Retail Banking Payment Operations (Technology Focus)

Retail Banking Payment Operations (Technology Focus)

Introduction

With regulatory changes driving investment in payments operations, banks must have a clear understanding of how their current systems are lacking, where investment is needed and how they can leverage such investments to address both regulatory and business challenges.

Scope

*Primarily covers the European payments market

*Areas covered include legacy system limitations, next steps, implementation challenges and fraud issues

Highlights

As the retail banking industry continues along the path of consolidation and becomes increasingly competitive, a flexible payments infrastructure that can be operated and maintained at the minimum cost will be fundamental to supporting a responsive, customer oriented business going forward.

Many banks still lack the capability for STP in regard to their payments operations. In order to make payments infrastructure rationalization a reality and have end-to-end payments processing, banks must strive to remove manual processes from their payments operations and seek to automate processes to the greatest extent possible.

As the retail payments industry opens up, banks must be prepared for the increased pressure this will put on the detection of fraudulent transactions. As a result, they must take a dual-pronged approach to tackling fraud prevention, addressing both fraud prevention at the point of access as well as catching transactions that slip through the net.

Reasons to Purchase

*Gain visibility into the dynamics of the European retail payments market

*Gain market insight to assist in your strategic planning and go-to-market strategy

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS 2
Legacy payments systems are holding banks back from being flexible and adaptable 2
Simplification/consolidation of payments operations will enable flexibility going forward 2
Banks must get back to basics when addressing payments infrastructure investments 4
The automation of payments processes will be key in improving efficiency and enabling STP 5
Payments operations improvements must be implemented with the maximum efficiency and minimum risk 5
A long term enterprise-wide payments strategy will prevent the duplication of investment across the business 6
Upgrading payments operations will facilitate sophisticated fraud detection techniques 6
Analytics will be key to fraud detection, and can be leveraged from AML investments 6
However, investments in transaction origination security should filter out the majority of fraudulent attempts 7
APPENDIX 9
Further reading 9
Ask the analyst 9
List of Figures
Figure 1: Payments infrastructure in banks 4
Figure 2: Factors of authentication 8