What banks must consider in a changing payments landscape

The acquired market in Europe and the broader world passes through a period of strategic rethinking. Traditional financial institutions evaluate their role in the ecosystem of payments, driven by dual forces of technological disorder and advanced customer expectations. As a person who worked closely with banks, payment service providers and retail platforms across multiple areas, I have already seen how priorities turn and how modernization approaches vary widely.

For many banks, payments are not the most profitable part at work. revenue often comes more than auxiliary services such as Credit, FX, M&A Consulting or Liquidity Management. However, payments are a decisive point of communication in the broader retail relationship. It is the entry point through which banks build, support and deepen the customer’s participation. Loss of foothold, especially for non -banker competitors, can lead to a series of lost opportunities in more profitable business lines.

As a result, we now see two distinct strategies. Some banks have chosen out of obtaining or reducing their role, and choosing them instead in partnership with third -party service providers who bring the technical scope and modern interfaces. Others wear a basic service, but doing so requires a major infrastructure update.

One of the common misconceptions that I face is that migration to a modern platform in nature is an endeavor for a year and a high risk and a million euros. For many banks, this perception creates stagnation. They realize the need to improve, but they feel restrictions of the expected complexity of change.

The fact is that technology has advanced to the point where the timelines for integration and costs can be reduced significantly. I have seen the applications running on the air at least five weeks, including trade on the plane and technical composition. The key lies in clarity about the deportation process: any components that move, what remains, how the risks are managed, and how the interior teams are supported by moving.

Modern acquisition is no longer only about processing transactions; It comes to submitting practical data. Today’s retailers want transparency: an insight in real time on the timelines for settlement, fees, reconciliation, fraud risk, etc. The ability to provide a unified vision through e -commerce and payments inside the store is no longer nice; It is expected.

Many ancient systems, created in an era, were expensive data storage and analytical capabilities are essential, simply not designed to meet these demands. On the contrary, modern systems are built around a central data model, allowing a full multi -channel vision. This shift is transformed, not only for banks but also for their customers, who can use visions to improve margins, discover fraud, and simplify operations.