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Introduction

Retail banking is an industry under pressure, and particularly so when it comes to payments. This report examines the findings from Ovum's Global Payments Insight survey and highlights the industry's challenges and priorities in 2017/18.

Highlights

  • Globally, 57% of banks will be growing their investment in software and services in 2017. This is up from 53% in 2016 and, in many cases, reflects sustained year-on-year growth to meet increasing customer expectations and competitive challenges.
  • Attitudes toward immediate payments are increasingly positive. In total, 61% of banks believe IP will enhance the ability of their institution to serve its customers, a view held even more widely in the Americas.
  • Banks in those markets with live deployments are more likely to see (or to be experiencing) revenue growth opportunities from IP. This is a view shared by 66% of institutions in these markets.

Features and Benefits

  • Refine your strategy by understanding the factors driving the payments IT investment plans of the global retail banking industry.
  • Benchmark your internal planning against your peer group, particularly around attitudes to immediate payments and partnership strategies.
  • Gain competitive advantage by delivering product and service enhancements in the areas your competitors are only considering today.

Key questions answered

  • What are the factors driving payments IT investment among retail banks?
  • What product areas are seeing the greatest growth, both today and in the near future?
  • Where are banks making the biggest investments in payments capabilities?
  • To what degree is immediate payments driving revenue growth for banks?
  • What are the latest views around open APIs for third-party developers?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for enterprises
  • Recommendations for vendors

Investing to enhance security and deliver new infrastructure will drive growth in 2017

  • Retail banks will be investing heavily in their payments capabilities in 2017 to ensure compliance and deliver new services
  • Investments in security and compliance, alongside new propositions in online and mobile, are top of mind for banks
  • Banks that have taken steps to modernize their architecture appear to be enjoying the benefits of lower operating costs

As immediate payment infrastructure spreads, banks are viewing this with increasing optimism

  • Immediate payment infrastructure is now being viewed by banks as an important revenue opportunity
  • The lessons from markets with live solutions should be heeded by those markets moving toward launch
  • Banks expect benefits from their investments in fraud prevention, as well as enhanced liquidity management

Open APIs have the potential to reshape the value chain, and banks are making their plans

  • Whether regulator-mandated or not, many banks are making strategic decisions around open APIs
  • Nevertheless, a large proportion of banks are taking a "wait and see" approach

Appendix

  • Methodology
  • Further reading
  • Author

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