The second annual survey explores how cloud, data-rich ecosystems and real-time digitisation are transforming the payments business
LONDON, Oct. 20, 2022 /PRNewswire/ -- Volante Technologies, the global leader in cloud payments and financial messaging, today revealed key findings from a Finextra survey, 'Payments Modernisation: The Big Survey 2022', developed in association with Volante Technologies.
This year's survey, the second in an annual series, explores two different aspects of payments modernisation: the business context and drivers of modernisation, as well as the technological investments institutions are planning to make to enable this modernisation. Key drivers include customer demands and a desire to grow the payments business' contribution to the bottom line, and pressure to keep up with competitors, regulators and evolving global payment infrastructures.
For many institutions, investments made in projects pre-pandemic have begun to show return on investment, and now nearly 65 percent are continuing their modernisation journey by replacing one or more existing payments systems within one year.
Cloud is the dominant deployment foundation for payment systems today – with 89 percent of all new payments system implementations going on cloud or with a Payments as a Service (PaaS) provider, up from 73 percent in 2021. This evolution to cloud or PaaS models has been gaining momentum in recent years with nearly 70 percent saying it is where their existing payments systems are mostly deployed.
Other survey highlights include:
- 11 percent are using PaaS providers for most of their payment systems, up from 9 percent in the 2021 survey
- Reducing maintenance cost and complexity is the number one requirement for 47 percent of respondents, and was ranked in the top three objectives by 73 percent of them
- Access to real-time or intraday liquidity management is the number one customer demand they must meet, with 56 percent of respondents ranking this the number one or two priority
- 25 percent described their capabilities as minimum standard required or worse for ISO 20022 compliance - leaving them at risk of not meeting compliance deadlines
John Farrell, SVP and Global Head of Product Management, Volante Technologies, said, "The uptick in interest in payments modernisation correlates with an increasingly rapid evolution of the payments industry overall. As in the natural world, the secret to surviving evolutionary pressures is rapid adaptation. By evolving past legacy payments technology, institutions that take the right approach will be ideally positioned to win the 'survival of the fittest' race and grow their business. Those that do not, will be relegated to irrelevance or extinction."
Anna Milne, Senior Research Editor, Finextra, said, "Cloud, data-rich ecosystems and real-time digitisation are transforming the payments business. This survey demonstrates there is a clear understanding of the benefits of consolidation of payment types, including operational and customer experience improvements. Progress to this goal highlights the trend towards outsourcing standardised processes such as payment processing to a capable and trusted partner, through the evolution to PaaS, allowing the financial institution to improve its overall operational efficiency and customer propositions."
The global survey conducted in early 2022 was based on a sample of 315 banks and payment service providers, with 55 percent of respondents from Europe, 20 percent from North America, and 25 percent from the rest of the world. 48 percent of participants were from global banks, with the remainder split across regional and local banks, and fintech/payments service providers. 40 percent of respondents work in the corporate transaction banking space, with the remainder in consumer and small business payments.
Download a complimentary copy of the survey, 'Payments Modernisation: The Big Survey 2022.'
About Volante Technologies
Volante Technologies is the leading global provider of cloud payments and financial messaging solutions to accelerate digital transformation. We serve as a trusted partner to over 100 banks, financial institutions, market infrastructures, clearing houses, and corporate treasuries in 35 countries. Our solutions and services process millions of transactions and trillions in value every day, powering four of the top five corporate banks, 40 percent of all U.S. commercial bank deposits, and 70 percent of worldwide card traffic. As a result, our customers can stay ahead of emerging trends, become more competitive, deliver superior client experiences, and grow their businesses through rapid innovation. To learn more, visit www.volantetech.com. Follow us at linkedin.com/company/volante-technologies and twitter.com/volantetech.
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