CPG: 2017 Payment Strategy Survey Report

199IT original compilation

CPG has released its 2017 Payment Strategies Survey. New technologies, changing consumer expectations and new competitors have made consumer and commercial payments the most dynamic sector in the financial services industry. Banks still dominate this space despite the threats. Now, these threats are becoming more visible and more real. The changes taking place in the payments space mean that banks must make payments a strategic priority if they want to stay ahead.

Banks’ readiness for the current transformation in the payments landscape varies. Overall, the industry has taken some significant steps to address these challenges, and relevant sectors have taken steps to adapt to the new environment. However, many institutions still face a lack of readiness. Banks’ ability to adapt to the rapidly evolving online payments environment has a number of weaknesses, including the lack of a formal strategic plan, overly complex ways of managing payments, and a failure to adopt new technologies or form partnerships with non-bank competitors that offer the new payment services that consumers expect. The banking industry must address these challenges if it is to maintain its core position in the online payments world.

CPG also offers some suggestions for the banking industry to continue to maintain its position in the online payments space:

1. Develop a strategic payment plan. A good payment strategy can provide guidance and a framework for evaluating emerging products and services, improve targeting, and reduce poor quality decisions and low-value services.
2. Establish an enterprise-level governance structure. To properly oversee and execute the transformation, a more holistic approach to managing payments strategy and implementation is needed.
3. Evaluate open banking platforms. If banks cannot provide the services that customers want, they will lose customers. Banks should encourage their core service providers to innovate their own products and integrate other solutions into core systems.
4. Partner with FinTechs. By partnering with FinTechs, banks can reduce risk and maintain their underlying systems to profit from new payment solutions.
5. Invest in analytics to support payment services. Banks must build analytical capabilities that can access and manipulate payment data to provide useful information to customers.

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