EBAday, the leading event for professionals in transaction banking and payments, delves into various facets of the sector with a depth unparalleled by other conferences. On the second day, senior executives participated in discussions covering instant payments, correspondent banking, regulatory challenges, innovation, Payments as a Service (PaaS), and collaborative models between public and private sectors. Here’s a summary of the key themes and expectations for 2024.
Instant Payments
A central focus was the goal of achieving instant payments globally, with Vincent Brennan, senior advisor for banking and payments at Accenture, leading a panel featuring industry experts. Panelists included Carmen Dengra of PagoNxt Payments, Annie Gilchrist from Currencycloud, Uwe Klatt from GEVA Group, Isabel Schmidt of BNY Mellon, and David Watson of The Clearing House.
The discussion highlighted a shared priority among banking ecosystem participants: enhancing end-user experience. For instant payments to be effectively delivered, substantial collaboration with treasury departments is essential, alongside an infrastructure tailored to market needs. The panel emphasized understanding payment purposes to align internal departments and effectively address client needs, distinguishing between retail and corporate use cases.
The panelists acknowledged that while the industry has familiarity with consumer use cases, a greater focus on transparency is necessary moving forward. They noted that innovation must be continuously validated against the specific issues the industry aims to address. A conversation around remittances illustrated how improved cross-border real-time payments could benefit workers worldwide, highlighting a need for greater dialogue about these use cases compared to corporate demands.
Correspondent Banking
Another long-standing topic of discussion is correspondent banking, which faces challenges from rising costs and compliance pressures. Susana Delgado, global head of consumer and SME payments strategy at Swift, led a panel featuring representatives from Deutsche Bank, NICE Actimize, BBVA, Citi, and Banking Circle.
While some view correspondent banking as faltering, others are exploring how emerging technologies such as distributed ledgers and blockchain may allow payment infrastructures across different regions to interact effectively. The panelist discussions stressed the importance of enhancing connectivity within the Swift network and improving the client experience through innovation.
Financial market infrastructures (FMIs) that support transaction clearing and settlement were highlighted as critical for enabling extensive operations, presenting significant opportunities for software providers to assist financial institutions in delivering services across borders.
Regulation and Customer-Centric Innovation
In a strategic roundtable, Sulabh Agarwal of Accenture was joined by leaders from Citi, Caixabank, and NatWest Group to discuss the impact of new technologies on financial services. The panel agreed that the focus has shifted from traditional concerns like safety and customer protection to prioritizing cost, transparency, and speed.
As clients increasingly demand choices for cross-border payments, the emergence of new channels must be supported by proper regulations and upfront fee transparency. The discussion asserted that financial institutions failing to deliver on these fronts risk losing market share, prompting regulators to consider revisions to standards such as PSD2 and the implementation of ISO20022.
Payments as a Service Strategies
Daniel Hellmann from Deloitte led a conversation on the advantages and challenges of adopting a Payments as a Service (PaaS) approach. He was joined by experts from JP Morgan, BBVA, TAS, and Nexi.
The discussion initiated by questioning whether traditional banking services could align with PaaS principles, emphasizing the goal of financial institutions to enable their clients to effectively serve their own customers through streamlined access points. Various models of PaaS were explored to enhance both existing payment infrastructures and overall service offerings.
Public and Private Sector Collaboration Models
Gareth Wilson from Capgemini moderated a final discussion focused on how commercial banks, payment service providers (PSPs), and central banks can enhance global payment interoperability. The panel welcomed representatives from Citi, the Deutsche Bundesbank, RTGS.global, and PRETA.
The concept of cooperation was a recurring theme throughout the event, with discussions centered on how improved collaboration between the public and private sectors could foster greater interoperability and transparency in payments. Partnerships with regulators will be crucial when integrating new technologies like digital assets, ensuring that legacy banks can effectively adopt 24/7 digital capabilities.
In conclusion, Debi Bell spoke with leaders from the Euro Banking Association to recap key insights from EBAday 2023 and announced that the next event will take place on June 18-19, 2024, in Lisbon, Portugal.