NEW YORK, September 26, 2016 — BNY Mellon, a global leader in investment management and investment services, has issued a white paper that summarizes the transformational changes taking place in the payments space and analyzes survey results from more than 100 banks to describe the strategies being employed by banks to align themselves with the emerging payments environment.
Available on the BNY Mellon Web site, the new paper, entitled "Reinventing Payments in an Era of Modernization," is coauthored by Tony Brady and Chris Mager, two experienced BNY Mellon bankers deeply involved in the company's participation in the transformational changes taking place in global payments. Brady is head of global product management for BNY Mellon Treasury Services, and Mager is head of global innovation within BNY Mellon Treasury Services’ global product management group. The paper also features perspectives on payment modernization from Steve Ledford, senior vice president, product & strategy for The Clearing House; Wim Raymaekers, head of bank marketing for SWIFT; and an array of product experts and technologists from BNY Mellon who are playing important roles in the company's development and deployment of new payment-related products and services.
Reviewing the factors that are driving the changes taking place in the payments space, the authors point out that ecommerce has radically changed consumer expectations regarding the levels of ease, efficiency and transparency that should surround transaction experiences. They also detail the challenges that the banking industry needs to overcome – notably network effect, the creation of standards conducive to integration and ongoing innovation, and regulatory compliance – in the development and deployment of payment innovations. The industry's strategic response to these challenges is discussed under three broad headings: enhancements being undertaken by banks separately; initiatives being undertaken by banks collectively as part of industry groups; and the management of relationships with fintechs that range from competition to collaboration.
Bank clients have a great deal at stake in terms of understanding the strategy their bank is employing, and some of the study's most interesting findings report on survey responses from banks that detail the level of engagement in payment innovation across the industry, attitudes of bank executives toward the principal client benefits of payment advances, and expectations on the part of survey participants in terms of the long terms prospects for fintechs in the payment space.
"The issuance of our white paper during the runup to this year's Sibos event is no accident," said Ian Stewart, executive vice president and chief executive officer of BNY Mellon's Treasury Services business. "Payments are an absolutely core treasury services offering, and it's incumbent on us as an industry to seize the moment and step up to client expectations in terms of their payment experience. We're actively engaged not just in the collaborative projects being undertaken by banks to improve the delivery of payment services, but also in the industry's larger discussion around how to best meet the needs of our clients. Our white paper will be an extremely useful resource in both regards."
With locations on six continents and an extensive global network of correspondent financial institutions, BNY Mellon's Treasury Services business delivers high-quality performance in global payments, trade services and cash management. It helps clients optimise cash flow, manage liquidity and make payments more efficiently around the world in more than 100 countries. Processing payment transactions in more than 120 currencies, the company is a top-five participant in both the CHIPS and overall funds transfer markets. The company is also a recognized leader in the delivery of private-label treasury services solutions for banks and other large institutional clients.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2016, BNY Mellon had $29.5 trillion in assets under custody and/or administration, and $1.7 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.