The introduction of ISO 20022, the new payments messaging standard, is set to revolutionise the payments industry. The existing infrastructures, including SWIFT MT messages and their proprietary equivalents, are no longer suitable for modern payment needs. By replacing them, the industry aims to create a messaging ecosystem that can facilitate an efficient, value-added payments experience for clients.
Of course, these benefits will come at a cost. Preparing for the new standard will require substantial efforts and resources from banks. It crucial that banks be fully apprised of the impending developments, understand what is required and have effective strategies in place. BNY Mellon’s Isabel Schmidt and Marcus Sehr explore in an article for the International Banker.
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The introduction of ISO 20022, the new payments messaging standard, is set to revolutionise the payments industry. ISO will replace existing SWIFT MT messages and their equivalents, which are unsuitable for supporting evolving transaction needs, as the format for the transfer of cross-border and high-value payment information. Crucially, the new messages will incorporate more structured, robust and comprehensive data, thereby driving enhanced speed and efficiency; reducing false positives, manual intervention and costs; and helping to pave the way to 100% straight-through processing (STP).
As these deadlines draw nearer, considerable efforts and resources from all participants will be necessary to meet the associated challenges. But, by establishing a clear transition roadmap, educating staff and upgrading their systems, banks – and their clients – can unlock the full benefits of ISO 20022.
The article can be read here
During the next five years, ISO 20022 is set to transform the payments industry. The migration will touch the payment lifecycle end-to-end and, as the implementation deadlines draw near, the implications and considerations are set to be far-reaching – requiring significant efforts and resources from banks and their clients.
The upcoming changes should not be underestimated. In the lead-up to and aftermath of the transition, banks will face a myriad of challenges. If they can overcome these hurdles – by establishing a clear, comprehensive strategy, educating and supporting their staff and clients, and preparing their systems – they have an opportunity to deliver a truly improved end-to-end payments experience for clients.
The article, published in Global Banking and Finance Review, can be read here.
Natixis Payments and Visa have partnered to launch Xpollens, the first end-to-end “Payments in a Box” offer that integrates a full range of innovative payment solutions for Fintechs, corporates and retailers.
Xpollens helps these players integrate a full range of payment services, from payment cards to instant payments through customer accounts. The integration of Apple Pay will help answer high demand for greater control, functionality and better user experience. Apple Pay will be available as soon as Xpollens’ solution goes live.
The news was covered by Finextra, PYMNTS, Fintech Finance, The Paypers, Ecommerce News, Infoplay, Fintech Insight.
In a commentary article for International Banker, Sindhu Vadakath, Senior Product Manager, Global Payment Services and Asia Payments, Treasury Services, BNY Mellon, takes a look at the introduction of the Second Payment Services Directive (PSD2) and the impact it will have on the core of traditional banking.
PSD2 requires banks to share their closely guarded customer data, opening the gates for the first time to third-party payment providers (TPPs), thus disrupting banks’ long-held monopoly on the payments sector. With an aim to improve transparency, customer rights and service, as well as the costs linked to the end-to-end payments process, the legislation allows TPPs to harness customer data to create cutting-edge products that can viably compete with bank offerings.
But this data-sharing, of course, is not without its risks – especially as TPPs cannot claim the same historical reputation for security and familiarity as their bank counterparts. As such, collaboration between these industry players is key to ensure a smooth roll-out of an efficient and secure payments service for customers in the new era of open banking.
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Albert Maasland, CEO of Crown Agents Bank, talks to GTNews about the future of SWIFT gpi and Ripple, noting that both are “obviously two key players” in the cross-border payments space.
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As part of a series of articles celebrating the 20th anniversary of GTNews, Daniel Verbruggen, Michael Bellacosa, Fred DiCocco and Matt Wells from BNY Mellon Treasury Services, come together to discuss the pivotal developments in the payments industry across the last two decades.
Increased regulation resulting from events such as 9/11 and the 2008 global financial crisis have seen a shift in banks’ focus to meeting not only business objectives, but also governmental objectives. Regulations, together with increased client demands and technological advancements, have spurred banks to enhance their offerings to provide greater transparency and convenience – in keeping with the digital expectations of a modernising world.
More recently, the adoption of real-time payment systems, along with electronic banking applications and cryptocurrencies have particularly shaken the foundations of the traditional banking space, and have thrown the gates wide open to non-bank market entrants. With open banking legislation coming into effect at the beginning of 2018, the payments landscape is only set to become increasingly fast-paced and competitive, as banks strive to remain relevant and continue to meet the evolving needs of their clients.
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Technology is creating a plethora of opportunities to enhance payments. And with client expectations for new capabilities growing – spurred by the abundance of high-tech gadgets in the wider market – banks must ensure they adapt and cater to expanding digital demands.
In a commentary article for EMEA Finance, Anthony Brady, Head of Global Product Management, Treasury Services, BNY Mellon, discusses some of the changes taking place, and how it is through industry collaboration that banks can truly leverage the benefits of technology, and deliver new, value-added capabilities to clients.
The full article can be read here (subscription is required).
On January 13th, 2018, the new European Directive on Payment Services in the Internal Market (PSD2) comes into effect, marking the next stage of the European payments market’s transformation. Christian Schaefer, global head of payments, Cash Management, Deutsche Bank, explains the implementation hurdles and opportunities in an article for FTSE Global Markets magazine – and sets out why financial institutions should strive to be PSD2-ready, sooner rather than later.
Admittedly, while there are significant time and resource investments required to become PSD2-ready, the benefits for both PSUs and PSPs should become evident from day one, says Schaefer. Even so, becoming PSD2-ready should not be seen as merely as an exercise in regulatory compliance. It brings many advantages that can grant banks and fintechs new revenue streams and opportunities to enhance their client offerings.
Institutions making the TPP interface operational in time for the effective date can also be among the first to implement Open Application Programming Interface (API) capabilities – allowing them to offer new, innovative products tailored to the evolving needs of their existing (and prospective) clients.
Read the full article here.