Banking
Published by Gbaf News
Posted on May 3, 2018
Editorial & Advertiser disclosure
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
As open banking continues its rapid ascent, nearly 90 percent (87) of banks globally plan to move forward with open APIs, according to new benchmark data, “2018 Global Payments Insight Survey: Retail Banking,” from ACI Worldwide (NASDAQ: ACIW) and Ovum. The benchmark, comprised of responses from executives across financial institutions, merchants and billing organizations such as consumer finance and insurance, also showed that the emphasis on real-time payments has doubled from 31 percent to 62 percent within a 12-month span.
The explosion of activity in real-time payments and open banking has made payments transformation a key strategic initiative for many institutions globally. Although driven primarily by regulatory mandates in Europe, open banking has taken off in North America due to market competition. For banks, the message is clear; customers prefer real-time payments, whether it’s through a mobile app, or through traditional banking services.
Other findings from the study include:
- Banks reporting a clear strategy for developing APIs increased by 47 percent within one year
o European banks led at 92 percent, followed by 86 percent in Asia, and 82 percent in the Americas
- Over 70 percent (73) of banks were willing to open up their APIs to third party developers
o At 79 percent, European banks had the most proactive mindset, followed by Asia at 74 percent, and the Americas at 66 percent; interestingly, 70 percent of banks in the U.S. plan to encourage the use of their APIs
Real-Time Payments
- Banks that now expect real-time payments to drive revenue growth increased by 60 percent in one year
- The number of banks currently investing in real-time payments solutions doubled in a year, with 28 percent planning to make future investments
- Real-time payments drive a new wave of real-time payment hub investment for 43 percent of respondents
Online payment capabilities
- Holding steady at 68 percent globally are banks that currently or recently invested in this area, with many enhancing support for third-party wallet offerings and tokenization
Payment Cards
- Real-time is becoming a reality with nearly 80 percent (78) of banks and almost 70 percent (68) of merchants globally stating that the combination of immediate payments and open banking will drive a decline in the importance of payment cards
Security/Compliance
- As banks prepare for the new payments ecosystem, they’re looking to balance security and compliance alongside innovation
- Security is a chief area of concern around open banking, increasing in Europe by 29 percent, and Asia by 16 percent between 2017 and 2018. However, banks in the Americas with security concerns declined by 25 percent
“The dramatic change in attitudes toward both open banking and real-time payments in just one year is telling,” said Craig Ramsey, head of real-time payments, ACI Worldwide. “The big takeaway here is that real-time payments and open banking are set to reshape the competitive landscape, and banks should stay open to the potential new revenue streams and deepened relationships that will be brought to both consumers and merchants.”
“The results of the study highlight important steps that all retail banks should consider to ensure that they are prepared for current challenges and future opportunities,” said Kieran Hines, head of industries, Ovum. “Real-time payments and open banking initiatives have the potential to bring fundamental change to the retail banking value chain and must be viewed as true opportunities for service enhancement and transformation.”
As open banking continues its rapid ascent, nearly 90 percent (87) of banks globally plan to move forward with open APIs, according to new benchmark data, “2018 Global Payments Insight Survey: Retail Banking,” from ACI Worldwide (NASDAQ: ACIW) and Ovum. The benchmark, comprised of responses from executives across financial institutions, merchants and billing organizations such as consumer finance and insurance, also showed that the emphasis on real-time payments has doubled from 31 percent to 62 percent within a 12-month span.
The explosion of activity in real-time payments and open banking has made payments transformation a key strategic initiative for many institutions globally. Although driven primarily by regulatory mandates in Europe, open banking has taken off in North America due to market competition. For banks, the message is clear; customers prefer real-time payments, whether it’s through a mobile app, or through traditional banking services.
Other findings from the study include:
- Banks reporting a clear strategy for developing APIs increased by 47 percent within one year
o European banks led at 92 percent, followed by 86 percent in Asia, and 82 percent in the Americas
- Over 70 percent (73) of banks were willing to open up their APIs to third party developers
o At 79 percent, European banks had the most proactive mindset, followed by Asia at 74 percent, and the Americas at 66 percent; interestingly, 70 percent of banks in the U.S. plan to encourage the use of their APIs
Real-Time Payments
- Banks that now expect real-time payments to drive revenue growth increased by 60 percent in one year
- The number of banks currently investing in real-time payments solutions doubled in a year, with 28 percent planning to make future investments
- Real-time payments drive a new wave of real-time payment hub investment for 43 percent of respondents
Online payment capabilities
- Holding steady at 68 percent globally are banks that currently or recently invested in this area, with many enhancing support for third-party wallet offerings and tokenization
Payment Cards
- Real-time is becoming a reality with nearly 80 percent (78) of banks and almost 70 percent (68) of merchants globally stating that the combination of immediate payments and open banking will drive a decline in the importance of payment cards
Security/Compliance
- As banks prepare for the new payments ecosystem, they’re looking to balance security and compliance alongside innovation
- Security is a chief area of concern around open banking, increasing in Europe by 29 percent, and Asia by 16 percent between 2017 and 2018. However, banks in the Americas with security concerns declined by 25 percent
“The dramatic change in attitudes toward both open banking and real-time payments in just one year is telling,” said Craig Ramsey, head of real-time payments, ACI Worldwide. “The big takeaway here is that real-time payments and open banking are set to reshape the competitive landscape, and banks should stay open to the potential new revenue streams and deepened relationships that will be brought to both consumers and merchants.”
“The results of the study highlight important steps that all retail banks should consider to ensure that they are prepared for current challenges and future opportunities,” said Kieran Hines, head of industries, Ovum. “Real-time payments and open banking initiatives have the potential to bring fundamental change to the retail banking value chain and must be viewed as true opportunities for service enhancement and transformation.”