The payments industry is undergoing unprecedented change. The advent of ISO 20022, real-time/instant payments and SWIFT gpi has refocused the attention of banks onto their payment systems and the lack of investment into technology and processes over the years. Indeed, there is irony in the fact that even though payments are such an integral part of a bank’s business, most have regarded payments as a back-office utility in which investment into upgrades have occurred only when absolutely necessary. But just as outdated core banking legacy systems are similarly having to be upgraded, banks are facing a critical junction – they need to determine if their future payments systems and core banking platforms should be intertwined or separated from one another.
Historically, impetus for change in the adoption of new payment hubs has been dictated either by a regulatory change, or because a piece of technology has come to the end of its lifetime and cannot meet modern demands. Due to recent significant changes in payments processing, banks are now in a position of having to rapidly choose how to progress. The question then becomes: Should payments be separate from the core banking system, or should the core banking solution also handle payments?
The Payments: Your Core Business or just Business for your Core? report analyses a number of factors that can help a bank understand which is the best path forward for them. The report emphasizes the importance of banks implementing a forward-looking payments strategy incorporating the following aspects:
- Scale and volume of electronic payments
- Proliferation and acceleration of new payment types
- Resiliency and reliability of processing solutions
Learn more about the pros and cons of each appproach by downloading your copy of the report, below.