"Nordic payment infrastructure - is it time for a domestic focus?" is the subject of Åkerman's speech. Åkerman has worked in the financial sector for more than 30 years, specializing in settlement and payments. She has spent the last eight years working to shape the Nordic payment infrastructure that will be based on ISO 20022.

Finextra had a conversation with Åkerman regarding the lessons that have been learned in the Nordic region over the past few years and our potential future direction.

Åkerman responded, "The decommissioning of P27 serves as a crucial reminder of the importance of a predetermined project scope and close management as well as maintaining realistic expectations and market focus," when asked what lessons we have learnt from the downfall of P27.

The P27 instance, she continues, "teaches us that managing the size of the project, adhering to strict delivery schedules, and navigating the complexities of multiple jurisdictions can present significant challenges and hinder success."

Åkerman points out that the original purpose of P27 was to replace antiquated payment infrastructures. But as time went on, the project's scope expanded to cover other system enhancements as well as brand-new goods and services. According to her, there were major difficulties in setting priorities as a result of the expansion, since it was getting harder and harder to rank the value of the different project components. As a result, the project became more complex, and the crew had to overcome more obstacles.

She also mentioned the several regulatory obstacles P27 faces. She says, "There was no clear regulatory guidance, which resulted in more time spent proving compliance and increased risks to the new infrastructure design."
Other market-driven initiatives, like central banks' participation in the Swift transition from MT to XML standards and the requirement to update real-time gross settlement payment infrastructure, brought dependencies and risks, which added to the already existing constraints. The project became even more intricate as a result of these dependencies, which occasionally required reordering of work."
 

Eventually, this resulted in the addition of additional tasks to P27's delivery schedule. According to Åkerman, "having a clear prioritization strategy and maintaining focus on targeted standardization requirements are crucial lessons learned from this experience."

It's crucial to remember that Åkerman accepts that the objective of developing a unified and standard payment infrastructure throughout the region has not changed, notwithstanding the difficulties encountered. She emphasizes how the NPC is still very much working toward this objective. Payment service providers throughout the Nordic region will use the Nordic Payment and Settlement Mechanisms and Account and Clearing Houses' modernized clearing and settlement platforms, which are based on the rulebooks and implementation guidelines provided by the NPC.

"There is already significant progress in achieving harmonisation for ordinary credit transfers, in terms of using SWIFT-standards. However, challenges arise when attempting to facilitate instant cross-border payments that typically follow local formats," she says in response to the question of whether there is hope for a harmonised cross-border payment infrastructure. However, a number of projects are in motion to put in place immediate payment systems that can facilitate smooth international transactions.

Åkerman provides several examples, including the publication of a rulebook by the European Payments Council (EPC) for processing One-Leg-Out credit transfers, collaboration between TCH and EBA through the IXB initiative to facilitate instant cross-border payments, pledges by ASEAN 5 to execute a multilateral cross-border program based on the BIS Project Nexus, and the establishment of bilateral ties between nations like Singapore and India.

"These initiatives show the growing recognition of the need for instantaneous and seamless cross-border payments," the speaker says.

"I hope for participants to develop a clearer understanding of the direction we are heading in the payments landscape, enabling them to make informed preparations for upcoming opportunities and improvements for payment users in the Nordics," says Åkerman in reference to the NextGen Nordics event.