Deutsche Postbank AG has taken on the settlement of cross-border euro payments for the Eurogiro network. The Bonn-based bank, a major payment transactions service provider, saw off competitors from several European countries to be appointed euro settlement service provider. Operations got off to a successful start at the beginning of February. "We took on the 22 banks already linked up all at once. The collaboration between Postbank and experts from SAP, Eurogiro and Nordea has been outstanding", states Dr. Susann von Gunten, who is responsible for international relations at Postbank.

The euro settlement service for Eurogiro members, launched in 2002, replaces the conventional, laborious procedure, in which every member bank in the Eurogiro association had to hold accounts with all the other member banks to settle payment transactions. Instead, Postbank, as the euro settlement service provider, now manages an individual account for each member bank, in which all debit and credit payments are combined. This reduces the administrative expenses and makes liquidity management easier for the members. In addition, there are a large number of planning and reporting services that make cross-border payments in euros easier.

The position of euro settlement service provider for the Eurogiro network is assigned on a fixed-term basis. The mandate can be extended for a further three years following a one-year trial phase. Postbank has taken on the role from the Nordea Bank, Sweden, which provided the settlement service for the Eurogiro members up to the end of January.

The Eurogiro network was originally a union of European postal banks and postal organizations for fast, low-cost and secure settlement of cross-border payments. The impressive performance and innovation levels of the Eurogiro network are attracting increasing numbers of banks and organizations from outside Europe. The network currently has 38 members in 37 countries.