Nordea report: Corporates want banks to deliver payment standardisation and provide new fintech solutions

Published 

A new Nordea report focusing on the future of the corporate and business-to-business payments landscape, including the changing role of banks and the impact of new technology, has shown that a lack of industry standardisation is a key concern among businesses. Meanwhile, more than half (57%) of respondents said they did not expect to work with fintechs directly, preferring to access new solutions via existing banks and vendors.

The report is based on the results of a recent survey conducted by Nordea with 60 customers spread across all major industry segments. Additional expert insights were gathered from a variety of customers, industry participants and Nordea executives.

Over the last few years, the payments industry has become one of the most dynamic areas of financial services. The Future of Payments report contends that four major factors have been driving this fast period of change: customers and their changing needs and behaviours; technology; regulation, such as SEPA, PSD2 and data protection requirements; and, the impact of new players on the banking and finance industry.

The report focuses on treasurers and finance managers, helping them to understand that the opportunities to pay and receive cash more quickly, securely and predictably is key to building robust, flexible supply chains, leveraging new business models, and boosting competitive advantage.

Assessed in the report are some of the most important payment innovations over recent years, and emerging solutions that have the potential to challenge and transform both domestic and cross-border payments in the future, such as Blockchain and real-time payments.

The report also analyses the challenges of the corporate sector as they enter an increasingly digitised and inter-connected payment ecosystem. It showed how 60% of respondents indicated that lack of standardisation of formats across banks was among their top three challenges, while 42% emphasised diversity of payment methods across markets as a key concern. Regulatory compliance and cross-border payments created significant challenges for 33% and 32% of participants respectively.

The majority of treasurers and finance managers expect their future bank relationships to be as important as they are today (56%), with just as many people anticipating that these relationships will become more, rather than less important (14% and 15% respectively). Elsewhere, the report showed how operating as an in-house bank is an important trend amongst corporations, but most notably on a payments-on-behalf-of (POBO) basis (37%) to rationalise accounts and bank relationships, and replace cross-border with domestic payment types.

 

Most recent episodes

What’s on the Horizon for Short-term Investments?

The treasury community has risen to the ongoing challenge of rising interest rates and inflation, with corporate cash serving as the sought-after safety net. Here, Daniel Farrell (Northern Trust Asset Management) and Karl Adams (ICD) consider how the latest MMF reform proposals affect short-term...

Transitioning a Corporate from LIBOR to CME Term SOFR

The loans market has predominantly moved to forward looking term rates, and both corporate borrowers and global lenders are increasingly turning to CME Term SOFR as the forward looking risk-free benchmarks to support their activities. Listen to this podcast, featuring Gavin Lee, Marco Bianchi (CME...

37:16

HSBC’s Sibos Spotlight – View from Sibos

TMI's Eleanor Hill invites Neil Atkinson, Nadine Lagarmitte, and Vinay Mendonca (HSBC) to discuss the critical treasury topics and conversations highlighted at this year's Sibos conference in Amsterdam. Amongst a wealth of market insights, our guests consider the most critical developments emerging from...

38:40

ECB’s Targeted TLTRO Tweaks Set to Drain Excess Market Liquidity

Welcome to the latest edition of Liquidity Link Live, your exclusive market analysis provided by Northern Trust Asset Management, one of the world’s largest cash managers. Tune in each month to discover the very latest insights on the UK, Eurozone and US markets. This edition was recorded on the 7th...

05:42

Asian Treasury Trends: Learnings and Opportunities

Former corporate treasury professional, Valerie Heng (Deloitte) joins Eleanor Hill to discuss the hot topic of treasury transformation, alongside other key shifts treasurers should be aware of. In this podcast, Valerie uses her knowledge of the Asian Treasury market to explain how the role of the...

20:27

Collaborative Trade Finance: How to Unlock Liquidity at Speed

Imagine if trade finance applications were fully collaborative and corporates could communicate with every trade participant via an open digital hub.  In this podcast, Vincent Almering (Interfood Holding B.V.) and Enno-Burghard Weitzel (Surecomp) explain to TMI's Ben Poole how collaborative trade...

35:54

Critical Trends in Trade and Supply Chain Management

Three trade finance experts from Societe Generale join Ben Poole (TMI) in the virtual TreasuryCast studio to discuss critical developments in the trade space that are particularly impactful to corporate treasurers. In this podcast, Isabel Santos, Ariel Emirian and Pierre-Antoine Barreault (Societe...

21:32

Citizen Development: The New Productivity Engine for Corporate Treasurers

‘Citizen development’ is about encouraging non-IT professionals to learn software development skills. Here, Dor Haim (Kryon) questions whether, with the roll-out of low-code platforms, treasure...

07:09

Managing the Impact of Rising Interest Rates and Inflation

With interest rates rising as central banks try to contain inflation, a difficult balancing act is in progress. The responses of the various monetary policy committees are being watched with a keen eye by treasurers the world over as they consider their next actions. Tarek El-Yafi and Karen Hom (Standard...

08:21

Community Impact: Cash and Fixed Income Investing for Good

CNote is a tech-enabled impact investment platform – and a means for finance to be used as a “tool for economic justice”. Its focus on diversity, equity, and inclusion helps corporate and institutional investors use their capital to strengthen underserved communities.  Catherine Berman (CNote)...

13:37