Deutsche Bank has successfully completed its technical and testing preparations for the Single Euro Payments Area (SEPA) Direct Debit Business-to-Business service, which starts on 2 November, with its launch client DKV Euro Service. The provider of transport sector services, covering fuel cards, tolls and other services, will be one of the first of many companies to use SEPA Direct Debits (SDD) for collections in Europe. The bank will also provide pan-European cash management services for Axa.

Over the past few months, both Deutsche Bank and DKV have co-operated closely to ensure that the client's treasury function will be able to take advantage of SEPA Direct Debits from the launch day on 2 November onwards. Preparations included not only technical customisation and testing, but also detailed project planning. As not all banks will be reachable for SDD from the beginning, a phased project approach was chosen. In the first stage, more than 1,100 debtors with accounts at Deutsche Bank were asked by DKV to sign SDD B2B mandates. Having now already received the vast majority of signed mandates, DKV will be able to submit the first files with SEPA direct debits on 2 November. Subsequent project phases have been defined to include all debtor banks in Europe throughout the course of 2010.

DKV, based in Düsseldorf, is a leading service provider to the transport sector in Europe, providing products such as fuel cards, toll services and VAT refund services through 43,000 service stations in over 40 European countries. "With so many corporate clients across Europe (up to 89,000), the SEPA Business-to-Business Direct Debit provides us with the long-awaited opportunity to facilitate and accelerate our European collections," says Thorsten Brühl, head of treasury at DKV. "We are therefore very pleased to be able to start using this instrument with Deutsche Bank from Day one, and hope to achieve wide 'reachability' with other banks as quickly as possible."

Karoline von Richthofen, product management, corporate payments, at Deutsche Bank, believes that cases such as DKV are a good example of how SEPA benefits companies that conduct business on a pan-European level. "For the first time, the SEPA Direct Debit provides the means to initiate collections across borders in Europe, whereas in the past companies had to open accounts locally and struggled with the complexities of different national direct debit schemes."

According to Marilyn Spearing, global head of trade finance and cash management for corporates, at Deutsche Bank, as a leading transaction banking provider and the largest Euro clearer, db has been a prominent player in promoting corporate interests across the banking industry in preparation for SEPA. "Our strategy is to make the long-term opportunities of SEPA an immediate reality for clients, and the project with DKV is an excellent example of our commitment to this goal," she says. "We are also in discussions with numerous other clients who are interested in taking advantage of the SEPA Direct Debit at an early stage."

• In other news, Deutsche Bank has been appointed as the pan-European cash management bank for Axa, one of the largest insurance companies in the world. As such, it will support the insurer's migration towards SEPA, with a particular focus on SDD.

According to Emmanuel de Rességuier, head of Deutsche Bank global transaction banking in France, the consultative approach adopted by the bank over the years has demonstrated its capabilities in the field of cash management in the French and European markets, ultimately leading to Deutsche Bank's landmark selection as Axa's pan-European cash management provider.

"We selected Deutsche Bank because of its ongoing investment in its technology platform and its growing leadership in the payments area," confirmed Jean-Paul Duval, of the treasury function, Axa France, who has developed a strong relationship with the Paris-based db team, providing an entry point into the wider bank. "Deutsche Bank's cross-border capabilities and its integrated approach across businesses, as well as regions, were decisive in our choice," he added.

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