New technological developments are unfolding at a rapid pace. In order to truly benefit clients, this transformation will best come about through collaboration between providers.
‘Fintech’ has become a buzzword in payments, and while the word is mostly associated with an internet-savvy, millennial generation creating a wave of cutting-edge entrepreneurial start-ups, its broader definition encompasses developing technology that is revolutionising transaction banking. This is especially true for payments and, even more recently, regulatory and anti-money laundering (AML) oversight and compliance.
Undoubtedly, technology is enabling significant advances in the world of transactions. For example, over 30 countries across the globe have introduced – or put concrete plans in place to introduce – real-time domestic payment schemes in recent years. In the US, for instance, the Real-Time Payments (RTP) scheme is set to launch in the coming months. This represents a major leap forward with respect to enhancing efficiency and speed, and introducing cost reductions. BNY Mellon will be one of the first participants planning to offer real-time payments in the US.
With such significant innovative advances seen in domestic payments, it was only a matter of time before the industry began turning its focus to applying similar capabilities to global payments. Cross-border transactions are soaring, making real-time solutions – irrespective of location (complete with transparency of payment status and real-time fraud analysis) – a key priority.