As per a report “Innovation in Payments: The Future is Fintech” by BNY Mellon venture capital investment, accelerator programs and an active focus on the usage of new technologies via allegiances with fintech companies should become the top priorities for banks.
This, the report, says is extremely important as the multiplicity of new payment capabilities come to the fore.
The report follows on from “Global Payments 2020: Transformation and Convergence” and digs deeper into the growing influence of fintech in transaction banking.
Moving further the report also tries to dissect the direct and indirect impact of the new technology on payments and the way in which it is molding client behavior. It also tries to understand as to how the fintech industry is also enhancing expectations for a better, faster and for more innovative solutions across the payments spectrum.
Ian Stewart, Chief Executive Officer of BNY Mellon’s Treasury Services business quipped that “while the banking industry is traditionally conservative about change, any hesitation or ambivalence here could be costly. In order to position themselves at the centre of the payments industry of tomorrow, banks must act today to understand, interact with, and cherry-pick from the full smorgasbord of fintech developments.”
Stewart also said that era of fintech era was all to see and the banks shouldn’t just be content by their presence alone, but instead they should also have a clear strategy in place in order to adapt to and benefit from fintech-fuelled changes.
The report also ponders over how consumers and clients initiate and process transactions and claims now it is no more the case of new currencies or faster payment methods, but an entire rethinking of how transfers of any “value” might be undertaken.
Further, it states that an increasing number of fintech firms are now leaping new heights and from the phase of start-ups they are now moving on to multi-billion dollar and listed prestigious companies.
It is worthy to note that no less than 4,000 fintech start-ups are active at present and the global investment in fintech ventures has also tripled in 2014 to jump to $12 billion.