FS Fast 5: Payments Modernization

Key insights to drive your payments modernization agenda forward in financial services.

To stay ahead in this rapidly evolving payments landscape, it's crucial to understand the latest trends and insights. We invite you to listen to the original recording of our LinkedIn Live discussion on payments trends and modernization in financial services. Watch the replay on LinkedIn and keep reading to discover key insights.

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Technology, new regulations and evolving consumer preferences are all causing significant changes in the payments industry. Online spending is growing at a rate of six percent year-on-year, and the entry of fintechs and big tech companies is disrupting traditional payment methods. Digital wallets are becoming more prevalent, and the push for seamless omni-channel experiences is gaining importance.

ISO 20022, a global standard for financial messaging, is enhancing cross-border interoperability and data richness, with 30 to 40 percent more data traveling with each payment. This standardization improves payment experiences and enables value-added services. Instant payment systems are gaining traction, with higher transaction limits expected to boost adoption. These systems offer faster and more efficient payment processing, aligning with the growing demand for instant transactions.

ISO 20022 is the burning platform in the US and the biggest watershed moment in payments globally.

Courtney Trimble

US and Global and Head of Payments, KPMG LLP

Stablecoins, pegged to stable assets like the US dollar, are emerging as a more stable alternative to traditional cryptocurrencies, and regulatory frameworks are being developed to support their growth. Open banking is advancing, allowing better data sharing and consumer control over financial data, with tier one banks already compliant with new standards. AI is being used to combat fraud, match incoming payments with block lists and manage liquidity, enhancing security and personalizing customer experiences.

FS Fast 5: Insights to drive your payments agenda forward

Develop a holistic payments strategy

A comprehensive payments strategy is the foundation of any modernization effort.

Evaluate potential vendors and partners

The market is saturated with technology solutions and partners, making it essential to conduct a thorough analysis to identify the best fit for your bank.

Modernize your payments infrastructure

To support both legacy and new payment types, banks must modernize their payments infrastructure.

Develop strategic differentiation and commercialization opportunities

To stand out in a crowded market, banks should identify and develop value-added services.

Manage payments risk and compliance

The payments ecosystem is complex and constantly evolving, making it crucial to proactively manage risks and ensure compliance.