Sibos was once again a hectic, frenetic week of meetings and eye-opening conversations. Fundtech was fortunate to announce BofA as its first customer for its new SOA payments platform. The explanation by Cindy Murray – EVP of Innovation at BofA of how they
plan to use this new technology was worth repeating.
As Cindy explained it: When you send a FedEx package for $25, you know exactly where it is throughout its journey, and when it arrives at its destination. You’re able to set up email alerts – you’re even able to see the recipient’s signature on your computer
screen. So why is it, she asks, that when you send a $50 million payment you can’t get the same level of service?
Good question! And this is exactly what BofA plans to do – change the game in payments using new SOA payments hub technology. Here’s the big idea: Just like FedEx pulls back-office data forward to add value to the end-user experience, so too will BofA. Payment
hubs are able to take important data related to method of payment, pricing and delivery and bring it into the end-user experience. So just like FedEx, bank customers will be able to know the status of their payment and all sorts of other details.
What’s really going on? The key trend in the payments business is to add value to the transaction by using the associated data. The battle for lowest cost through automation is no long the primary objective. The top dog in payments is enriched user experience
through access to back-office data. Payments are not commoditized – they are the new competitive edge!