Defining and Building the Next Generation Payment Hub
Larger financial institutions are looking to meet the challenges of modernizing their payments infrastructure to adapt to the modern payments ecosystem. In this white paper, EDC in partnership with ACI Worldwide explores how the modern Payments Hub can remedy these challenges. This in-depth paper explores the most common payments-related challenges experienced by financial institutions today, along with those of tomorrow, and discusses how orchestrated payment hubs can alleviate these pressures.
“Financial institutions are keener than ever to connect to the new opportunities provided by the widening catalogue of fintechs,” commented Mark Beresford (Director, EDC London). “By having Open APIs, the connectivity between historic financial institutions and new players dramatically improves. And, in a world where both quantity and quality of alternative payment methods is rising exponentially, it is no surprise to see that banks are trying to simplify their approach to these offerings.
”Further findings of the report:
To meet the challenges of modernizing their payments infrastructure – be it connecting to new vendors, consolidating different payment types, or processing large volumes of payments quickly and efficiently – an increasing number of banks are looking to invest in a modern payment hub. This offering combats each challenge in a cohesive and centralized way that is easy to manage for a financial institution.
“Overall, the outlook for the payment hub is very promising. With rising revenue dependencies on payments, the need for a solid payment infrastructure has never been greater,” commented Dean Wallace, Head of Consumer Payments Modernization, ACI Worldwide. “Once seen as expensive and an ‘easier said than done’ enhancement, new technological efficiencies and the pressure on financial institutions to compete in a radically new environment have changed that view. Payment hubs are now viewed as a vital solution to relieve the pressure from many of today’s challenges and to prepare banks to successfully compete in the future.”
The content of this article does not reflect the official opinion of Edgar, Dunn & Company. The information and views expressed in this publication belong solely to the author(s).
Edgar, Dunn & Company’s 2023 Fintech and Advanced Payments Report