Velocity and value in the world of real-time payments

Finance31 Oct 2024

Sponsored by Capgemini

The payments landscape is changing – rapidly. We are seeing a seismic shift toward digital transactions. As consumers embrace digital payments over cash and feed demands for seamless experiences, the industry is evolving at breakneck speed.

Supportive regulations and innovative initiatives such as open finance, instant payments and CBDC are at the heart of it. From possible, to popular, to ubiquitous – one after another, new payments technologies are exploding onto the financial services landscape, faster than many institutions can keep up with. Yet staying current has never been more important.

To remain competitive, banks must exceed increasing customer expectations for digital-first experiences as well as balance the overall regulatory impact. The key is to leverage a new technology environment, applying standardisation and solutions such as cloud, APIs, generative AI and more. For financial institutions, customer growth will depend on the ability to adopt and develop new technologies, particularly in digital currencies, enterprise client integration services, and the latest payment trends.

Digital, instant and open

The advent of open finance is one of the greatest changes of our time. With its ability to enable instant payments, open finance is set to deliver substantial value to financial institutions in the form of a more dynamic and efficient payments ecosystem. It empowers consumers and businesses with personalised financial products, enhanced credit assessments, and streamlined financial management. And as use cases expand and more non-bank payment service providers participate, the growth will only accelerate. The value to financial institutions is immense, but the challenges – technical, security and cultural – cannot be overlooked.

Explore the latest trends in payments in Capgemini’s World Payments Report 2025 here.

Time to embrace digital currencies

A key part of the ongoing transformation in the payments industry is the shift from cash to cashless transactions, with digital currencies leading the way. Currently, 70 per cent of central banks are preparing to issue their own digital currencies, with the Digital Euro expected to launch this decade. The time for banks to act is now.

Banks will soon find it necessary to adopt central bank digital currencies (CBDCs), and must begin strategising and implementing the necessary technology. Success in this area depends on understanding the regulatory environment, developing a comprehensive roadmap and addressing key IT gaps, including architectural modifications and modernised payment engines.

Learn more about harnessing digital currencies here.

Client integration services in corporate cash management

Another feature of the new payments landscape is a range of personalised payment services. In the realm of corporate cash management, success hinges on building and nurturing meaningful relationships with enterprise clients. These clients, who contribute 56 per cent of the total value in the payments industry, have seen the offerings available to retail clients, and they are no longer content to lag behind. They demand real-time access to account information, faster and more flexible transactions, high levels of personalisation and deeper engagement with their providers.

To meet these evolving expectations, banks must prioritise top-tier client integration services that bridge the gap between retail and corporate offerings. A commitment to client excellence and centricity is a major priority.

Building powerful client integration services takes commitment and significant investments in time, energy, human resources and technology. But for financial institutions looking to attract and retain corporate clients, diverse cash management services are a no-brainer.

This age of exploration is nowhere near finished, with multiple game-changers on the way. These include advanced digital wallets and disruptive account-to-account payments. To remain competitive, banks must adopt a multi-rail strategy and explore innovative use cases, particularly in B2B payments. Above all, by fully embracing digitalisation and adopting an exploratory mindset, financial institutions can set the stage for continued growth and sustainability in an increasingly digital world.

Learn about the six priorities for next-gen client integration services here.