Memo Bank joins the shortlist of banks directly connected to STEP2 clearinghouse


Memo Bank, the first independent bank created in France in 50 years, is now a direct participant in the automated and pan-European clearinghouse STEP2. This integration enables Memo Bank to offer faster payments to its SME clients, which strengthens its independence and confirms its unique positioning in the market.

Memo Bank joins the shortlist of banks directly connected to STEP2

Developed by EBA Clearing, STEP2 is the main clearinghouse for transfers and direct debits in the Eurozone. Approximately 5,000 financial institutions – payment institutions, e-money institutions, credit institutions – work with STEP2 for their transactions in euros.

Among these financial institutions, only banks (credit institutions) are allowed to be directly connected to the clearinghouse, and earn the status of “direct participant”. The other institutions need to be sponsored by a direct participant to send transfers and direct debits to the clearinghouse. In December 2021, STEP2 counted almost 5,000 indirect participants, and only 54 direct participants(1) - among which Memo Bank.

Memo Bank took advantage of its direct participation to become one of the first European banks to integrate the new Continuous Gross Settlement (CGS) system offered by EBA Clearing. This modern settlement system will speed up Memo Bank’s transactions with other banks.

Memo Bank will provide smoother & faster payments to its customers

Memo Bank started its operations last year as an indirect participant in the clearinghouse. As such, it was dependent on the management rules of the direct participant connected to STEP2. Thanks to this new direct integration, Memo Bank will now define its processes in complete autonomy and fully leverage its in-house technology.

For example, Memo Bank plans to accelerate the speed and frequency at which its customers’ operations are processed, by extending cut-off times. Unlike most traditional banks processing operations initiated after 11 am the next morning, Memo Bank will process these transactions on the same day. Memo Bank also plans on expanding its product offering with a new direct debit payment solution.

Memo Bank holds a unique positioning in the European banking market

Two unique assets enabled Memo Bank to be directly connected to STEP2 Clearinghouse just after a year on the market. First of all, Memo Bank received a full banking license from the French Autorité de contrôle prudentiel et de résolution and the European Central Bank in June 2020. Secondly, Memo Bank developed an in-house and state-of-the-art core-banking system, from scratch.

For Jean-Daniel Guyot, co-founder and Chairman of the Executive Board, this new integration proves again that Memo Bank is a leading player on the market: “We are obsessed with offering the fastest and most efficient banking experience to our customers. Our ambition is to build modern financial foundations for these companies, to make them as competitive as possible. This integration into the heart of the European payments system is further proof that we will stop at nothing to achieve this goal.”.

Speed of execution is precisely what business owners working with Memo Bank appreciate the most. Memo Bank has already planned to be directly connected to RT1, another payment system managed by EBA Clearing. This new connection will allow Memo Bank to offer instant payments to all its customers. The company expects this service to be a game changer for SMEs to help manage the treasury more efficiently.

(1) Source: List of direct participants for transfers (SCT), Core Direct Debit (SDD Core), B2B Direct Debit (SDD B2B), available on EBA Clearing.