market drivers impacting the payments industry · 2020-06-04 · market drivers impacting the...

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© Worldline

Enabling Innovation

Through Payment Platform Transformation

Thomas Feiler Head of Payments Product Management equensWorldline

Market drivers impacting the payments industry Create a multitude of challenges for banks

Examples of impact

Mature domestic markets turning global and increasingly competitive

Continued growth in electronic transactions

A growing number of real-time payment systems going live

The commoditization of payments makes it difficult for customers to tell banks apart

The further industrialization of payment processing on a global scale

Banks allocating substantial costs and capital expenditure to non-differentiating payment infrastructures

New regulations

Customer behavior

New technologies

Competition

2 October 2018 | © equensWorldline | SIBOS Sydney

Outdated legacy systems cause a core concern

3

The biggest inhibitor of necessary payments transformations

October 2018 | © equensWorldline | SIBOS Sydney

1. Source: Accenture, “Back-office, it’s time to meet the customers” 2. Source: Finextra, “Payments transformation: Modernising to stay relevant in the digital age.” 3. Source: Financial News, https://www.fnlondon.com/articles/banks-face-spiraling-costs-from-archaic-it-20170912

agree that

business opportunities are not realized due to outdated core systems1

2/3 of leaders

agree that existing systems are the

biggest inhibitor of necessary payments

transformations2

71%

spent on existing software that needs constant updates to

meet regulatory requirements3

80% of IT budget

4

“There is no way you can survive in a globalized internet economy with systems that are built for batch overnight updates – it is ridiculous” Chris Skinner

Need for a modern payment processing platform

5

Supporting a redesign of the payment experience to meet client demands


Improves time-to-market for new products and services

Delivers economies of scale through the bundling of transactions across several parties

Is flexible enough to handle different payment types and adapt to future needs

Supports compliancy with current and future regulations

Delivers 24/7 capabilities as a global and connected world demands systems to be available always

Enables them to extract valuable analytics from transactional data

Is scalable for large transaction volumes without a negative cost impact

Enables modern open connectivity options for sending, receiving and sharing data (through informed consent) with third parties

Traditional payments value chain is challenged

6

As bank’s role is now built around tailoring for individual customer needs


7

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change” Charles Darwin

Considering the options in the architecture

8

To successfully compete in the digital payments arena


High degree of familiarity

Costlier in the longer run

Availability of resources with required knowledge of the original system

Upgrade existing system

In full control of development

Very costly to build and maintain

Difficulty on achieving scale benefits

Build in-house

Shared R&D and compliance costs with other clients

Likely bespoke development and integration needed

Upfront investment (i.e. license cost)

Buy off-the-shelf

Agile and innovative best of breed system

Lengthy process to find the right partner

Thorough and lengthy trial and testing of the invented solution

Partner to invent

Requires streamlining of the current processes

Minimize complexity, costs and risk

Free up resources to focus on core competencies

Outsource to third party

Outsource to a provider with experience, expertise, integrity and a long term commitment to the payments industry

Choosing the right ambition level

9

Based on the desired business value and business model impact


Source: Accenture

10

where do we fit in?

Payment Processing Back-Office

11

How it fits into your eco-system

Client Interaction

Bu

sin

ess

In

teg

ratio

n

Layer

Bank’s systems

Account Administration

Bu

sin

ess

In

teg

rati

on

Layer

Credit Approval

Back-Office Payments Processing Platform

SEPA Credit Transfer

SEPA Direct Debit

SEPA Card Clearing

High Value Payments

Multi-Currency Payments

Domestic Cheques

Paper-based Payments

Sanctions Screening

Anti-Money Laundering

SWIFT Service Bureau

SWIFT Gateway

Payments Entry or Repair

Payment Investigations

Transaction Archiving

Reporting

Billing

Supporting Services

Manual Services

Connectivity Compliance Paper-based Mass Payments Individual Payments

Multi-device client channels

Banks Banks

Instant Payments

International Cheques

Next Generation Messaging

Master Data Management

Corporate Access

Interfacing to Market Infrastructures

ACH EBA TARGET2 SWIFT TIPS

Single GUI and Data Repository

Domestic Payments

Liquidity Management

Liquidity Management


Your benefits

12

From using our Payment Processing Back-Office

Lower TCO and expenses for payments processing

Banks can stay focused on their core business

Reduce complexity and stay compliant with regulation

Cost transparency and changing from fixed to variable costs

Reliable services based on 50+ years experience

Improved time-to-market for new products and services


Are payments a strategic product for your bank?

13

Dozens of clients trust our software and services


For more information please contact:

Thanks

Thomas Feiler

equensWorldline is an expert leader in e-payment services and a registered trademark of Worldline. Confidential information owned by equensWorldline, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from equensWorldline. © equensWorldline – For internal use

Head of Payment Product Management

+49 69 2565 54264

[email protected]

market drivers impacting the payments industry · 2020-06-04 · market drivers impacting the...

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