The European Central Bank defines interoperability as 'the set of arrangements/procedures that allows participants in different systems to conduct and settle payments or securities transactions across systems while continuing to operate only in their own respective systems.'
While technological efficiency is critical to gaining ground on global interoperability, there are other elements that are crucial to the success of a global payments network. This includes the ability to build seamless connections, connect payment systems across different jurisdictions with varying regulatory requirements and ensure different demographic groups can transact reliably and securely.
The payments and transaction banking industry may be unsure of where the fintech evolution will go next, but what is evident is that models for public and private sector collaboration must be established.
What this means is that financial services must reach a resolution for the continued challenges around cross border payments, correspondent banking and liquidity management, if we are indeed on the cusp of the instant payments era.
The European legislative landscape must also be looked upon as a support, not a hindrance and more must be done to implement the clever use of data so industry participants can forge ahead with initiatives such as open finance, banking as a service and turning payments processing into a business opportunity.
Further to this, as technologies such as cloud, artificial intelligence (AI) and robotic process automation (RPA) are utilised for innovation, banks and other financial institutions must step up their fraud prevention and cybersecurity games and establish new ways of customer authentication.
Now is the time for commercial banks to lead and the emergence of central bank digital currencies (CBDCs) has proved that strategic potential is there for this sector to thrive and pave the way for the next generation of payments.
With expert views from Banking Circle, Quant, and Wise, in this report, you will learn from industry leaders about the events and trends defining global payments in 2023 and beyond. The report includes insights from BNY Mellon, Cecabank, Deutsche Bank, HSBC, ING, Nationwide Building Society, NatWest, SEBA Bank, and Société Générale.