A new survey by the transaction data management specialist Intix, has revealed that European banks are struggling to meet the European Union’s upcoming deadlines for mandatory instant credit transfers.

The research aimed to evaluate the state of instant payments across the European banking sector. Led by Intix, the survey explored readiness levels and compliance with key regulations, including ISO 20022 standards, as well as the readiness of banks as they prepare to meet the EU’s Instant Payments Regulation, which takes effect in January 2025 for receiving instant payment transactions and October 2025 for sending instant payment transactions.

Key findings from the survey include:

• Only 33% of respondents reported that they are ready to meet the EU’s instant payment deadlines. A further 41% claimed they are prepared but have limitations, while 25% said they are not ready to comply with the regulations at all.

• Compliance with sanction screening, anti-money laundering (AML) and fraud detection requirements, including Verification of Payee check, was identified as the top concern.

• Respondents cited difficulties in meeting the mandated 10-second 24/7 service level agreement (SLA) and coping with the increased message volumes.
  The revealing findings show that many banks are facing significant challenges when it comes to implementing real-time payments capabilities, meeting the mandated 10-second transaction window, and complying with AML and fraud detection protocols. With the regulatory deadlines fast approaching, Intix’s survey indicates the growing need for improved processes and technologies to meet these goals and ensure compliance. 

Intix’s survey found that most banks are prioritising investments in risk and compliance to prepare for these upcoming changes. Notably, 42% of organisations are dedicating the majority of their budgets to regulatory compliance. Payment engine adaptation ranks as the second-highest priority, with 33% of banks identifying it as their primary area of investment.

Banks show similar alignment in their approach to sanction screening and fraud detection. Nearly 42% of respondents plan to implement a combination of pre-screening, real-time, and post-screening measures to address these challenges—making it the most popular strategy. A mix of pre-screening and real-time screening follows at 25%. With only 17% of organizations relying solely on real-time screening measures.

The survey also revealed that 50% of banks are still in the process of adopting the ISO 20022 standard, which is gaining traction across the financial services sector. Nearly 40% of organisations reported that ISO 20022 is already their primary standard, while only 8% indicated they have no experience with it. The results sourced by Intix underscore the growing adoption of this particular global standard.

Speaking on the findings, Yoann Vandendriessche, Chief Product Officer at Intix, commented: “The survey results highlight the immense pressure that European financial institutions are under as they race to meet the new regulations. While a third of respondents are confident in their ability to comply, the majority are facing substantial obstacles.

“Banks that are lagging must move quickly to close these gaps. Investment in advanced data management and compliance technologies is essential to achieve the real-time monitoring and reporting capabilities required under the EU’s Instant Payments Regulation. It’s clear that this will be a demanding period with pressure mounting to meet deadlines and avoid potential fines.”

The research highlights the increasing demand for modern solutions that enable banks to navigate the complexities of instant payments, ensuring they have the visibility and control needed to meet regulatory requirements and customer expectations. This need is met by platforms like Intix, which empower banks with the capability to monitor, track, and report on their entire transaction landscape from a single interface.