Moving Account-Based Payments from Cost Centre to Revenue Stream
The model used by most banks for processing account-to-account payments is under strain. Despite payment services being mission critical, a bank’s payment operations are largely viewed as a cost centre. Crucially, margins are being squeezed from all sides, making current approaches increasingly unsustainable. Engaging a third-party processor or taking a PaaS proposition from a vendor are two options that are gaining traction, and offer clear alternatives to managing this internally. However, this shift is also a commercial opportunity for those banks prepared to enter the market.
To better understand these challenges, Icon commissioned Celent to carry out research exploring the payment processing opportunities for banks, where they surveyed and interviewed senior executives at several tier 1 banks.
Key takeaways include: