the future of payments— - bny mellon · payments operation into the future, please feel free to...

SURVEY RESULTS

TREASURY SERVICES

THE FUTURE OF PAYMENTS—A Corporate Perspective

Payment digitization. Real-time payments. Artificial Intelligence (AI). Application Program Interfaces (APIs).

How are rapidly-evolving developments like these impacting the corporate treasury space? And what does this level of change mean for the industry’s collective future?

Enclosed are the comprehensive results of a recent in-depth BNY Mellon Treasury Services survey (N=55) that asked a set of U.S. domestic and multinational corporations about these issues. With questions on the level of impact their organizations are experiencing from, and expectations they have for, the many important payments system changes that are occurring in the financial industry, the survey gathered recipients’ feedback on:

• Key pain points in today’s payments processes, and what’s needed to improve those issues • Using digital interactions to improve tracking, inquiries and investigations for payment efficiencies• Incorporating data intelligence and analytics to improve payment processes• Realistic timeframes for incorporating the latest industry payment tools

Commentary and trends gathered from these survey results, and discussions among payment industry professionals on these topics, are combined and reported in our companion whitepaper, “The Future of Payments – a Corporate Perspective”. We invite you also to read this accompanying thought leadership paper for in-depth insights we gleaned from the survey feedback presented herein.

BNY Mellon is committed to helping you stay current as you seek to embrace and derive value from these new and emerging technology-driven capabilities. As part of that commitment, we strive to provide real, actionable insight into these issues to help you navigate your plans to expand and improve your day-to-day payments-related activities.

For more information on BNY Mellon Treasury Services’ comprehensive efforts to help move your payments operation into the future, please feel free to contact us at [email protected].

1

With respect to payments, please indicate the following possible areas of improvement.

MeasureReliableSecureInformation richEasy to executeCost (internal within your company)Recipient SatisfactionCost (banking fees)Transparency

54%

51%

51%

46%

44%

43%

36%

32%

22%

23%

34%

41%

46%

32%

56%

45%

24%

26%

15%

14%

10%

24%

8%

24%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of Total Number of Records

High Medium Low

Organizations representing the following industry segments participated in the survey: · Communications, Telecom, Media and Cable· Technology· Manufacturing· Auto and Trucking· Energy, Utility· Healthcare (Insurance, Provider, Pharma, Healthcare [manufacturer/distributor])· Services· Transportation· Real Estate· Mortgage· Other

2

For payment initiatives that might have an impact on your company, how would you rate your company’s readiness for the following?

2

3

2

2

4

MeasureLockbox

Vendor payments from check to electronic

Expanded use of commercial cards

Same-Day ACH paymentsConsumer and/or business-to-business payments made to your company online or via phone

SWIFT global payments innovation (gpi)

Moving from cards to lower-cost alternatives

Tokenized payments

Real-time payments

Blockchain or Distributed Ledger Technology

Use of “bots” (robots) for payment and/or reporting

Use of (AI) for payments and/or reporting

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ready now Less than a year 1-3 years 3-5 years More than 5 years


60%

43%

32%

31%

29%

29%

23%

17%

11%

6%

6%

6% 19%

17%

9%

31%

29%

20%

20%

23%

26%

15%

29%

23% 11% 6%

26% 2%

9%

43%

41% 3%

6% 6%37%

23% 9% 20%

6%

9%

2%

2%

4%

42%

54%

43%

54%

43%

49%

17%

6%

20%

17%

17%

23%

Which payment initiatives do you believe will have an impact on your company (within the next 3 years)?

MeasureVendor payments from check to electronic

Lockbox

Real-time payments

Tokenized payments

SWIFT global payments innovation (gpi)

Same-Day ACH payments

Use AI for payments and/or reporting




Consumer and/or business-to-business payments made to your company online or via phone


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%% of Total Number of Records

Very high impact High impact Low impact No impact

39%

32%

29%

8%

14%

15%

16%

17%

18%

19%

23%

26%

49%

38%

37%

40%

23%

36%

34%

42%

29%

38%

42%

33%

7%

16%

27%

30%

35%

36%

39%

25%

32%

38%

28%

39%

5%

14%

7%

5%

20%

8%

8%

17%

24%

8%

17%

19%

3

Which payment initiatives do you believe will have an impact on your company (within the next 4 years or more)?

MeasureVendor payments from check to electronic

Consumer and/or business-to-business payments made to your company online or via phone

Lockbox

Same-Day ACH payments




Tokenized payments


Real-time payments

SWIFT global payments ºinnovation (gpi)

Use of (AI) for payments and/or reporting

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Very high impact High impact Low impact No impact

26%

24%

24%

24%

19%

15%

14%

14%

11%

11%

11%

11% 49%

23%

57%

34%

50%

40%

50%

35%

41%

38%

32%

53% 9% 12%

15%29%

21% 18%

21% 15%

19% 27%

21% 15%

37% 9%

8%

20%

28%

34%

20% 11%

34% 31%

31% 9%

For payment initiatives that might have an impact to your company within the next 10 years, how would you rate the potential benefits of the following?

