Banks Strategic Response To Structural Changes
In collaboration with other industry participants, banks should take the lead in developing a new payments’ ecosystem as a strategic response to structural changes taking place in the industry. In the past, payments were considered a non-core, commodity service and payments processing (especially for cards) were usually outsourced to third parties. At present, payments are a strategic focus and differentiator because of investment in advanced technologies. In transitioning to a future payments state, some banks have started leveraging information from data lakes and other sources. In the future, payments will become part of a larger banking ecosystem in which participants, including the PSPs, interact with key partners to offer services to their customers.
Banks are at different maturity levels within the new payments’ ecosystem. While many leading banks across the globe have taken ecosystem initiatives, others are in the planning stages, while some others lag behind.