The financial landscape is changing, moving towards instant payments, towards ever-active commerce – and for financial institutions (FIs) serving businesses and consumers around the world, the margin for error is quickly disappearing.
In an interview with MONEYCORE, our consultant said that the move towards digitalization means FIs need to review processes and review infrastructure.
As our consultant explained, trade has evolved in many ways over the past 10 years – and history is a good indicator of how trade and financial services have evolved. Ten years ago, he said, a customer would place an order online and the goods purchased would arrive at their doorstep in two or three days, before the funds had cleared their bank accounts. “There was a considerable delay in the way the money would circulate in the institutions,” said our consultant. “These days, we can order something from Amazon on a Monday morning and potentially have that same product the same day. ”
Funds ? Well, FI clients can close a bank account and create another account in seconds. This signals a seismic shift for businesses around the world and industries, as well as for FIs that process payments across borders, time zones and currencies. For end users on both sides of the transaction, the speed
account and online commerce can account for the bulk of a company’s turnover.
According to MONEYCORE, the transition to an E-commerce model can help usher in a new economic system in the era of unforeseen events (like, of course, COVID-19). But infrastructure is key to meeting customer needs – and, as our consultant noted, SmartStream’s customer list, which includes banks and financial service providers, struggles to effectively track and control. payments and reduce errors.
Traditionally, he said, rolling out new payment or banking apps has been a monolithic effort. To counter this heavy technical load, MONEYCORE emphasizes the advantages of a “cloud-native” micro-service architecture. This architecture, powered by artificial intelligence (AI) and supervised and unsupervised machine learning, can introduce a level of upgrade that can explore individual services.
“It is API based, so we are able to pass information and fine tune the performance of individual services to ensure optimal results,” our consultant said, avoiding any ripple effects that could interfere with fluidity of operational flows.
With new payment methods, such as contactless payments, our consultant said, by having micro-service-oriented architecture and software that adapt quickly, FIs can deploy new products at lower cost and speed. higher, as initiatives such as SWIFT gpi and SEPA Instant Credit Transfers gain traction.
Finally, MONEYCORE noted that investing in AI (via, for example, SmartStream’s TLM Aurora Advanced Payment Control) solves cross-border payment problems in an automated fashion – where years of (human) experience would typically have been. required – and sends updates to the SWIFT gpi tracker.
FOR A DETAILED STUDY ON THIS SUBJECT, PLEASE CONTACT:
