Leveraging APIs and ISO20022 in Payments
News

Break the Mold & Pave the Way for a Brighter Future

Mick Fennell
Blog,
Mick Fennell – Business Line Director, Payments

In the first of our series of videos and blogs on the challenges faced by the foreign branch networks of international banks, we highlighted the fact that many organizations ended up being treated like second class citizens as they missed out on the investments they needed to address the challenges.  Upon recognizing these difficult, expansive payment processing challenges, the next step is to consider the options for addressing these particular demands.

How do you pave the way to a successful future? A future where the burden of maintaining compliance with mandated regulatory change in multiple markets is greatly reduced, where the issues of scalability and flexibility are removed, and where your ability to address disparate markets and customer needs is a differentiator, not a barrier to success?

The answer lies in seeing this moment as a strategic inflection point that is presenting your institution with an historic opportunity to break the mold. Now is the time to start moving away from a range of technological, architectural, and organizational approaches that lengthen your time to market for new services and generate costs which significantly reduce your operating margins.

That journey away from existing limitations is based on a number of key themes:

  • Centralize, consolidate – reduce the number of systems across the organization. Take this opportunity to consolidate from different systems in multiple territories to a reduced number of concentrated processing hubs, or single instance if possible. 
  • Standardize disparate flows to maximize automation – standardize process flows to create repeatable, reusable components which support services that operations staff can interact with efficiently
  • Optimize operational processes through next generation payments capabilities – this includes the use of AI and advanced analytics to improve throughput and reduce risk, embedding business rules driven processes including dynamic routing, sanction screening,  and exception resolution.    
  • Cloud/SaaS – embrace the opportunity to drastically reduce infrastructure costs, whilst enabling elastic scalability, high performance, and resilience as a core competency.

It is this final move to a new mode of consumption that will enable organizations to advance confidently into the era of globally available on-demand payments.

Our next and final piece in this series will highlight how Temenos has developed the software solution and operational environment to meet these ever-advancing needs and thus enable the international branch networks of banks to break the mold and end the cycle of neglect.        

Filed under:

Blog,
Mick Fennell