Collaborating for cross-border payments transformation
Posted: 3 March 2017 | Bana Akkad Azhari, Head of Sales & Relationship Management MENA and the CIS, Treasury Services EMEA, BNY Mellon | No comments yet
As technology continues to evolve, the need to enhance the cross-border payments experience is becoming ever more evident. Bana Akkad Azhari, Head of Sales & Relationship Management MENA and the CIS, Treasury Services EMEA, BNY Mellon, discusses how banks are working together to deliver an enhanced payment experience to clients…
Fintech innovation is transforming the payments landscape. New technology developments are emerging faster than ever before, driven by the growing culture for ‘on demand’ services, new regulatory requirements, globalisation, and the increasing number of fintechs that are challenging more traditional practices with cutting edge concepts and solutions that appeal to the tech savvy society of today. This convergence of factors is acting as a catalyst for banks to take action and modernise payments.
Mission: cross-border payments
Undoubtedly, one of the key areas of focus is the enhancement of cross-border payments. Indeed, the existing infrastructures in place are far from optimal; typically taking three-to-five days to settle, cross-border payments are falling short of modern-day expectations. With domestic real-time payment systems emerging across the globe – and cross-border payment volumes growing, spurred by emerging market growth – banks need to be able to apply similar capabilities (including improved speed, efficiency and transparency) to global payments.
Of course, transforming the global payments ecosystem is no small feat, and the path to achieving such change is not completely clear. But what is evident is that collaboration is key to bringing about tangible, wide-reaching technology evolution, and banks are adopting a number of strategies in this respect to help drive progress.
Firstly, they are actively seeking out value-added partnerships with fintech companies; marrying the digital prowess of fintechs, with banks’ unquestionable payments industry expertise, established trust, working capital and extensive client reach – thus optimising innovation strategies and the development of new solutions.