The UK banking market unfortunately hit the front pages again with an RBS core systems failure impacting millions of customers. As Banks try to “deliver more with less” we are seeing more of these events around the world. As consolidation of banks continues combined with aggressive cost management over recent years, at PayX we all too often see a complex cocktail of legacy infrastructures, increasingly stressed to perform more, managed by a restructured and more volatile distributed workforce.
This leaves a classic catch-22: minimise cost, investment and risk, while at the same time, ensure market share increases through modernised products and innovation. The ultimate infrastructure question is how do you utilise existing infrastructure, as clearly you cannot replace 20 years+ intricacies overnight, to deliver new products and service, without negatively impacting core systems?
The good news for some are the answers and success stories are emerging; one being Barclays Pingit Mobile P2P initiative in which PayX assisted. The successful recipe included smart sponsorship, design and execution with innovation on top of existing infrastructure. It is not simple and it can be done but, as some banks are finding out to their detriment, it takes a constant expert focus and managed quality to achieve the desired short and long term results.
One thing is certain, you must be in the news; no-one can afford to be left behind, nor create the headlines which damage the brand.
6 June 2012 – According to a new research report from Berg Insight, the market for NFC-ready POS terminals grew fiercely in 2011 with annual shipments doubling to an estimated 2.5 million units worldwide. The rapid growth was driven by a transition in the NFC-payments ecosystem from performing trials to accelerating the rollout of NFC-ready payment infrastructure, in preparation for the arrival of NFC-based mobile payment services.
13 June 2012 – At this week’s WWDC, Apple introduced a new application called “Passbook,” meant to function as an organizer for all your passes. It supports store cards, gift cards and coupons out of the gate, replacing their plastic counterparts, and providing an Apple-approved way to get consumers paying at checkout with their mobile phones. At first glance, it seems that Passbook’s launch is bad news for mobile wallet players like Square, PayPal, and others. But it might actually represent an opportunity for everybody else.
4 June 2012 – Consumers who are interested in mobile wallets* would consider using alternative players to their primary bank for mobile wallets and for banking. These consumers also expressed strong interest in using a wide variety of services in their mobile wallet, such as search & shop, loyalty programs and real-time incentives. These are two major findings from a mobile wallet study conducted by Carlisle & Gallagher Consulting Group, a management and technology consulting firm serving the financial services industry.
29 May 2012 – Worldwide mobile payment transaction values will surpass $171.5 billion in 2012, a 61.9 percent increase from 2011 values of $105.9 billion, according to Gartner, Inc. The number of mobile payment users will reach 212.2 million in 2012, up from 160.5 million in 2011.
6 June 2012 – Faced with regulatory reform challenges and a lackluster economy, banking executives are focused on reexamining business models and initiatives that increase operational efficiency and reduce costs, according to a recent survey by KPMG LLP, the audit, tax, and advisory firm.
8 June 2012 – Paying with cash is more common than a year ago and accepting customers’ payments by cash is, on average, 24 times cheaper for retailers than credit card payments.The British Retail Consortium (BRC) findings published today (Friday) make clear that, at a time when many household budgets are under severe pressure, customers are using cash more often because it helps them manage their money and prevents them spending money they haven’t got, and shopping more often but spending less each time.
28 June 2012 – A new global study from MasterCard Worldwide shows Australia is on track for a cashless future – but the country still has obstacles to overcome before mobile payments become the norm. The MasterCard Mobile Payments Readiness Index (MPRI) reveals Australia now sits middle of the pack globally in our readiness for mobile payments, with 17 percent of Australians surveyed willing to use a mobile device to pay for goods in-store.
22 June 2012 – As the debt crisis continues, IT spending growth across Europe looks bleak for 2012 and 2013, according to a new information and communications technology (ICT) forecast from Forrester. According to the report, Europe will see 1.2% growth in euros in European ICT purchases in 2012, shrinking the continent’s share of the market and making it distinctly smaller than that of the Americas and Asia Pacific.
14 June 2012– Javelin Strategy & Research’s latest report – “Reaching the Underbanked and Unbanked Consumers in 2012: Strategies for Connecting with Mobile Financial Services” – delves into the world of the underbanked and unbanked, identifying future profitable consumers and revenue opportunities for financial institutions (FIs). Javelin defines the underbanked as U.S. adults without a checking account, while unbanked consumers do not have a banking account.
20 June 2012 – Responding to consumers’ growing interest in banking from their mobile devices, retail banks plan to invest more money to enhance their mobile offerings, according to the first-ever survey of Consumer Bankers Association (CBA) members conducted by Forrester Research, Inc.