The payments industry is transforming at breakneck speed, from the emergence of new payment types to the increasing utilization of innovative technologies. These changes are causing a rise in complexity when managing payment operations. This compounding complexity is now reaching a fevered pitch, so much so that industry analyst firms are calling for immediate action and are looking at new pathways to address increasing market demands.
In Datos Insight’s recent report, Payment Hubs: Why Banks Must Move Forward With Urgency, analysts encourage banks to take an “urgent” step – a different approach to how they manage their payment systems and operations.
Existing systems hinder banks’ abilities to effectively manage the new payment market complexities going forward. Banks struggle to control increasing expenses and effectively risk jeopardizing their ability to stay relevant, be competitive, and keep up with evolving market needs. So now is the time for bold decisions. Banks need modern and transformative solutions and tool sets that can support all payment types across all businesses and set the stage for future growth and operational excellence.
Beyond supporting the market complexities, there are a myriad of other reasons for banks to consider transforming their payment operations to a payment hub that supports all payment types and works across lines of business. Those reasons include:
- Addressing one problem at a time or adding an incremental system feature to an existing system can no longer make significant improvements for top-line revenue growth or bottom-line operational efficiencies.
- Breaking down business silo walls can eliminate process duplicity and provide a holistic view of customers with multiple relationships.
- Bank customers will not continue tolerating poor, outdated, expensive services or bad user experiences.
Analysts are encouraging the payments industry to think big, beyond traditional barriers, and consider a new breed of payment hub: a modern, cloud-native payment hub that facilitates all payment types (card and real-time) on one unified platform that spans across retail and commercial business segments with a single customer view. Analysts are calling for a payment hub that layers in AI and machine learning tools to drive better decisions, outcomes, and orchestration. These solutions must also be scalable, resilient, and work across the globe. Analysts believe this new type of payment hub is the primary means to stay ahead of the rapidly changing market with all the inherent complexities.
Deploying and migrating to a new payment hub solution with all the right properties will not be a small task, but it will be a visionary leap that secures industry players’ futures. Adopting and transforming current payment systems to a best-of-breed new solution will require foresight and steadfast fortitude. Early adopters have an opportunity to reshape their organizations and be in position to capture more market share. Banks electing to wait risk falling behind and will continue to be plagued by the increasing market complexities and challenges. More importantly, failing to act will result in diminished customer appeal and becoming irrelevant over time. Banks need to act now, with urgency, to dispense with all the market complexities and secure a better path forward for their organizations and their customers.
Payments hub 
