BNY Mellon has issued a white paper that summarises the transformational changes taking place in the payments space and analyses survey results from more than 100 banks to describe the strategies being employed by banks to align themselves with the emerging payments environment.
BNY Mellon has issued a white paper that summarises the transformational changes taking place in the payments space and analyses survey results from more than 100 banks to describe the strategies being employed by banks to align themselves with the emerging payments environment.
Available on the BNY Mellon website, ‘Reinventing Payments in an Era of Modernization’ is co-authored by Tony Brady, head of global product management for BNY Mellon Treasury Services, and Chris Mager, head of global innovation within BNY Mellon Treasury Services’ global product management group. The paper also features perspectives on payment modernisation from Steve Ledford, senior vice president, product & strategy for The Clearing House; Wim Raymaekers, head of bank marketing for SWIFT; and other product experts and technologists from BNY Mellon.
Reviewing the factors that are driving the changes taking place in the payments space, the authors point out that ecommerce has radically changed consumer expectations regarding the levels of ease, efficiency and transparency that should surround transaction experiences. They also detail the challenges that the banking industry needs to overcome – notably network effect, the creation of standards conducive to integration and ongoing innovation, and regulatory compliance – in the development and deployment of payment innovations. The industry’s strategic response to these challenges is discussed under three broad headings: enhancements being undertaken by banks separately; initiatives being undertaken by banks collectively as part of industry groups; and the management of relationships with fintechs that range from competition to collaboration.
Bank clients have a great deal at stake in terms of understanding the strategy their bank is employing, and some of the study’s most interesting findings report on survey responses from banks that detail the level of engagement in payment innovation across the industry, attitudes of bank executives toward the principal client benefits of payment advances, and expectations on the part of survey participants in terms of the long terms prospects for fintechs in the payment space.