Join the Community

21,757
Expert opinions
43,847
Total members
441
New members (last 30 days)
187
New opinions (last 30 days)
28,612
Total comments

Object reference not set to an instance of an object.

1 comment

The benefits associated with the implementation of a payments factory have been achievable for some time now, with new, additional benefits and indeed challenges, being realized as payments processing becomes yet more complex.

SEPA, the simplification of bank transfers and increased adoption of a common data standard are challenges that can on the whole, be viewed as having largely been addressed.  So this is now a good opportunity to view the progress made as a stepping stone for corporate treasurers across the globe to further harmonize their payments processing procedures. 

Payment factories are one such way to do this.  But payments factories are by no means a one-size-fits-all solution.  The challenge lies in how a particular factory works for a particular institution, and ensuring a strategy exists that underpins data transformation, management and process.

There’s a very good reason why we us the term ‘factory’ – and not, for instance, 'process'.  A factory approach offers an automated solution and it’s the benefit of automation that brings about the greatest efficiencies in payments processing.  Touching paper (payments) once, let alone twice is becoming less of a viable option.

Streamlining, harmonizing and efficient payment flow routing undoubtedly reduces risk, improves accuracy and eases payments flows, but any solution must be enterprise-wide – it must be applicable domestically, regionally and departmentally.  Not only must this federated methodology be explored, but the application of a robust integration layer is also essential for running across any payment processing stack.

Despite the benefits on offer, organizations are however still struggling to deploy such a factory solution and have in the past had their fingers burnt by  sub-standard deployments.  This is for one very good reason.  If a sound and robust data integration strategy is absent, even the best factory will not achieve its goals.  It’s akin to a factory that has no power.

Implementation must be underpinned by common understandings, common standards and common data transformation capabilities in order to achieve the benefits on offer and create the standardized output proffered by factories and desired by corporates.

There is a strong argument for today’s technology to support the needs of financial institutions issuing global payments; the technology is available – and the drivers for meeting increased regulatory compliance requirements are there – but it takes a multi-pronged approach.  It takes forward thinking, planning, and partnering with experts and firms that can deliver what they promise. 

 

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

Join the Community

21,757
Expert opinions
43,847
Total members
441
New members (last 30 days)
187
New opinions (last 30 days)
28,612
Total comments

Trending

Nkiru Uwaje

Nkiru Uwaje Chief Operating Officer at MANSA

Stablecoins: The Future of Payments

Sireesh Patnaik

Sireesh Patnaik Chief Product and Technology Officer (CPTO) at Pennant Technologies

Empowering the Lending Industry: How Low-Code, No-Code, Pro-Code Platforms are Driving Innovation

Now Hiring