3. Tech innovation – the future of payments
Technology moves faster than regulation and FinTechs face a host of open questions. How will Open Banking connect banks and FinTechs to create innovative solutions? What role will blockchain play in reshaping global networks? How will digital currencies change the game?
Banks, meanwhile, must also pay due diligence to maintaining and strengthening the infrastructure they have, such as investing in the SWIFT network as it continues to upgrade to ISO 20022, an open global standard for financial business transactions.
Working together has already driven seismic changes to the landscape of global payments, and in turn changed consumer behaviour and expectations from financial services providers.
FinTechs continue to deploy technologies such as AI and machine learning to enhance fraud detection, personalize financial advice, and automate processes for faster, more accurate transactions. Banks and FinTechs have also made headway in exploring blockchain and cryptocurrency applications, offering customers new opportunities for investment and cross-border transactions.
The COVID-19 pandemic accelerated the adoption of contactless payments, with both banks and FinTechs investing in near-field communication (NFC) technology. We expect to see this trend continue to move at pace towards effortless ‘invisible’ payments to drive loyalty and growth in the future. We’re also seeing greater innovation making its way into the B2B space, notably in digital payments, following the growth of B2B e-commerce and e-invoicing.
Together, banks and FinTechs are driving the top trends in payments, ushering in an era of faster, more secure, and more inclusive financial transactions. It is important for both sides of the sector to learn from each other’s strengths as the ecosystem develops over the coming decade. This symbiotic evolution in the payments system promises a brighter future for global payments, with innovation and progress underpinned by strong governance and controls.
