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A new standard for paper transfer forms (TUP) – and related banking business processes – will be rolled-out in 2025 in Luxembourg, aiming at adapting the existing framework to evolving banking practices and needs. The ABBL, the Luxembourg banks and VBS are collaborating to shape the new model.

Did you know that Luxembourg banks still handle 2 million paper transfer forms (or « Titres Universels de Paiement » / TUP) annually?

Despite a decline in usage, these transfers are still part of the banking landscape. This presents various challenges for banks, such as integrating these forms into their IT systems, managing increasing unit processing costs, and adapting to evolving regulatory requirements (including the ISO20022 standard).

In response to these challenges, Victor Buck Services, supported by the ABBL, has engaged in discussions with banks to enhance this situation. Throughout the second half of 2023, we have brought together the largest banks in Luxembourg on several occasions to jointly redefine the operational model for the next 5 years, reflecting the current banking practices and needs. The goal? Simplify and standardize the format of these forms and optimize the entire process, from creating a transfer to its processing by the bank.

As a support PFS and expert in outsourcing banking processes, the VBS team shared its expertise and provided advice in the development of the new framework. VBS has been digitizing transfer forms and integrating them into clients IT system for several years, which resulted in a good understanding of the challenges and opportunities of this business process.

The new model includes:

• A new transfer form compliant with the ISO20022 standard
• Enhanced anti-fraud controls
• Consolidated services : transfer forms digitization and validation
• Improved monitoring interface for bank personnel

Banks will be able to process transfer forms faster and more efficiently, leading to an enhanced customer experience. Additionally, the shared model will ensure consistent service quality with controlled costs.

The new process to digitize the TUPs will be implemented in 2024 and progressively rolled-out in Luxembourg banks in 2025. The creation of the new transfer form is ongoing. Short-format transfer forms currently in use will no longer be accepted by the banks. However, long-format transfer forms can still be used until November 2025.

Read more about Victor Buck Services digitization service here.