Once-in-a-Generation Chance for Banks in Payments

Written by Conrad Sheehan, Managing Director, Accenture

Payments modernization is the most consequential transformation that banks will make this decade. With the shadow of an aging payments infrastructure looming large, banks can’t stay on the sidelines. This is an existential issue. Banks that don’t act put their future at risk.

Banks are constrained by aging payments infrastructure and operations. Industry-wide innovation in the form of real-time payments from The Clearing House, the Federal Reserve, and non-bank competitors is very disruptive. And of course, banks must address regulatory requirements like the migration to ISO 2022, a new global standard for payments messaging.

Banks can explore solving as many pain points as possible using commercially available software. Sometimes this means making tough choices and setting priorities. What’s also key is running the implementation well—from requisition through implementation, testing, and change management. Banks must do all of this in a predictable and managed way while still running the bank and not ballooning their employee base.

This article reposted with permission.  Connect with Conrad Sheehan on LinkedIn to stay up-to-date on the latest trends in payments.