Market participants of European and international payments are confronted with regulations and standardisations that keep changing and this trend continues. FinTechs push the market with innovative financial services and customers’ expectations are growing. For the banking sector this results in a continuously increasing number of challenges in the coming years. Here it is important to stay on top of things and to examine the relevance of trends.
For a long time cross-border and high-value payments were said to be a less innovative segment of financial services. Apart from the introduction of online banking, not much has changed in this sector in the last decades. However, a major shift happened with the realisation of the Single Euro Payments Area SEPA in the year 2014. At the same time, numerous FinTechs have changed the market with financial services that are easy to standardise.
Easy and rapid payments processing in a secure environment and an improved service quality have been expected for a long time, not only for SEPA but also for international payments. New rules, standardisations and industry initiatives always lie ahead for financial institutions, for example the ISO-20022 standard for TARGET2 as well as SWIFT. The initiatives are impelled by various promoters and have the potential to massively change the international payments landscape. To keep up with these changes or even actively shape them processes have to be optimised, new technologies adapted and digitisation strategies consequently implemented.
PPI is happy to accompany you with in-depth expertise on your way to a smooth implementation of the individually necessary measures. Our employees see the big picture and advise you on all aspects from the strategic alignment and the selection of suitable solutions to the specific milestone planning for the implementation of new applications.
Greater transparency in cross-border payments: SWIFT gpi
One of the many innovations that change cross-border payments is the initiative Global Payments Innovation (GPI). With GPI the organisation SWIFT introduced a new service designed to improve and accelerate international payments which has been demanded for years.
For years financial institutions and other market participants have been employing uniform European payment solutions. As an important next step on the way to a global uniform payments infrastructure the Eurosystem has decided to replace the SWIFTNet-FIN messages (MT messages) used for TARGET2 payments with XML-based MX messages.
The payments sector has been going through changes for years, and now cross-border payments are the subject of major changes as well. They have been driven by new regulations and modern technologies. In our white paper on cross-border payments we look at all relevant topics and outline possible scenarios.