As the world is grappling with economic disruptions spurred by the COVID-19 pandemic, questing for a new horizon offering exciting opportunities and new dimensions to the financial services has become the need of the hour. Though banks, corporates, and capital markets are aware of digital transformation vastly, many are adopting the turtle speed.
This is not happening because of possessing less technical knowledge. But actually, the phobia of accepting change (metathesiophobia), existing legacy system compatibility, nevertheless the accessibility of great solutions are the main factors. To counter the transformation in the payment industries, proactive services, total agility, and right timing with transparent results are paramount.
While the spotlight has been mostly on financial services, several developments have taken place to reshape the payment processes and change the entire landscape in the last few years.
Key characteristics of the future of payments Revolving Around Financial Services
The pandemic has already reinforced those digital payments will replace cash or cheques, making it beneficial for the customers and corporates to experience cash flow more seamlessly than ever in all industries.
Back of Mind:
Since virtual and automated payments are gaining momentum, more payment processes become invisible to end customers, moulding their preferences towards finances. With Open Banking and the growing APIs ecosystem, banks have additional payment channels and additional needs to be supported for the underlying payment services.
Earlier linkages had to be created between the payment processing engine and the back-office systems and transaction monitoring, authorization, and various clearing systems. Payment and mobility have generated a direct proportionate relation with each other that fascinates banks, corporates, and customers to mitigate any operational losses.
As consumers demand convenience, security, and speed from their online transactions, alerts the payment handlers to spot issues causing failed payment and rectify them. Therefore, leading to the unmatchable need to have proper access to data accumulated from the payment transactions and allows service providers and financial services to imbibe a great understanding of businesses and customers. Our IMS modules and services communicate internally to eliminate unwarranted data travel between services, data redundancy, fragile data mapping services.
Innovative solutions are paving the way for the corporates and banks to experience low variable costs associated with predominantly electronic payment transactions. It has developed the requirement to access a consolidated platform that can reduce the number of systems and applications. Moreover, the simplicity of payment processing eliminates operational inefficiencies, reduces costs, and saves the bank’s staff time.
Adapting to Real-Time Services:
Author of Wisdom on the Way to Wall Street exemplifies the requirements of transparency and authenticity as the most vital trait of a strong leader. Similarly, the market infrastructure is demanding for fast transition into real-time basis. The capability to integrate data irrespective of the available sources on a real-time basis to the preferred format and protocol is one of the most emerging trends.
Conclusion of the impact that technology has had on financial services
Undoubtedly, technology has predominately moulded the way businesses and financial services were initiating. The modern needs of financial institutes, corporates, and consumers are evolving and changing constantly. Transparency, authenticity, real-time response, and reduced cots have become admirable traits for a financial service provider. Moreover, safety, convenience, security, patience, and communication are the crucial catalysts that expedite embracing next-generation payment facilitators. Today’s service providers are on a huge learning curve; there is a need to accept the change and embrace it eloquently.