Takeaways from the event highlight the importance of keeping the customer at the forefront of decision-making, while navigating an evolving and fast-moving industry
Finastra, a global provider of financial software applications, held its annual US Payments Business Forum, welcoming leaders from financial institutions across the United States to discuss industry trends, market dynamics, and product innovation. The event was hosted April 2-4 in Fort Lauderdale, Florida.
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Offering presentations featuring Finastra product experts, industry analysts, roundtable discussions, and panels, the forum emphasized the importance of putting customer needs at the forefront of the payments modernization journey. With ongoing market changes, increased customer demand for speed, and an evolving regulatory landscape, the event emphasized collaboration and two-way communication to help ensure banks have the knowledge, technology, and skills needed to compete in the fast-moving payments industry.
“Events like this demonstrate how crucial it is for all of us in the industry to come together, learn from one another, and brainstorm ways to better serve our customers,” said Eric Martinez, AVP Wire Transfer Manager at Amarillo National Bank.
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Key takeaways from the three-day conference include:
- Mid-tier banks must modernize their payment infrastructure and migrate to hosted or SaaS solutions to keep ahead of customer needs: Presenters discussed how a significant majority of banks (92%) plan to increase their investment in payment technologies, with 80% identifying legacy systems as a key obstacle. Partnerships and cloud solutions can drive innovation in payment systems, enabling banks to enhance the customer experience and increase operational efficiency. End users are less tolerant of subpar functionality and are willing to seek out best-in-class solutions. Essentially, financial institutions can expect to follow the “If you build it, they will come” concept, ensuring that they are offering the solutions their account holders expect and need.
- Stop playing defense, play offense: According to Datos Insights, 89% of businesses are investing in payments tech, which creates mutual alignment between banks and customers. The opportunity exists for banks to capture this business spending before it flows to direct to customer fintech solutions. 39% of corporate treasurers at large and mid-size companies would switch financial institutions for better payment automation tools, while only 18% of businesses feel their primary bank’s reporting capabilities meet all their needs. These expectations are directly tied to the need for banks to go to market with more robust payment capabilities or risk losing clients to other banks or fintechs.
- ISO20022 standardization must be a priority: The deadline to implement ISO20022 messaging standards is delayed until July, but financial institutions must use this time to prepare. Presenters noted that 90% of US financial institutions are ready, while almost half have completed third party testing. Over the next three months, this gap must be bridged.
- An ecosystem of partners makes the industry stronger: To accelerate innovation and identify areas to improve the customer experience, it is important that financial institutions embrace the payments ecosystem of partners to better serve their needs. Fintech partners can provide additional services that augment existing ones, creating more opportunities to attract and retain customers.
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“For many years, the US Payments Business Forum has been invaluable to financial institutions, offering vital insights into modernizing payment infrastructures and embracing an innovative tech stack. By adopting trends such as cloud migration and payment automation, banks and credit unions can enhance operational efficiency, meet evolving customer expectations, and stay competitive in a rapidly changing financial landscape,” said Barry Rodrigues, EVP Payments at Finastra. “This conference underscores the importance of continuous investment in payment technologies to drive innovation and secure a robust future for financial institutions. We thank our customers and partners for coming together for another productive discussion.”
The event was sponsored by Finastra partners Microsoft, Fincom, Orion Innovation, Federal Reserve Financial Services, Visa, SRA Consulting, The Clearing House, and Aspire Systems.
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Source – prnewswire