MeasureReduced risk

Important to our customers

Increased reliability

Reduced cost

Ease of execution

Important to our vendors

Enriched information

Important to our employees

More transparency

Increased speed of payments

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Significant Considerable Low

77%

72%

15% 8%

23% 5%

8%

3%

25%68%

65% 33%

11%29%61%

29% 11%

10%

18%

15%

18%

61%

60%

56%

51%

50%

31%

26%

33%

33%

4

Which of the following are necessary to drive change in your company with respect to embracing future payment efficiencies?

Platform support (ERP, Treasury Workstation, other internal payment systems)

Process re-engineering to increase automation and offer seamless (timely, accurate) services to our customers

Standard, consistent and comprehensive payment and message format across country infrastructures and banking systems

24%

42%

34%

Please indicate on a scale of 1 to 5 (1=Not Challenging and 5=Most Challenging) how challenging you foresee the items below in achieving the ideal future payment experience.

MeasureAvailability of IT resources to implement and maintainCompeting priorities

Level of investment required

Don’t see measurable benefit (e.g., ROI)

Appetite for change

Lack of in-house expertise

Don’t fully understand my options

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Challenging 3 (Mid Range) Not Challenging

69%

66%

57%

33%

31%

32%

18% 48%

42%

41%

38%

24%

24%

17% 14%

10%

19%

30%

28%

26%

35%

5

What are the top five common reasons for payments/investigatons/enquiry tracking that interrupt straight through processes within your organization today? (Choose all that apply.)

For the following, please rank their importance on a scale of 1 to 5 (1=Most Important and 5=Least Important) to improving your company’s payment process.

MeasureLive tracking services to capture the payment status, inquiries, and cash positions at any point in time

Electronic bank account management and cash monitoring and efficient management of accounts and liquidityReal-time payment validations and directory look up services for better straight through processing and intelligent enrichmentEnhanced analytics and business intelligence to facilitate decision making, identify trends for business opportunities and achieve capital efficiencies

Flexibility in access for enhanced communication with our bank(s)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% of Total Number of RecordsMost Important 3 (Mid Range) Less Important

69%

58%

54%

50%

46%

36%

28%

23%

43%

29%

41%

15%

23%

8%

24%

23%

MeasureReconciliation issuesPayment formatting errorsCompliance screeningVendor inquiryDispute management Bene non receipt of fundsAudit requestLegal obligationOther

0 2 4 6 8 10 12 14 16 18 20 22 24 26

Number of Responses

2423

18

1713

12

114

3

6

Do you think that direct peer-to-peer system interaction through APIs will bring a fundamental shift in how corporations communicate with their banking partners, and is a step towards overcoming some of the current challenges?

Yes

No

Too early to tell

47% 51%

%

How far away do you think your company’s first meaningful API interaction with your bank would be?

LengthReady now

Less than a year

1-3 years

3-5 years

More than 5 years

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%


Ready Now Less Than a Year 1-3 Years 3-5 Years More Than 5 Years

17%

7%

20%

54%

2%

7

2

What would be the best API use case that will solve some of the current challenges in payments and is most likely to add value for your company’s payment process?

Would you be looking to use your banking partner(s) to integrate and facilitate API services?

Yes

No

Not sure

55%

5%

40%

Measure

Account reconciliation

Live tracking, amendment and cancellation of payment instructions

Virtual investigation/enquiry center with up-to-date status tracking

Exception management through direct system integration

In context advisory (e.g., pertaining to cash position and up-to-date tracking on status)

Directory look ups, real-time validations and payment assistance

Payment initiation to providers via API

Intelligent decision making with systems and models designed to emulate human reasoning and decision making processes through machine/deep learning and neural networks

Interaction with a “trader” bot for FX rate

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Must Have Nice to Have Not Needed

50%

46%

45%

43%

28%

26%

17%

6%

5%

44%

49%

47%

51%

58%

68%

69%

75%

53% 42%

19%

14%

5%

14%

5%

6%

5%

8%

8

How far away do you think your company’s first meanful AI implementation would be?

LengthReady now

Less than a year

1-3 years

3-5 years

More than 5 years

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34%


Ready Now Less Than a Year 1-3 Years 3-5 Years More Than 5 Years

9%

7%

32%

18%

34%

Which of the following would be your top use case for AI?

Use case measure

Auto-reconciliation and matching on manual intensive processesRevenue forecasting through pattern predictions and network analysisFraud detection and monitoring of payments based on predefined risk filters

Customer and market share analysis

Other

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%% of Total Number of Records

48%

23%

15%

10%

5%

9

bnymellon.com

BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally and may include The Bank of New York Mellon, 240 Greenwich Street, New York, NY 10286 , a banking corporation organized and existing pursuant to the laws of the State of New York and operating in England through its branch at One Canada Square, London E14 5AL, England. The information contained in this material is for use by wholesale clients only and is not to be relied upon by retail clients. Not all products and services are offered at all locations.

This material, which may be considered advertising, is for general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. BNY Mellon does not warrant or guarantee the accuracy or completeness of, nor undertake to update or amend the information or data contained herein. We expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon any of this information or data. Trademarks and logos belong to their respective owners.

©2018 The Bank of New York Mellon Corporation. All rights reserved.

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the future of payments— - bny mellon · payments operation into the future, please feel free to...

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