19 October 2017
Rapid cross-border payments will be crucial for corporate treasurers in the years to come, Danske Bank veteran Søren Haugaard told the audience at the financial services event in Toronto.
Although services have improved significantly in recent years, customers will want more. Specifically, cross-border payments need to happen faster and with even more transparency.
That was the message from Søren Haugaard, Danske Bank’s Head of Trade, Supply Chain and Export Finance, as he took part in the SIBOS conference in Toronto this week.
“We have come a long way in recent years with new tracking functionality among other things. But this is an area, in which banks will have to work together to improve the customer experience,” he said.
Søren Haugaard is also a board member at SWIFT, the global financial cooperative owned by banks. He was on stage with Hubert Jean Pierre Jolly, Head of Global Financing and Channels at Bank of America Merrill Lynch.
New tracker in place
Under the headline 'What’s next on the wish list for the corporate treasurer for global payments innovation', the two senior bankers were accompanied by corporate treasurers Brooke Tilton and Bart Verweij from Viacom and Booking.com respectively.
Earlier in the year, Danske Bank enabled corporate customers to track cross-border payments using a new tracker function developed by SWIFT. The functionality has been integrated in Danske Bank’s business customer interface Business Online, allowing the monitoring of transactions to take place in an environment already known by customers.
“It is still early days. However, the initial feedback has been very positive as the service increases speed and transparency for customers,” Søren Haugaard told the audience at SIBOS.
Increased demand for speed
Up until the new tracker was introduced, it has not been possible for the customers to get to know how their payments progress across borders and banks without reaching out to the bank.
According to Søren Haugaard, the speed of cross-border payments will be crucial in the years to come.
“So far, the priority among corporate clients has been for visibility and predictability of payments. This has largely been satisfied. Going forward, the growth of real-time payments generally will impact customer demand for faster cross-border payments,” he said.
Danske Bank already operates instant payments in core markets and has applied the new SWIFT driven payment initiative. According to Søren Haugaard, the bank will play an active role in the emerging instant payments development across Europe.
“We consider payments execution to be at the core of banking. We aim to make customers’ corporate day easy by securing fast and transparent payments at a fair price available to all our customers.”
Danske present at SIBOS
Søren Haugaard recently celebrated his 40 years anniversary at Danske Bank where he is also a member of the global management team in Transaction Banking.
He participated at the SIBOS conference along with Global Head of Transaction Banking Lars Sjögren, Head of Customer Solutions & Support Claus Sørup, Head of Payments Katrine Mitens and Head of Derivatives & Securitues Services Michael Holmgaard Mortensen.
So too, Danske Bank was represented at SIBOS by Global Head of Financial Institutions and Hedge Funds Jesper Ronald Petersen as well as Head of OECD Financial Institutions Flemming Nielsen among others.