Payments Transformation The Time to Act is Now Oracle Open World 2018

Transcription

1 Payments Transformation The Time to Act is Now Oracle Open World 2018 Ramanathan (Ram) Arunachalam Product Development Head Oracle Financial Services

2 Multi-Dimensional Forces Leading to Deep Structural Changes Across the Global Payments Industry Competition Fintech Globalization Margin Pressures Customer Ease and convenience - Digital Payments Growth of Electronic Payments Industry Technology Regulation Payments Convergence/ Payment Hubs Immediate Payments ISO Correspondent banking modernization(swift GPI) Blockchain Distributed Ledgers Mobile Payments Stored Value Wallets Payment Cloud Open API with PSD2 and Open Banking Working Group 2

3 As Countries Build New Infrastructures, Banks are Still Struggling with Legacy Conundrum Current state issues Multiple Payment-type (product) specific processing flows Multiple systems payment processors, messaging gateways, access channels, integration systems (applications-spaghetti) Low levels of integration and straight-through processing (STP) capabilities No ability to obtain a single customer view and structure relationship-based pricing and charges Inability to prevent fraud and comply with regulations Resultant pain points Distributed Processing Duplication of functions leading to inefficiencies New changes need to be implemented across multiple systems Inflexible systems unable to support development High costs and long lead team 4

4 Is Payments Transformation the Answer? Over 70% of banks globally are embarking on Payments Transformation Top reasons driving banks to transform: Technological disruption Competition Regulatory pressure Business outcomes expected with payments transformation and innovation Simplify payments value chain 55% Improve customer experience 60% Achieve interoperability with other payments systems 63% Source: Forrester Commissioned Study on Payments,

5 The Advent of Fintechs is Paving the Way for an Open Banking Ecosystem Growth in Financial Services APIs Fintech Adoption is Gaining Momentum 50% 18% 24% 17% 10% 8% 10% 6% Bank- Fintech collaboration is key Payments Savings and Investments Financial Planning Lending All sectors of financial services believed at least one-fifth of their business was at risk by 2020 Source: Accenture Research, EY Fintech Adoption Index,

6 Banks need to Act Now, by leading with a Payments Strategy, or Perish That Future Proofs Business and Builds Competitive Advantage Collaboration with fintechs Digital on-boarding and servicing Real time payments Standards-based ISO framework SWIFT GPI Fast Track Innovation with APIs Reinvigorate customer experience Improve working capital management Ensure interoperability Enable complete transaction visibility 8

7 Spend Shift from Silo Payment Solutions to Payment Hubs is on the Rise Projected Bank Adoption of Payments Hub, 2017 to e2020 Payment Hubs with Real Time Payment Capabilities are Key Focus Area Benefits of a Payments Hub Implementation European based financial institutions represents the largest concentration of hub adopters driven by regulatory factors Source: Aite, Payment Hubs Note,

8 What-You-Stand-To-Lose by not Consolidating Your Payment Infrastructure Bank might miss on: Reduction in cost per transaction by reducing manual work Standardization of interfaces & streamlining payment processes Quick time to market and rapid development of products Compliance with regulations Strengthening fraud and security measures Faster reconciliation Improved customer experience Simple and quicker way for collection and payment Reduce complexities by removing siloed payment applications 10

9 Banks can Operate with Highest Level of Intelligence with a Unified Payment and Messaging Aggregate data from multiple internal systems and route intelligently to most efficient payment network Visibility into liquidity position throughout the day Not having to build new service additions in multiple payment systems. Ability to self govern through centralized processing of payment information PAYMENT INTELLIGENCE Flexibility with single interface for all types of payments Seamless control over financial data for analytics 11

10 Leverage the API Framework and Get Real Time Top Drivers for Open API Adoption Top Areas Where FIs Are Incorporating Open APIs Real Time Service Experience Banking As A Platform Regulatory Push like PSD2 Growth In Transaction Volumes Improve Customer Experience Investing, Trading & Brokerage Payments, Loyalty, e-commerce and Wallets 12

11 Oracle s Solution can Assist Banks in this Journey of Transformation 14

12 Towards Intelligent & Intuitive Banking pre-integrated with Oracle Banking suite Oracle Banking Payments Built for the Future Designed for Co-Innovation with APIs, Distributed Ledger Technology Adapters and Open Banking Agile & Progressive - Built on the latest technology stack and flexible architecture

13 The Solution is Tailored to Meet Multi-Dimensional Requirements of Banks Harmonization Built on ISO standards framework Configurable to integrate with industrystandard business applications Enhanced Security and Visibility Complete support for tracking and maintaining SWIFT GPI transactions High fidelity dashboards to track a variety of payment types Workflows with dedicated payment queues for handling exceptions & investigations Improved Operational Control Intelligent queues to manage transactions at various stages Seamless straight through processing achieved through configurable rules engines that automatically assign relevant payment processor Flexibility in Deployment Designed to serve either in a Standalone payments platform mode with existing core banking systems or in a Co-deployed mode with FLEXCUBE Pre-integrated with Oracle FLEXCUBE as well as the Oracle Corporate Banking Solution Stack 16

14 Comprehensive Payments Processing Framework : Modular Yet Unified Single Platform to Process All Payment Types Separated Messaging and Processing Layer to Simplify Change Management Flexible Architecture that Lets Banks Use as they Go Connectivity User Input C2B File Upload Input Layer Channels Messaging Uniform & mixed bulk payloads, single payloads Net bank App integration Cross-Border Direct Debits Dashboards Domestic Low-Value Direct Credits/ Deposits Message-IN: ISO / SWIFT MT Dedicated Processing Flows Operations Queues Processing Layer Domestic High-Value Clearing & Instruments Pricing Shared sub-systems Integration APIs / Services Real-time (Faster/ Instant) Book Transfers Beneficiary Register Bank s application environment: Channels, DDA, Accounting/GL, Static Data, Sanctions, FX, Messaging Output Layer Connectivity 17

15 The Oracle difference Multi-time zone, Multi-currency, Multi country, solution addressing all payment types Value for Customers Centralized payment processor with ability to handle Retail, Wholesale, Corporate and Enterprise Payment requirements Real Time Payments Capability - Support real time payment settlements and ensure 24*7*365 availability Launch Innovative Payment Products & Services & Enhance Customer Experience Reduced complexity & cost to connect to banks Oracle Banking Payments Improved STP s eliminates manual process & Reduce operational costs significantly & Enhanced Predictability Digital Payments - Enhanced Customer Experience & Visibility, End-2-End Transparency Value for Banks Unification Of Messaging Standards Reduce complexity and gain flexibility, scalability and responsiveness to Market Demands 18

16 Leader in Payments Solutions UNMATCHED PRODUCT PORTFOLIO 140 Countries 600+ Customers APAC 180 Domestic corporate banks Cross-border transaction banking EMEA 349 LAD 48 NA 45 Payments Digital payments

17 Next Steps For your payments transformation Schedule discovery meeting to identify priorities and opportunities us at or visit our website: 28

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