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Friday, June 2, 2023

94% of banks have an eye on investing in modern payments technology

According to a study, the majority of banks globally are investing in modern payments technology, with 94% of respondents considering investing to some extent in the next 24-36 months.

Research by the Aite-Novarica Group shows that payments are an important area of ​​growth and innovation within commercial banking and that legacy systems cannot support end-user demands for better payment capabilities.

Almost half of the banks surveyed said that fintech, which typically provides a seamless customer experience, already accounted for at least 10% of their payments volume.

Of these respondents, 65% plan to make substantial or moderate investments in payments technology over the same period.

real time payment

The “Payments Modernization and Technology: Priorities, Challenges and Partnerships” survey found that real-time payments are one of the biggest drivers of payments modernization. Many financial institutions are in the process of deploying new payments rails, with some 72% of respondents having completed a project, are in progress, or plan to implement it.

This suggests that most banks welcome modernization as a key differentiator and an opportunity for innovation. Despite the shift to real-time payments, many banks still face implementation challenges, with 57 percent reporting that adapting legacy infrastructure makes modernization extremely or very challenging.

Many banks report that they lack the resources to integrate legacy systems and modern technologies, making modernization more complex and demanding. Some 70% of banks believe that the technical challenges of integrating with legacy systems are in some way or a major hurdle, highlighting the need for technology partners that provide agility and ease of implementation.


The study was conducted among 108 banks in North America, Europe and Asia Pacific. It reports on the payments strategies, priorities and challenges these banks encounter in the short and long term.

Additional insights include:

• Cross-border payments face major challenges: For all banks, the biggest challenges facing cross-border payments are compliance and security issues. 56% of banks say compliance and security are extremely or very challenging.

• Positive views on the cloud are now mainstream: Banks are recognizing the importance and benefits of moving payment processing to the cloud, with only 9% of respondents rejecting the move entirely.

• Payments-as-a-Service (PaaS) reduces time-to-market: It is well recognized that PaaS can help reduce time-to-market and provide businesses with greater payments capabilities. Seventy-three percent of respondents said that PaaS would allow them to roll out new services faster.

perfect storm

“As we have learned from the survey results, the payments industry is facing a perfect storm of challenges, but with them comes new opportunities for growth. Choosing the right partners to meet these challenges has never been easier Time is more important,” said Barry Rodrigues, executive vice president of payments at Finastra. “At Finastra, our mission is to be the kind of partner that helps our clients successfully unlock new opportunities.”

“As businesses demand more efficient and advanced payments capabilities, banks around the world are realizing that if they don’t invest in more robust technology, they will quickly find themselves falling behind their competitors,” said Erika Baumann said. Aite-Novarica Group. “Our research shows that creating better, more innovative suites of payment services with the right partners on the right infrastructure is a common theme globally that is critical to success in a real-time environment.” It matters.” — trade arab news agency

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