Convergence of Real-Time Payments and Open Banking Helps Banks to Grow Revenue and Attract Customers
March 14 2019 - 2:00AM
Business Wire
New white paper by ACI Worldwide and Lipis
Advisors outlines new uses cases for banks, processors and merchant
acquirers
Banks, processors and merchant acquirers must adopt holistic
real-time and Open Banking strategies in order to monetize
real-time payments, according to Get More from Real-Time Payments,
a new white paper published by ACI Worldwide (NASDAQ: ACIW), a
leading global provider of real-time electronic
payment and banking solutions, and payments consultancy
Lipis Advisors.
The study sets out recommendations for banks, processors and
merchant acquirers and outlines services that allow all
participants in the payments ecosystem to create new revenues,
increase margins, and shorten the time to ROI.
“Our research shows that the possibilities for value realization
in the open and real-time banking ecosystem abound,” said Craig
Ramsey, head of real-time payments at ACI Worldwide. “New services
such as ‘Request to Pay’ are already proving popular in many parts
of the world. Once merchants and banks recognize the benefits
adoption will take off.
“Real-time payments and Open Banking add value for businesses in
a variety of ways and they have a huge potential to help banks grow
revenue and attract new customers when combined.”
“Consumers have been quick to adopt real-time payments in many
countries, because they offer additional convenience and
functionality,” comments Leo Lipis, chief executive of Lipis
Advisors. “Many people are just now beginning to realize that the
combination of real-time payments and open banking can improve
efficiency, compliance, and create new services for corporate
customers, too, and lead to increased revenue for banks.”
The paper outlines new use cases, spanning retail and wholesale
payments, that can benefit the entire value chain including:
Benefits of real-time payments and Open Banking for consumer
servicesThe convergence of real-time payments and Open Banking
will allow for the creation of new types of digital overlay
services, such as Request to Pay (RtP), whereby a biller can send
an electronic request for payment and customers can respond via
their mobile phone to make the payment. India is an example for how
digital overlay services can create an explosion in cashless
payments. The paper predicts that RtP is set to revolutionize
billing in sectors such as utilities, local government or mortgage
payments. Other services could combine real-time payments with
related financial services; for example, banks could offer faster
decision on short-term loans by combining real-time payment systems
and data on credit worthiness.
Benefits of real-time payments and Open Banking for corporate
servicesReal-time payments and Open Banking have the potential
to address inefficiencies for corporate customers in accounts
receivable and payable departments, where the reconciliation
process of incoming payments to outstanding invoices remains highly
manual. API-enabled systems and more functionally-rich data
standards can solve this, by providing invoices and payments that
map to the needs of the corporate customer.
Benefits of real-time payments and Open Banking for
regulatory complianceFor many banks compliance with
Know-Your-Customer (KYC), Anti-Money Laundering (AML), and
Counter-Terrorism Financing (CTF) sanctions often involve manual
steps that prevent straight through processing, which drives up the
cost and reduces the speed of payments. APIs could allow for
two-way communication with centrally held and up-to-date sanctions
lists, allowing for always up-to-date automated screening.
Furthermore, anti-fraud measures can also be shared among
consortium banks, allowing mule accounts to be identified more
efficiently.
Download the complete white paper Get More From Real-Time
Payments, from Lipis Advisors and ACI Worldwide:
www.aciworldwide.com/get-more-from-real-time-payments
About ACI WorldwideACI Worldwide, the Universal
Payments (UP) company, powers electronic
payments for more than 5,100 organizations around the world.
More than 1,000 of the largest financial institutions and
intermediaries, as well as thousands of global
merchants, rely on ACI to execute $14 trillion each day in
payments and securities. In addition, myriad organizations utilize
our electronic bill presentment and payment services.
Through our comprehensive suite of software solutions delivered on
customers’ premises or through ACI’s private cloud, we provide
real-time, immediate payments capabilities and enable the
industry’s most complete omni-channel
payments experience. To learn more about ACI, please
visit www.aciworldwide.com. You can also find us on
Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2018.ACI, ACI Worldwide, ACI
Payment Systems, the ACI logo and all ACI product names are
trademarks or registered trademarks of ACI Worldwide, Inc., or one
of its subsidiaries, in the United States, other countries or both.
Other parties’ trademarks referenced are the property of their
respective owners. Product roadmaps are for informational purposes
only and may not be incorporated into a contract or agreement. The
development release and timing of future product releases remains
at ACI’s sole discretion. ACI is providing the following
information in accordance with ACI's standard product communication
policies. Any resulting features, functionality, and enhancements
or timing of release of such features, functionality, and
enhancements are at the sole discretion of ACI and may be modified
without notice. All product roadmap or other similar information
does not represent a commitment to deliver any material, code, or
functionality, and should not be relied upon in making a purchasing
decision.
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version on businesswire.com: https://www.businesswire.com/news/home/20190313005494/en/
Katrin BoettgerE-mail: katrin.boettger@aciworldwide.comPhone:
0044 (0)7776 147 910Dan RingE-mail: dan.ring@aciworldwide.comPhone:
781-370-3600
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