20 January 2018
visit www.ebaday.com

Positive outlook for instant payments drives IT spend at EU banks

01 August 2017  |  8021 views  |  1 Digital Arrow chart

Sixty-two percent of European financial institutions expect to increase spending on payments technology throughout 2017, driven by the revenue-generating opportunities of instant payments and the need for increased operational efficiency.

A survey of over 500 banks worldwide conducted by Ovum found European banks at the forefront of the payments modernisation process as they strive to update their legacy infrastructure for a new era of real-time payments and the imminent introduction of the EU's revised Payments Service Directive.

The results found that attitudes towards the benefits of instant payments are increasingly positive among the banking fraternity, with improved customer propositions, increased revenue opportunities and potential for cost reduction all viewed as constructive outcomes.

With PSD2 top-of-mind, the arrival of open APIs is splitting industry opinion. While 59% have a clear strategy for creating open APIs and interfaces for developers, 45% also report that they are taking a ‘wait and see’ approach. Concerns about security and liability remain a challenge for 42% of institutions surveyed, with no clear guidance over the reputational and customer impact of fraudulent use of customer data arising from a third party breach.

“The market is rapidly changing — banks must invest wisely in core payments platforms and infrastructure to take advantage of relevant opportunities,” says Kieran Hines, head of industries, Ovum. “Financial institutions that proactively shape strategies around open APIs, fraud prevention and immediate payments will reap the benefits when it comes to both customer experience and revenue.”

Comments: (1)

Robin Setty
Robin Setty - ACI Worldwide (EMEA) Limited - Watford | 02 August, 2017, 09:45

Ah...The "Wait and See" approach, as so successfully adopted by Kodak and Nokia.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UniCredit among 30 banks to begin testing instant payments

UniCredit among 30 banks to begin testing instant payments

25 July 2017  |  13642 views  |  0 comments | 3 tweets | 10 linkedin
EPC gears up for pan-European instant payments

EPC gears up for pan-European instant payments

14 July 2017  |  11857 views  |  0 comments | 10 tweets | 29 linkedin
EBA rejects Commission amendments on screen scraping under PSD2

EBA rejects Commission amendments on screen scraping under PSD2

30 June 2017  |  24364 views  |  16 comments | 46 tweets | 63 linkedin
ECB preps eurozone-wide instant payments service

ECB preps eurozone-wide instant payments service

22 June 2017  |  11955 views  |  0 comments | 20 tweets | 38 linkedin
Instant payments top of mind for Swift and EBA Clearing

Instant payments top of mind for Swift and EBA Clearing

14 June 2017  |  10967 views  |  0 comments | 13 tweets | 21 linkedin
Berlin Group to publish single API standard for PSD2

Berlin Group to publish single API standard for PSD2

13 June 2017  |  17461 views  |  0 comments | 29 tweets | 62 linkedin
Countdown to PSD2: Finextra surveys financial institutions on readiness and strategies

Countdown to PSD2: Finextra surveys financial institutions on readiness and strategies

05 June 2017  |  13991 views  |  0 comments | 10 tweets | 5 linkedin
Nordea readies for PSD2 with Open Banking API site

Nordea readies for PSD2 with Open Banking API site

01 March 2017  |  21020 views  |  2 comments | 33 tweets | 55 linkedin
ECB consults on development of pan-EU settlement service for instant payments

ECB consults on development of pan-EU settlement service for instant payments

10 January 2017  |  9928 views  |  1 comments | 18 tweets | 40 linkedin
Hungary presses the button on instant payments

Hungary presses the button on instant payments

21 December 2016  |  12814 views  |  0 comments | 16 tweets | 16 linkedin
PSD2 a golden opportunity for banks – new Finextra paper

PSD2 a golden opportunity for banks – new Finextra paper

29 September 2016  |  17509 views  |  0 comments | 31 tweets | 30 linkedin
Banks unsure on response to PSD2 upheaval

Banks unsure on response to PSD2 upheaval

12 August 2016  |  10437 views  |  0 comments | 19 tweets | 28 linkedin
Immediate payments 'next frontier' for European integration - ECB

Immediate payments 'next frontier' for European integration - ECB

09 December 2014  |  19947 views  |  2 comments | 23 tweets | 37 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.vasco.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
12237 views comments | 33 tweets | 38 linkedin
BofA leads on blockchain patentsBofA leads on blockchain patents
7547 views comments | 11 tweets | 12 linkedin
Standard Chartered establishes fintech innovation and investment unitStandard Chartered establishes fintech inn...
7419 views comments | 14 tweets | 14 linkedin
hands typing furiouslyFintech Adoption is About People, Not Tech
6650 views 1 | 6 tweets | 2 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job