The expansion of real-time schemes globally is driving a marked change in attitudes among financial institutions, with 85% of banks globally now viewing real-time payments as the foundation for growth and new product enhancements, according to the “2018 Global Payments Insight Survey: Retail Banking,” from ACI Worldwide and Ovum.
The report reveals that 92% of European banks (and 88% globally) are delivering enhanced retail customer propositions because of real-time infrastructure. The majority of banks also expect improved customer service, new services for SMEs and long-term cost savings.
Alongside real-time payments, open banking is a top issue on the agenda of financial institutions. European banks are at the forefront when it comes to implementing an open banking strategy, with 92% saying they have defined one, followed by 86% in Asia, and 82% in the Americas.
“The dramatic change in attitudes toward both open banking and real-time payments in just one year is telling,” says Craig Ramsey, head of real-time payments at 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.”
- Over 70% of banks are willing to open up their APIs to third party developers. With 79%, European banks had the most proactive mindset, followed by Asia at 74%, and the Americas at 66%.
- 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%, and Asia by 16% between 2017 and 2018. However, banks in the Americas with security concerns declined by 25%.
Online payment capabilities
- Holding steady at 68% globally are banks that currently or recently invested in this area, with many enhancing support for third-party wallet offerings and tokenization
- Real-time is becoming a reality with nearly 80% (78) of banks and almost 70% (68) of merchants globally stating that the combination of immediate payments and open banking will drive a decline in the importance of payment cards.
To download the report click HERE