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My name is Heimen Schuring and I am head of channel support and payment engine within Rabobank, we are responsible for running and changing the payment infrastructure, we are renewing the payments infrastructure at the moment, and we are also working on some new products and developments, for instance we are introducing the instant payment solution for the instant payments scheme in the Netherlands and we go live the first of May 2019.
When you look at instant payments in relation to open banking, I think from a customer perspective they don't care they just want to pay, they want to receive, they want a seamless experience. Rabobank is working on this seamless experience.
They don't care how the processes within the bank work, whether it's instant payment or anything else, it's under the hood for them. So, we want to be the enabler for them to live their lives and to run their businesses.
The main reason for Rabobank to develop the new products in payments is the customer. The customer is very demanding in the Netherlands, they are used to having good services when it comes to banking and payments, and they see instant payments as the next step being very normal, they see open banking - well you can't say that you are seeing open banking but they just the apps from other providers, they want the bank to have apps which contain all kinds of services they need in their daily life and their daily business.
The new overlay services from open banking will strengthen the offering we have for our customers. It will be a great combination to have all kinds of features in your app or on your computer which combine smoothly with instant payments. So, it's about finding and connecting, that's what our mission is, we want to find the best solutions for our customers and we want to connect it to our existing processes, so we can offer them great services for a good price.
When you talk to the business value of open banking in combination with instant payments, when it comes to the consumer markets, customers are used to having a flat fee, a subscription to their services, so we can't add any costs at that side. But when you look at the small-medium enterprises, but also to the large corporates we see opportunities to offer them new services they would like very much, and they are willing to pay for that because for them there's a business case into it as well. For instance, when it comes to reconciliation of funds and bills, and when we make it possible to put a payment to their customers and they can put their own identifier into that they can reconcile it with the payment when the payment comes in to their debitors administration. Those kinds of combinations will save them costs and they are willing to pay for those new services.
I would say for businesses it's important that they don't have to many administrative hassles, that they don’t have to reconcile things by hand, that they become automated, it's also very important for businesses to have control over their liquidity during hours. So the intraday liquidity question is getting bigger also for our customers because money is a scarce good and, we see it as a bank but we also see it for our customers, that they want to control their liquidity, they want to control their accounts during the day and that's where the added value of instant payments kick in, they can time their payments any second they want because within 5 seconds the funds are sent to another account. So, for liquidity management it's very good to have instant payments available.
When it comes to the combination of open banking and instant payments I think the first thing is the mindset of the organisation and the people working there. We are customer focused and every organisation says that of course but with Rabobank I really see this extra step we take for our customers and we want to be their daily bank where they can do all their businesses with.
Within Rabobank we set up an office the digital transformation office which is responsible for the customer journeys we see not only at the moment but also for the future innovations and developments. Within the digital transformation office, we've got a digital hub and an innovation hub, and for payments we are working closely together with both of these offices, so we can combine resources, we can combine ideas, we can make the customer journey as smooth as possible. In that way payment services is highly integrated in building new customer propositions, and that makes the bank flexible, it makes the bank cost effective as well, we can provide the customer new solutions on a very timely basis.