Andreea Parneci, Societe Generale: Navigating The Instant Payments Revolution

Andreea Parneci, Deputy Head of Global Transaction and Payment Services at Societe Generale, which won Best Bank for Transaction Banking, explains how the bank is addressing the new regulatory requirements and building a unified global transaction banking model.

Global Finance: What are the most critical challenges facing treasury and cash management operations, and how is Societe Generale helping clients prepare for them?

Andreea Parneci: Globally, regulatory changes, particularly instant payments, are a significant challenge. The European Instant Payments Regulation mandated banks to receive these payments by January 2025 and initiate them by October 2025, requiring substantial technical and operational upgrades for both financial institutions and corporates. ISO 20022 harmonization is also a major step for global interoperability in streamlining operations and enhancing data quality. We support our clients so they can understand the coming challenges, anticipate the impacts, and adapt smoothly to turn constraints into opportunities.

In a faster and ever more digital world, fraud prevention has become even more critical. This has always been a key element for Societe Generale; we dedicate substantial resources to help protect our clients, leveraging AI and an exchange platform with digital signatures and advanced authentication. Finally, in a changing world, transitioning their business model remains a point of focus for our clients, with GTB [global transaction banking] solutions supporting their ESG strategy.

GF: How has your unified GTB strategy enhanced the efficiency of your treasury and cash management services for multinational clients?

Parneci: We currently support clients in over 40 countries. While acknowledging local specificities and regulations, our goal is to be the leading partner, providing consistent service and a comprehensive global solution across all GTB services, including cash management, trade finance, cash clearing, and supply chain finance.

Our objective is to address the full spectrum of our clients’ needs through a holistic lens, on a day-to-day basis. We also collaboratively develop solutions and shape the future of transaction banking with and for our clients. This needs-based approach is consistently well-received and mutually beneficial.

GF: What does it take to provide a seamless client experience?

Parneci: We empower our teams to deliver this approach by enhancing their skills and leveraging their extensive experience within the GTB world. Significant effort was dedicated to change management, particularly in training and recruiting, which has proven to be a highly positive development. This fosters valuable client interaction and expertise for Societe Generale staff.

In the current landscape, digital innovation and a seamless user experience are paramount. We prioritize offering numerous services and products that streamline processes and save time We have also implemented a comprehensive digital web interface, SG Markets, a global platform we share with clients that significantly improves efficiency and mitigates operational risks.

GF: How is Societe Generale leveraging its real-time capabilities to enhance its core cash management and cross-border payment offerings?

Parneci: We began our journey in instant payments as a pioneer in France in 2019, extended to Europe in 2021, and have worked since then, hand in hand with our clients, to develop a comprehensive set of APIs.

These include instant services and clearing system representation, which is instrumental in achieving our goal of a first-rate technical infrastructure capable of handling very large volumes and 24/7/365 monitoring/assistance. For instance, we offer our FX-BORDER API for 40 currencies from a single account, with FX rates in a few minutes, enhancing transparency and instant payment solutions.

While instant payments accelerate transactions, they also introduce risks and challenges for our clients. We provide advisory services, dedicated client support, implementation guidance, training, and webinars and workshops to ensure our clients adapt smoothly and turn constraints into opportunities.

The proximity and our capacity to assist our clients throughout their individual instant payment journey distinctly differentiates us. We believe this is how we can have a real impact and put the best of innovation at the service of our clients.