iGTB recently announced that the Canadian bank CIBC had successfully integrated iGTB’s Payments Services Hub in their implementation of a next generation payments infrastructure for corporate clients. Following this news, iGTB’s Al Carpetto has written the Top Story in this year’s Financial IT Sibos Special Issue where he expanded on payments hubs enabling radical change in the payments industry, and explained how the future of payments will centre not on processing payments, but on ensuring that they are real-time and “business aware” – allowing banks to understand the context of each and every interaction.
Carpetto noted that profitability concerns, regulatory challenges and rising customer expectations in today’s payments landscape were forcing banks to reinvent themselves or run the risk of fading into irrelevance. First and foremost, he argued that they must support real-time payments, but also stressed the importance of assessing what real-time might mean from a consumer behaviour, regulatory compliance and banking IT infrastructure perspective.
One solution Carpetto recommended is the implementation of a payments hub. This is a centralised payments and transaction management solution that deploys a horizontal layer across all payment channels and interfaces to orchestrate the handling of instructions and execution of payments in a holistic manner. It acts as a single source of truth for all payment transactions, enabling banks to manage – on a single platform – any type of payment transaction, instrument type, customer, channel or payment standard.
Crucially, a payments hub can support large transaction volumes reliably in real-time, satisfying the customer demand for one click, one second payments, Carpetto noted. But they also enable banks to get “contextual”; going beyond mere transactions to recognise and solve the real, underlying business need behind them – a fresh business model that supports the dawning of a new era of payments.
iGTB’s own Payments Services Hub enables payments to be orchestrated horizontally across the bank, with the aim of making banks an integral part of their corporates’ supply chains. This is a step further than just the orchestration of payments across channels, and – with C2C, C2B, B2C and B2B segments also converging – Carpetto explained that this was the kind of holistic approach needed for banks to thrive in the payments world of tomorrow.
To read the full article please go here and turn to page 7.