Banks cautiously optimistic about impact of tech 18 October 2017Toronto Reporter: Theo Andrew
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Banks are “cautiously optimistic” that emerging technologies will have a significant impact on banking models, according to a BNY Mellon survey.
According to the research, Rethinking the Client Payment Experience, security and reliability are viewed as instrumental in creating the ideal payment experience.
The research, released at the Sibos conference in Toronto, also revealed that just over 25 percent of respondents think that blockchain technology will “substantially change the global payments experience”.
Despite this, 60 percent of respondents said it was too early to tell if application programme interfaces will have an impact on internal correspondence.
As for impediments surrounding the use of technology, 25 percent of respondents said that compliance screening is the largest impediment to straight-through processing success, while 20 percent believe payment formatting error is the second greatest impediment.
The white paper also found that banks need to merge their internal legacy infrastructure with components of third party providers.
Mike Bellacosa, head of global payments product management, BNY Mellon Treasury Services, said: “Increased regulation and competition is helping to drive innovation and change in the bank payment space that we have not seen for decades. But with the coming of age of millennials and their higher levels of both technology understanding and technology expectations, we are now hearing a real rallying cry for change.”
Wim Raymaekers, head of banking markets and SWIFT global payments innovation (gpi) at SWIFT, said: “BNY Mellon is one of the key banks on SWIFT gpi and has been driving its thought leadership from the beginning. The fact that such a leading financial institution is live with gpi—providing their clients with faster, more transparent and traceable cross-border payments - is a real testimony of that.”
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