Consumer expectations, behaviour and payment preferences are and will continue to evolve at an accelerated rate.
As a result, payments processors and issuing banks must ensure they are technology-enabled and software-driven so that the financial products and services they provide are future-proofed, ready for today and tomorrow.
This is an extract from ‘Embracing the New Paradigm of Cloud Migration to Future-Proof Payments Technologies,’ a Finextra Research impact study in association with Global Payments, part of the AWS Cloud Series.
Driving digital experiences
In an attempt to keep pace with competitors, banks must recognise that collaboration between payment players and cloud service providers will help drive frictionless, more secure digital experiences for consumers.
This is of paramount importance in a world where resilient commerce through contactless interactions – at scale – is key.
However, some institutions are still offering traditional premise-bound services and aren’t taking advantage of the innovative technologies available in market today. In order to remain relevant, these organisations must be flexible, accelerate speed to market and provide best-in-class experiences for their customers.
According to a McKinsey survey, banks that use technology to transform customer experience have increased customer satisfaction by 15 to 20%, reducing cost to serve by 20 to 40%, and boosting conversion rates and growth by 20%.
The advantages of keeping pace
From extending their footprint into new products, services and markets, to innovating and creating next generation, digital focused banking solutions, the goal for financial institutions is to meet the demands of the connected, digital world and keep pace with ever-changing consumers’ preferences.
Against a backdrop of new payments startups, legacy players don’t have the benefit of starting from scratch, but do have the advantage of a large customer base.
While cloud technology can support digital transformation, financial institutions, retailers and new market entrants will also realise the benefits of a collaboration between the likes of Global Payments and Amazon Web Services (AWS) and how it will lead to more secure, reliable and innovative solutions for the payments industry at scale.
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