IBS Journal May 2016
21
to change cross-border payments or if it is not.”
Leibbrandt concluded with a joke that he said derived from the original Industrial Revolution – as some people have been calling FinTech a form of great revolution akin to the one which sparked in the 1750s. “There are three ways for a businessman to go broke. If you gamble you might go broke but it’ll take some time, with women you might go broke but have more fun but with engineers you’re certain to go broke no matter what.”
The discussion then turned to real-time payments. Becky Clements, Head of Industry Engagement and Payment Change at Metro Bank, commented: “Having real-time payments and faster payments enables challenger banks (like us) to make some headway into a market dominated by larger players.” It would be better if smaller banks also didn’t have to jump through so many hoops just to get on the instant payments scheme.
Whether it’s challenger, retail or wholesale banks, “taking on the technical heart of these systems is difficult and it isn’t cheap,” said Harry Newman, Head of Banking at Swift. “In some areas Faster Payments (which was first proposed in the UK in 2004) is making great headway, but in others it’s not being used as much. For P2P payments, though, it’s
seen very strong volume growth.”
“It’s worth the cost and the pain,” replied Clements. “We want to give our customers the service that they need and the choice of which to use. It’s worth investing in that infrastructure to make sure they get what they want and to increase industry competition.”
Thomas Schickler, Managing Director and Global Head of Product Management for Global Payments at HSBC, drilled down by saying that “we’re in the transport business, moving money from A to B.”
Where banks look to innovate is highly important. “We can’t remain as transporters as the value is quickly changing to pre and post payment systems. Until we focus on that element we’ll struggle to create a truly valuable proposition.”
At the close of the sessions a poll was again conducted, asking attendees how much they were considering investment in newer solutions. Before only around 40- 50% of those attending had said they would actively look into the possibilities. After the talks that number had grown to 70%, with a further 15% planning to look into it in more detail. It seems that the beginnings of change are beginning to take root.
www.ibsintelligence.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
