The Payments Transformation Race: Criteria for Success, commissioned by Icon Solutions and produced by Aite, takes a deep dive into the current state of payments transformation at top global banks.
The report provides a view into how banks define payments transformation, the priority this initiative has within the institutions, and key data points such as status of real-time payments, profitability of payments, risks of inaction, and funding of initiatives.
Key takeaways from the study include the following:
- While every institution defines payments transformation differently, every definition includes a reference to the importance of speed.
- Real-time payments are the primary driver of payments transformation efforts at most financial institutions.
- Payments are struggling to maintain profitability hurdles as the total cost of operation (TCO) continues to rise and margins continue to thin. Streamlining and updating back-end systems to create a foundation for future payments infrastructure is a key component to long-term success.
- The true success of a payments transformation effort is not immediately measurable as the long-term viability of the infrastructure will not be known for a decade or more in the future.
- Completing a high-level self-assessment can help financial institutions of all sizes identify their strengths and opportunities and benchmark themselves against best-in-class industry leaders.