Celent Model Bank 2015, Part 5: Case Studies of Payments Innovation in Banking

by Gareth Lodge,  Zilvinas Bareisis, March 23, 2015
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its eighth year, is to spotlight effective uses of technology in banking. The approach that Celent takes is to seek examples of best practices in technology usage which, in aggregate, would answer these three questions.

These examples span a five part report series:

In Part 5, Celent profiles four innovative initiatives in Payments Innovation and emerging technology.

  • ANZ: International Payments Transformation
  • BBVA: BBVA Wallet
  • Citi: CitiConnect ERP Integrator
  • Union Bank of the Philippines: Mobile Money Cash Management

Bankers must not only modernize, but transform, their internal systems and the ways in which they interact with a vast web of customers, colleagues, counterparties, and regulators. Doing so is no longer optional. Innovation is now an imperative in financial services.

“Most financial institutions agree with this statement,” says Gareth Lodge, a senior analyst with Celent’s Banking practice and coauthor of the report. “But viewing innovation as critical and delivering innovative, game-changing initiatives are two different things. This has been traditionally very true in payments, when payment operations are mission critical."

Nominations were accepted in late 2014, and the Celent Banking team selected winners based on degree of innovation, degree of difficulty, and business benefits provided. Each Model Bank winning initiative is presented as a detailed case study within the report, including detailed descriptions of business drivers, technology environments, and quantitative success metrics. Lessons learned are proposed at the end of the report.

This 36 page report contains four Celent Model Bank case studies, five tables, and 10 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

Executive Summary

1

 

Key Research Questions

1

Introduction

4

 

Summary of Model Bank Components

5

Innovation in Payments

9

Case Studies in Payments Technology

11

 

ANZ: International Payments Transformation

11

 

BBVA Wallet

16

 

Citi: CitiConnect ERP Integrator

23

 

Union Bank of the Philippines: Mobile Money Cash Management

27

Conclusion

32

Leveraging Celent’s Expertise

33

 

Support for Financial Institutions

33

 

Support for Vendors

33

Related Celent Research

34

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