We’ve launched a new whitepaper on preparing your payments infrastructure for the next decade. Complete the form below to download the whitepaper, and find out what’s changing in the European payments landscape, How failure to adapt became the biggest infrastructure risk facing payments businesses, and how you can design a payments infrastructure that allows you to reduce risks and quickly bring new products and services to market.
Retail payments are a route to profitability for banks, but it’s also a route to market share and new customers. FinTechs have one main advantage in the market - flexibility. They have been able to move quickly to develop new features and roll them out before traditional banks could. Now however, we see traditional banks rolling out those same features - FinTechs will lose some of their competitive advantage if they can’t maintain the same level of innovation as before. The challenge for traditional banks is that it’s taken them a long time to get here - they couldn’t respond to the challenge as soon as it happened. At the end of the day, this is a conversation about tech infrastructure. Challenger banks, working on modern tech stacks, could quickly develop and deploy.
The way for traditional institutions to take this on is to introduce similar degrees of agility in order to give options to customers who don’t like the pared-back experience of digital banks but feel traditional banks don’t understand their needs either.
The issue is inertia born of fear.
When a bank’s technology fails, the first repercussion is that it makes headline news. The second is that the regulator gets involved. Combined, the bank could face fines, fees and a badly damaged reputation. The desire to avoid this scenario at all costs stifles a lot of technology advancement in the financial space.
Unfortunately in the long term, this policy is likely to create more problems than it solves.
If we look even further into the future, disruptions from the likes of Blockchain and AI could bring further, more dramatic change to the industry. While they are still very much in the early stages of development and roll out, a CTO must be able to anticipate the change that these, or other unknown technologies, might bring - and be in a position to react and adapt. Technology leaders must be able to keep pace with the new products and services that technology will introduce. And do it efficiently.
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