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Tieto ‘in talks’ with banks over pan-Nordic payment infrastructure

16/04/2018

A pan-Nordic ISO20022-enabled payment infrastructure that is being investigated by seven major Swedish, Danish, Norwegian and Finnish banks, which InstaPay has confirmed will be instant in nature if greenlighted, is talking to Tieto as a potential technology supplier for the project, claims the vendor.

The proposed scheme is still in its very early days and other vendors are no doubt being sounded out about the SCT Inst compatible project and how they might be able to support it, or provide connectivity options to its users.

The seven supporting banks are DNB, SEB, Nordea, Danske, Handelsbanken, OP Financial Group and Swedbank. If built, the platform will support domestic and cross-border operations in multiple currencies (SEK, DKK, NOK and EUR).

In a recently released statement Tieto itself acknowledged, “the initiative is still in an early stage”, but added it is “currently in dialogue with the banks to find a way to best support the realization of this project and its vision”.

“A Nordic payment platform would enable significant cost savings compared to investments in country-specific solutions,” said Sami Uski, lead solution consultant, Tieto, while allowing for more innovative services. “A common platform also has great potential to bridge geographical boundaries and enable pan-Nordic instant payments, while making Nordic banks and the region more competitive.”

He added, while citing the advent of the second EU Payment Services Directive (PSD2 and the consequent need for value-added supranational services, that payments are under threat of “being commoditized”, making it therefore “essential to find synergies wider than national solutions”.

Tieto has in the past been involved in some national payment ecosystems in the region, such as Siirto in Finland and Swish in Sweden, and is obviously hoping to leverage this experience to try and win new business in any new pan-Nordic platform that comes to pass.

However, as Claus Richter, Head of CM Customer Solutions, Transaction Banking at participating bank Nordea, confirmed to InstaPay recently “a solution is not designed yet” and the project is still in its infancy.

 

Author: Neil Ainger