Venture capital investment, accelerator programs and a focus on the deployment of new technologies through allegiances with fintech companies should be priorities for banks as a multiplicity of new payment capabilities have developed.
According to a new report by global investments company BNY Mellon, “Innovation in Payments: The Future is Fintech”, highlights the growing influence of fintech in transaction banking. It assesses the direct and indirect impact of the new technology on payments and the way in which it is transforming how consumers and clients initiate and process transactions.
While regulation puts pressure on bank resources, financial institutions should prioritize technology-focused strategies. The financial services industry has one of the highest ratios of IT spend as a proportion of revenue with over three quarters of this estimated to be in maintenance rather than new services. Giving this, banks need to redress this imbalance and the document examines what strategies banks should adopt in order to understand and access the fintech wave, and find a new position in global payments.
Read the report in .pdf here