ECS Fin – IBSI’s whitepaper explores the significance of payment services hub in digital transformation
By Megha Bhattacharya
The global payments landscape has a well-established dynamism driven by accelerating development of electronic payments, enhancements in the interoperability of systems as well as seamless domestic and international transactions. To stay abreast with this burgeoning industry and strengthen their market position, banks have significantly increased their investments in payment technology systems. Payment services hubs, amongst other PayTech solutions, have captured the interest of banks aiming to optimize the flow of payments through their channels via a single platform.
IBS Intelligence has collaborated with ECS Fin on a whitepaper that highlights the rising significance of these payment services hub as well as challenges faced in designing and modernizing a payment service hub. The whitepaper also suggests the best practices to be considered by banks before commencing a payment modernization journey.
The whitepaper explores the key trends accountable for driving the need for a modern payment services hub. It also charts down the technological innovations as well as respective use cases in areas of blockchain, analytics, artificial intelligence, and open APIs, that have revolutionized the industry.
The report deep dives into the challenges faced by banks during the payment modernization process. Banks using legacy systems instead of a dedicated payment service struggle to keep up with modern payment processes. Apart from this, banking institutions face challenges with interoperability, fragmented processing, complex regulatory compliance as well as constrained cost and time margins.
Prior to a payment modernization implementation, banks undertake critical considerations including the time to market, cost of implementation, vendor’s expertise, etc. At the same time, they expect a future-ready architecture capable of supporting Open Banking APIs, real-time payments based in ISO 20022, and transaction volumes 24*7 through the year.
The whitepaper also lists down the essential steps prior to an implementation and highlights the importance of an end-to-end modernization of a bank’s payment infrastructure. For more insights, read the whitepaper here.