Celent Model Bank 2014, Part 4: Case Studies of Payments Innovation

by Stephen Greer,  Zilvinas Bareisis, April 4, 2014
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its seventh year, was to try to answer an apparently simple question: “What would it look like for a financial institution to do everything right with today’s technology?” To answer this question, Celent sought examples of best practices in technology usage. These examples span a five-part report series:

In Part 4, Celent profiles three innovative initiatives:

  • Bankgirot: Immediate Payments Initiative
  • Barclays: Global Payments Initiative
  • UBS: NFC Mobile Authentication

The payments industry is undergoing a seismic shift. The use of cash, cheques, and other paper instruments continues to decline as the industry migrates to electronic payments. Ubiquitous, always-connected smartphones are rapidly reshaping not just payments, but the entire retailing landscape, from how consumers discover products and prices to how they shop and pay.

“Banks have always been at the forefront of providing payment services to their customers. However, much of the change in payments today is driven by outsiders,” says Zil Bareisis, Senior Analyst with Celent’s Banking Group and coauthor of the report. “Banks around the world are being challenged to keep up with innovation while having to manage their aging legacy payments platforms.”

“Payments is a fragmented market, and institutions have to make difficult decisions where to invest,” adds Stephen Greer, Analyst with Celent’s Banking Group and coauthor of the report. “Consumer demand has driven the financial services industry to start adopting modern systems, but existing barriers have slowed progress.”

This report provides an overview of the payments landscape, giving a summary of the state of innovation in the market. Then Celent profiles three innovative projects, and finishes with conclusions that are indicative of broader market shifts.

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

Executive Summary

1

Introduction

3

 

Summary of Model Bank Components

4

Payments Theme Summary

8

Case Studies in Payments Technology

10

 

Bankgirot: Immediate Payments Initiative

10

 

Barclays: Global Payments Initiative

15

 

UBS: NFC Mobile Authentication

19

Conclusion

23

Leveraging Celent’s Expertise

24

 

Support for Financial Institutions

24

 

Support for Vendors

24

Related Celent Research

25

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