Intix survey reveals only 1 in 3 banks ready for instant payments regulation

The research assessed instant payments in the European banking sector and examined banks' readiness and compliance with ISO 20022 standards and the upcoming EU Instant Payments Regulation, effective January 2025 for receiving and October 2025 for sending transactions.

Key insights from the survey reveal

• Only 33% of participants stated they were prepared to meet the EU's instant payment deadlines. An additional 41% mentioned they are ready but face certain limitations, while 25% indicated they are entirely unprepared for compliance with the regulations;

• The primary concern identified was adherence to sanction screening, Anti-Money Laundering (AML), and fraud detection requirements, including the Verification of Payee checks;

• Respondents expressed challenges in fulfilling the required 10-second, 24/7 service level agreement (SLA) and managing the increased volume of messages.

These findings highlight that numerous banks are encountering significant hurdles in implementing real-time payment capabilities, adhering to the mandated 10-second transaction time, and complying with AML and fraud detection standards. With regulatory deadlines quickly approaching, Intix's survey underscores the pressing need for upgraded processes and technologies to achieve these objectives and ensure compliance.

Furthermore, Intix’s survey reveals that most banks focus on risk and compliance investments, with 42% allocating most of their budgets to regulatory compliance. Payment engine adaptation is the second priority, identified by 33% of banks as a key investment area.

Banks are aligned in their strategies for sanction screening and fraud detection, with 42% planning to use a combination of pre-screening, real-time, and post-screening measures. The next most common approach is a mix of pre-screening and real-time screening at 25%, while only 17% rely solely on real-time measures. Additionally, 50% of banks are still adopting the ISO 20022 standard, with nearly 40% already using it as their primary standard and only 8% having no experience with it, indicating its growing adoption in the financial sector.

The research emphasizes the growing need for modern solutions that help banks manage instant payments while ensuring compliance and customer satisfaction. Platforms like Intix provide banks with the tools to monitor, track, and report all transactions from a single interface.