We are in a period of unprecedented change in Payments and Transaction Banking. Our industry faces a significant number of disruptive factors including regulation, ISO20022 and scheme-transformation. Bank customers are awakening to the potential offered by new products, new channels and new services – often from unfamiliar providers. Regulatory change is loosening the grip of traditional providers on the transaction processing landscape.
As competition and innovation increases, revenue opportunities are moving in the opposite direction. Traditional payment revenues rely on wafer-thin margins, which are getting thinner. Banks that rely solely on building payments volume may struggle to see the benefits in their bottom line.
But the new payments world offers the potential to build new revenue streams, with opportunities arising through innovation and imaginative use of enriched data.
Should Payments be managed as a service, focusing on maximising efficiencies and minimising cost? Or is it time for Payments to be managed as a business, with its own P&L that understands both the costs and the revenue opportunities?
This is a strategic choice for banks which we explore in this paper.
Click the link below to view our summary document that provides you with an overview of consumers behaviours within the sector, customer-centric business payments and how we can help and support you through these unprecedented times.