A Finextra survey in partnership with Volante Technologies shows that 89% of all new payment system implementations move to the cloud or with payment as a service provider
The second annual survey explores how the cloud, data-rich ecosystems, and real-time digitization are transforming the payments industry
LONDON, October 20, 2022 /PRNewswire/ — Volanté Technologiesthe global leader in cloud payments and financial messaging, today unveiled key findings from a Finextra survey, “Modernization of payments: the big survey 2022”developed in association with Volante Technologies.
This year’s survey, the second in an annual series, explores two different aspects of payments modernization: the business context and drivers of modernization, and the technology investments institutions plan to make to enable modernization. . Key drivers include customer demands and the desire to increase the contribution of the payment business to the bottom line, as well as the pressure to keep up with competitors, regulators and the ever-changing global payment infrastructures.
For many institutions, investments made in pre-pandemic projects have begun to show a return on investment, and now nearly 65% are continuing their modernization journey by replacing one or more existing payment systems within a year.
The cloud is the dominant deployment base for payment systems today – with 89% of all new payment system implementations on the cloud or with a payments-as-a-service (PaaS) provider, compared to 73% in 2021. This shift towards cloud or PaaS models has gained momentum in recent years, with nearly 70% saying this is where their existing payment systems are primarily deployed.
Other survey highlights include:
- 11% use PaaS providers for most of their payment systems, up from 9% in the 2021 survey
- Reducing the cost and complexity of maintenance is the number one requirement for 47% of respondents, and was ranked among the top three goals by 73% of them.
- Access to real-time or intraday liquidity management is the number one customer request they need to address, with 56% of respondents ranking it as the first or second priority
- 25% described their capabilities as the minimum standard required or worse for ISO 20022 compliance, putting them at risk of missing compliance deadlines
John FarrellSVP and Global Head of Product Management, Volante Technologies, said: “The renewed interest in payments modernization correlates with an increasingly rapid evolution of the payments industry as a whole. As in the natural world, the secret to surviving evolutionary pressures is a adapt quickly. By evolving payment technology inherited from the past, institutions that take the right approach will be uniquely positioned to win the race to “survive the fittest” and grow their business. Those that don’t will be relegated to irrelevance or extinction.”
Anna MilneSenior Research Writer, Finextra, said, “The cloud, data-rich ecosystems and real-time digitization are transforming the payments industry. This survey demonstrates that there is a clear understanding of the benefits of consolidating payment types, including operational and customer experience improvements. Progress towards this goal highlights trends towards outsourcing standardized processes such as payment processing to a knowledgeable and trusted partner, through the move to PaaS, enabling the financial institution to improve its overall operational efficiency and its customer propositions. »
The global survey conducted in early 2022 was based on a sample of 315 banks and payment service providers, with 55% of respondents from Europe20 percent of North America, and 25% from the rest of the world. 48% of attendees were from global banks, with the remainder split between regional and local banks and fintech/payment service providers. 40% of respondents work in corporate transaction banking, with the rest in consumer and small business payments.
Download a free copy of the survey, “Payments modernization: the big 2022 survey”.
About Volante Technologies
Volante Technologies is the world’s leading provider of cloud-based payment and financial messaging solutions to accelerate digital transformation. We serve as a trusted partner to more than 100 banks, financial institutions, market infrastructures, clearing houses and corporate treasuries in 35 countries. Our solutions and services process millions of transactions and trillions of value every day, powering four of the top five corporate banks, 40% of all US commercial bank deposits, and 70% of global card traffic. As a result, our customers can stay ahead of emerging trends, become more competitive, deliver superior customer experiences, and grow their businesses through rapid innovation. To learn more, visit www.volantetech.com. Follow us on linkedin.com/company/volante-technologies and twitter.com/volantetech.
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SOURCEVolante Technologies, Inc.