A recent survey found global financial services industry executives are increasingly required to do more instant decision making. Three out of four respondents said they process immediate payments of one kind or another, and this number will grow as projects underway in countries such as Australia are implemented and planning progresses within Europe’s SEPA framework and the U.S. Federal Reserve.
The findings by Finextra Research and Axway also found the majority of respondents (58%) are expected to make immediate operational decisions daily, while only 51% have actually made commitments to how quickly they would react to customer queries.
Cards payments processing is ubiquitous for banks with a retail presence, and the 86% response for this instrument gives an indication of how many of our respondents operate in the retail space vs just serving corporate banking customers.
Cheque usage is declining rapidly worldwide in the face of more secure, convenient card and electronic payment methods. But only in a few countries, mainly in northern Europe where giro systems essentially replaced them, have they been completely phased out. As such, cheque processing, usually in conjunction with industry owned processing utilities, is still required by most banks.
Until the beginning of this millennium, Japan and Switzerland were the only major countries to support low value domestic payments that could be posted to recipients’ accounts in under a minute. All other immediate payments were limited to high-value transactions conducted over national real-time gross settlement (RTGS) systems. Since 2000 a number of countries have moved
to embrace immediate low value domestic payments, including Brazil, South Korea, United Kingdom, China, India, Sweden, Denmark and Singapore.
• Large Payment Transaction Volumes: More than half (56 percent) of respondents are dealing with payment transaction volumes of at least one million per day, and the same percentage has an aggregated monthly value of transactions equivalent to $1 billion or greater.
• Prioritization of Improved Customer Service: More than half (55 percent) of respondents believe that their major business priority is to improve customer service – making this more important than increasing profit or performance improvement.
• Necessity for Immediate Operational Decisions: The majority of respondents (58 percent) are expected to make immediate operational decisions daily, while only 51 percent have actually made commitments to how quickly they would react to customer queries.
• Desire to Reduce Operational Risk: 85 percent of respondents cited reducing operational risk as the major strategic objective and 71 percent cited improving the customer experience as top objectives of operational intelligence maturity.
• Growing Security Concerns: 39 percent of respondents said they experienced up to nine significant breaches in the past year.
For data, background and forecasts on Global Payments: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).