Digital banking appears the new frontier for competition and leadership in the financial services space. While for some time this has been the norm in retail banking, only as of recent we see corporate transaction banks doing the same. BBVA has selected a partner to cover B2B payments through its vast network. According to my analysis, the real value the bank gets from this partnership is the network (as a matter of fact the article reads that the number of transactions have already tripled) and also- and most importantly- the possibility to manage new forms of payment processes, typical of a B2B environment: marketplaces, online merchants, subscription-based payments. Additional API programming environment enables BBVA to expand its footprint in the B2B payments ecosystem.
I am seeing with interest the opening of a new trend: Contextual Payments. According to my research, payment providers will support corporate clients (and banks) to analyse the kind of payment to be executed (e.g., to suppliers, taxes, salaries, high-value) and suggest the best payment rail (e.g., real-time, batch, ACH) depending on the business objective of the company/ bank (e.g., minimize cost, accelerate payment, reduce currency exchange fees, maximize liquidity).
30 Apr 2017 10:38 Read comment
International banks- especially in the Far East- are traditionally strong in trade finance and want to keep a competitive lead. Distributed Ledger Technology (DLT) presents indeed a way to create efficiencies and streamline processes. It is important, however, to understand how well prepared is the bank to move from document exchange (e.g., letters of credit- LCs) on the DLT to automating business processes like preparation of LCs and subsequent payment. This is something that corporate users will most likely demand after initial adoption.
LCs’ role is to reduce counterparty credit risk, especially between parties that have low level of reciprocal trust. However DLT is there exactly to ensure trust, so the question to ask is whether LCs will still be needed in a DLT environment.
30 Apr 2017 10:18 Read comment
At the risk of appearing arrogant, I told you... https://www.finextra.com/blogposting/9867/peer-to-peer-or-promise-to-pass--away-
20 Feb 2017 19:47 Read comment
I guess I was wrong when I made my prediction that APIs for transaction banking would be developed not before 2 years from now. Well, this is happening already TODAY!
Read my post on Finextra https://www.finextra.com/blogposting/13610/apis-for-transaction-banking
10 Feb 2017 11:45 Read comment
I think it’s the right time for Swift to step up and provide valuable guidance to its banking members, especially after the very recent news that important institutions (e.g., Goldman Sachs, Santander, Morgan Stanley) are exiting the R3 consortium.
These are my assumptions:
24 Nov 2016 10:59 Read comment
Blockchain-as-a-service is fast moving to become reality
05 Apr 2016 08:01 Read comment
I consider the blockchain space as an echosystem that will follow- as any other- the Darwinian rule that only the fittest will survive.
Now it is like a primordial broth with many species living in it and doing their best to keep the role of leaders. Then you have other ones living in niche areas under tougher conditions and with little space. Which of the two categories will survive?
We know what happened with dinosaurs and rats.
I guess we need a sort of "asteroid" to hit the surface and then see which of these "blockchain species" will die and which instead will be more agile and adapt to take the lead in a changed ecosystem.
For now, the more, the better. You need competing species to perfection each one's characteristics in a tough environment.
20 Jan 2016 16:53 Read comment
I have a basic (and potentially silly) question that- I must admit- derives from my limited knowledge of the details of the technology.
Are private blockchains interoperable? I.e., can I put a transaction on private blockchain #1 which has its own consensus protocol and have it seamlessly transferred to private blockchain #2 that has another distributed ledger protocol?
Thanks in advance to those who want to answer my question. if you prefer privately, please send to ecamerinelli@aitegroup.com
20 Jan 2016 13:49 Read comment
"Banks will need to have access to a growing universe of different ledgers to serve their own clients". Looking forward to reading Earthport creating a similar hub for bitcoin blockchain ledger.
12 Jan 2016 13:13 Read comment
Don't say I didn't warn you... https://www.finextra.com/blogs/fullblog.aspx?blogid=8663
18 Dec 2015 08:40 Read comment
Transaction Banking
Financial Supply Chain
Treasury Management
Thad PetersonSenior Analyst at Aite Group
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