A New Approach For Modernizing Payments In Banking, is a research-based PYMNTS report in collaboration with Red Hat and Temenos. It examines the digital trends transforming retail commerce and details how banks can leverage these shifts to bring new services and capabilities to market.
Banks must be equipped to facilitate transactions quickly and securely in a digital environment and not just in branch offices. However, many banks have internal computing systems that are grossly out of date. These circumstances require banks to look to new models for digital services and features.
The advantages conferred by shifting, for example, to microservices-based payments architectures will only grow in the years ahead. It is possible that the only banks left standing in the not-too-distant future will be those with banking architectures capable of supporting the digital financial services consumers demand.
The report highlights four key areas:
- Automation: Automating the payment flows in any bank is dependent on ensuring the data elements for routing and successful processing within the transaction are correct.
- Transparency: Provide clear information on what’s happening with client’s requested payment transactions in a transparent and interactive way.
- Analytics: Provide AI-driven analytics that enables them to see patterns in client data and use it to the customer’s advantage in understandable language.
- Standardization: This requires the exchange of data to pass on orders and execute the clearing of the payment based on the standardization of data sets.