Bacs Affiliates Meeting slides presented to you by Interbacs LTD. www.Interbacs.com

1. © 2014 Bacs Payment Schemes Limited
26 NOVEMBER 2014
ANNE PIECKIELON
SERVICE USER COMPLIANCE

2. © 2014 Bacs Payment Schemes Limited
KEY PERFORMANCE INDICATORS
2
Customer measures are the proportion of customers with no recurring redirections X months following their switch date
SUN measure is the proportion of SUNs being managed to compliance
Objectives Target
Current Month %
of Total Volumes
Previous
Month % of Total
Volumes
Customers:
3 months following switch date 95.0% 82.1% 79.5%
6 months following switch date 99.0% 84.7% 84.4%
9 months following switch date 99.9% 88.3% 88.0%
SUNs:
SUNs with >= 10 re-directions @6 months under
active management
100% N/A N/A
Non-compliant >6 months after switch date N/A 10,495 10,426

3. © 2014 Bacs Payment Schemes Limited
SERVICE USER NUMBER SUMMARY
3
SUN redirection volumes
Baseline % of Total
Redirection
Volumes
Current Month % of
Total Redirection
Volumes
Count of SUNs in this
bracket
Percentage of total
SUNs
Volumes >= 1000 17.00% 26.08% 14 0.08%
Volumes between 750 – 999 4.40% 2.03% 4 0.02%
Volumes between 500 – 749 5.56% 3.16% 8 0.05%
Volumes between 250 – 499 8.91% 8.14% 36 0.21%
Volumes between 100 – 249 10.74% 12.03% 129 0.75%
Volumes between 50 – 99 10.73% 9.25% 210 1.22%
Volumes between 10 – 49 20.77% 18.87% 1,449 8.42%
Volumes between 2 – 9 16.17% 14.98% 6,724 39.07%
Volumes =1 4.25% 5.46% 8,635 50.18%
“Top
200”

4. © 2014 Bacs Payment Schemes Limited
PROGRESS TOWARDS COMPLIANCE
4
 In last four months:
 137k redirections cleared, but 133k new redirections added
 7,207 SUNs cleared, but 6,571 new SUNs appearing as non-compliant
 Overall, slowly reducing number of non-compliant SUNs, but those that remain are
increasing their volumes
 By end of November some 20,000 SUN will have been contacted by banks or Bacs
 Positive responses (investigating/resolution defined) from circa 75%
 Seeing some slippage in some of these promises
 Campaign is now focussing on follow-up contact and newly non-compliant SUN
(1,500 per month)

5. © 2014 Bacs Payment Schemes Limited
26 NOVEMBER 2014
ANNE PIECKIELON
STRATEGY UPDATE

6. © 2014 Bacs Payment Schemes Limited
PROGRESS
6 BACS STRATEGY UPDATE
Board strategy day in October endorsed
direction and scope
Three main themes:
1. Focus on customer needs of segments
where products not as widely used
2. Update central services and infrastructure
3. Respond to the PSR’s concerns over
governance and stakeholder engagement
CustomerCustomer Submitter Receiver
Bank Bank
Scheme
Operational
integrity
Service
compliance
Clearing
Settlement
Added value service
Infrastructure services
Regulatory oversight

7. © 2014 Bacs Payment Schemes Limited
POTENTIAL DEVELOPMENTS
7 Bacs Strategy Update
Product enhancements
• New DC credit models
• Review of DC guide & rules
• Review DD Guarantee and functioning of
the indemnity process
• Business-to-business DD
• DD with greater customer control
Updated central services and infrastructure
• D+1 clearing cycle
• Central mandate management
• Central service user management
• Cyber security, access and identity
management

8. © 2014 Bacs Payment Schemes Limited
PSR PROGRESS
8 GLOBAL CHANGES IN PAYMENT SYSTEMS
OPPORTUNITIES FOR BACS
• Consultation published 13 November,
responses by 12 January 2015
• Proposes Strategy Forum to develop national
payments strategy
• Schemes seen as complimentary rather than
competitive
• And central to strategy development
• But need changes to governance and
customer engagement
• How can we best achieve that?