The changing face of the wholesale payments industry (Strategy Focus)

The changing face of the wholesale payments industry (Strategy Focus)

Introduction

The wholesale payments marketplace has been and is still witnessing significant change and a key strategy that Datamonitor believes banks should be adopting is that these firms should be taking an enterprise-wide approach.

Scope

*Cost-cutting remains a key driver for payments re-engineering efforts.

*Wholesale payments risk management remains a key priority for banks.

*Enterprise payment strategies have had limited uptake thus far.

*Increasing number of banks will acquire 'payments tzars' in near future.

Highlights

As banks come to grips with the shifting payments landscape, they must take an enterprise-wide approach to payments driven revenue in order to be able to lower their cost base, protect wallet share, increase customer loyalty, provide and develop profitable products and operate in a way that supports and furthers risk management practices.

Reasons to Purchase

*Vendors can tailor their offerings by assessing and analyzing which wholesale payment strategies are currently either in place or taking shape.

*Solution providers can better align their go-to-market strategies with banks' payments strategies.

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Introduction to the payment processing value chain 2
Cost-cutting remains a key driver for payments re-engineering efforts 3
Wholesale payments risk management remains a key priority for banks 4
Enterprise payments strategies have had limited uptake thus far 4
Customer-centricity is critical for a successful enterprise payments strategy 5
Increasing number of banks will acquire 'payment tzars' in near future 5
Enterprise payments strategists can help banks attain horizontal views across products 5
Uptake of shared service centres is driving the centralization of payments processing 6
The centralization of payments policy and processing will have major implications for stakeholders 7
ACTIONS 8
Banks need a long-term enterprise integration strategy in payments processing 8
Vendors should explore wholesale payments systems risk management solutions 10
METHODOLOGY 12
Further reading 12
Ask the analyst 12
List of Figures
Figure 1: The payments processing value chain 3
Figure 2: Payments strategy should be at enterprise level 9
Figure 3: Centralization around an integrated hub is a key strategy 10