or automatically convert online banking address books.”

Advertisements, television commercials, online banners and the dedicated campaign website www.overopIBAN.nl inform consumers and businesses about the transition to IBAN. The website also provides a toolkit for businesses, including a checklist for drawing up an action plan. It also offers sample texts and visual materials that businesses can use in their own communications.

In the Netherlands, the migration to IBAN is being coordinated by the National Forum on the SEPA Migration (NFS). It 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 .