Banks, Retailers, and Fintech: Reimagining Payments Relationships, Part One: The Bank Perspective

by Gareth Lodge,  Zilvinas Bareisis, January 19, 2016
Industry Trends
Global

Abstract

Retailers and banks need each other, but often have very different perspectives on payments. The situation is not helped by a growing number of intermediaries, specifically Fintech players. This series of three reports commissioned by ACI Worldwide and written by Celent explores how payments relationships can be reimagined, taking a perspective of each main party, namely retailers, banks, and Fintech.

Celent has released a new report with ACI Worldwide titled Banks, Retailers, and Fintech: Reimagining Payments Relationships. Part One: The Bank Perspective. The other reports in this series include:

The reports are authored by Zilvinas Bareisis and Gareth Lodge, senior analysts with Celent’s banking practice.

Banks, retailers, and Fintech form a payment ecosystem that we believe is more symbiotic than many would want to admit. Retailers care about accepting payments efficiently and effectively, but also have various other needs, from physical cash management to borrowing money and paying suppliers.

Retail banks have been responsible for most of the payment instruments issued to consumers and used at the merchant tills. Yet, it is corporate banks that have the main relationship with retailers. Even though both sides may belong to the same universal bank, they often operate in silos.

Fintech companies sense the opportunity and are trying to insert themselves in a variety of ways. What will their growing presence mean to the relationship between banks and retailers? Will it prove to be a wedge further driving them apart, or the glue that bonds everyone together?

Celent believes that it is time to reimagine the payments relationships between banks, retailers and Fintech. Combative stances and door slamming will only result in lost opportunities for all.

To reimagine those relationships, it is helpful to start by understanding the perspectives of each main party. Therefore, Celent has written three reports in the series with each exploring the perspective of a different stakeholder. This report looks at banks and examines three research questions below.

“The disruption in payments is real; however, the disintermediation effect to date has largely been contained,” says Bareisis. “However, banks certainly cannot afford to be complacent. Changes sweeping the industry suggest that there is a lot more disruption ahead with potentially much more significant impact on banks. As banking continues to change, the survivors will be those that reimagine relationships with their customers and partners.”

This 20-page report contains six figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Introduction

1

 

Key Research Questions

2

How Real Is the Disruption in Payments?

3

 

Banks Under Pressure

3

 

Disruption Has Not Equalled Disintermediation (Yet)

4

Fasten Your Seatbelts: More Disruption Ahead

8

 

PSD2 and XS2A

9

 

The Role of Tech Giants

9

 

Blockchain in Banking

10

 

Central Banks and Cryptocurrencies

11

Glancing into the Future

13

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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