Banks Face Major Pressure to Transform Legacy Payment Systems

As the title to this article states, banks are being forced to recognize some of the limitations of their existing payments infrastructure or be at risk of getting left behind. Since payments cross nearly all lines of business, silos will need to come down to make this possible:

A lot of attention is on payment systems that facilitate timely and secured transfer of payments. An increasing array of solutions aimed at different customer segments, expanding access channels, mobility, large volume, faster settlement and enhanced technical support have all added to the pressing needs of banks to look for ways to strengthen their payment systems.

In an effort to bridge legacy systems and create a more nimble platform on which to innovate, some are turning towards the creation of payments hubs. This is a large undertaking for any organization and is an effort with a long-term perspective:

Advances in technology, gateways, devices and channels have driven transformation in the payment system. This game-changing trend has particularly impacted banks in the last five years with a shift from traditional silos to a well-organized central hub solution being preferred by the banks. The shift has largely been driven by the desire of banks for integrated systems capable of tying together various business units and channels like Internet, ATM and mobility.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group.

Read the full story here.