IN FOCUS: NICK FORD, CapGemini Head of Payments UK

Nick Ford is a man who knows about the payments business. As the head of the UK arm of one of the strongest payment practices worldwide, Nick is a heavyweight in the world of payments. Amongst the projects he has managed are: a payments strategy for a major UK retail bank, a re-engineering study for an international bank, and a commercial and IT review for the retail arm of a large UK bank. He provides specialist briefings and support on SEPA to ABNAMRO, Lloyds TSB and the Royal Bank of Scotland in addition to handling strategy projects for a number of the world's leading banks.

Nick is excited about the partnering of CapGemini and IAMTN, “In the area of money transfers, there is a real role for an independent body to coordinate activity globally, to provide a source for advice, training and development and work on behalf of operators, networks, governments and regulatory authorities. Both IAMTN and CapGemini are client-independent. The synergy lies in CapGemini's ability to provide global reach in terms of geography, databases, training and development, business development and compliance advice for new operators, knowledge, thought leadership and pre-existing networks.

“Conversely, CapGemini is very pleased to be involved with IAMTN right at the inset of what it is trying to achieve, as interest in the association grows rapidly. We believe IAMTN plays an important role for both operators and government regulators; and CapGemini would like to be a part of that growth.”

Nick's commitment to the payments sector is total. As he explains, "CapGemini sits perfectly with the payments industry. It is regarded as the leader in understanding the challenges payments face. Bear in mind it [the payments sector] is growing at 20% a year with many new technologies and business models coming on stream. It is essential to understand how the dynamics are changing, and it is only by keeping pace with the developments that the participants can do well.

"CapGemini's global reach means we can monitor developments in every part of the world; keep pace with the new regulatory requirements as they come on stream, and get to grips with emerging technologies from wherever they come. There is a huge amount of creativity and innovation in a sector which literally oils the wheels of economies, great and small.

"I see our strength as being able to give completely unbiased advice on the basis that we have no direct financial interest in one product above another. We are completely neutral. This is essential in helping others to make crucial decisions in their business development. Above all we work closely with companies giving them the individual support they need."

Data Base

Around six months down the road, CapGemini's research teams will provide a data base for IAMTN members to access information on the participants in the worldwide payments industry. The list is to include banks, the money service businesses, telecoms or pre-payment cards. This is the first such database in existence, which will provide basic information such as contacts, types of product offerings, type of products, markets, existing partnerships, etc. separated into the main corridors - Europe, Eastern Europe, Asia, Africa, etc.

As Nick Ford says, "This will be hugely useful to consumers and providers alike. We will provide a benchmark of excellence, so people will know what they are getting they will know who the players are, where, and how sophisticated. In addition we will be able to assist in the setting up of alliances between payment operators so furthering their business interests."

Anti Money Laundering and Compliance

Nick Ford and his team devote considerable resources to monitoring developments in compliance requirements across the world.

Says Nick, "We have considerable expertise in this field. The challenge for operators is to understand the compliance requirements in other countries. We have the means to not only monitor the changes but give advice on compliance.

“We have been working with a number of operators and large banks for 10-15 years, making sure processes are tighter in these areas. We work on all aspects of the payments value chain through broader offerings that cover risk, compliance, financial supply chain including money laundering.

“We recognise that there has been a real need for this which we are able to provide. In a rapidly developing world with economies which are leaping forward, the very vibrance means a greater need for care against financial crime."

European Union, Sepa and the Payment Services Directive

CapGemini has a strong division in Brussels concentrating on the developments in the EU Payment Services Directive and as it comes on stream, the Single European Payments Area. Nick Ford spends several days a month in Brussels working with the team following every nuance of the workings in the European Commission. He says, "The decision by the European Union finance ministers to give the go-ahead to streamline the bloc's payment services will have an significant impact. We estimate the impact to be in the region of €13b to €29b. There will be far more competition in payments processing - new entrants in the payments market like credit card companies, bank clearing houses -and completely transparent pricing. Good for the customer, not so good for banks.

“There are still many issues to be resolved, and it is taking longer than planned, but they are getting there. This is important to us all as more than 23 billion payments are made in the EU every year the equivalent to €52,000b/$67,600b/£34,800b.

“The plan is to make cross border transfers more efficient and cost effective. Our task at CapGemini is to monitor and make representations on behalf of the payments industry at a crucial time when major decisions are being taken."