Andy Schmidt, Principal Executive Advisor, CEB TowerGroup

Andy Schmidt, Principal Executive Advisor, CEB TowerGroup, shares insights on payments modernization at the 8th Annual TCS BaNCS Customer Forum.

Payments modernization is viewed through one of two lenses: Either it’s a must-do, akin to compliance, or a more visionary approach that seeks to do all sorts of new things.

The profile of a specific financial institutions tends to fall along this spectrum based on leadership. If it’s the CFO who became the CEO, you’re on the compliance end. If you’re led by the CIO team, you’re going to look at this as an opportunity.

We see the proper response being modernization through a payments hub. This has the potential to improve customer service and customer experiences, improve processes, increase sales and improve customer acquisition.

In the early days, the idea was to have a high-value hub and a low-value hub. That’s hard to manage in today’s environment. Instead, the majority of banks want a single hub in place for all their payment types.

Take an approach where you can accept any payment type in any format, put it through a common process and deliver it to any endpoint. It gives you so many opportunities to be able to control your infrastructure through a common interface, and to push rules out once rather than dozens of times.

Read Andy’s remarks on payments modernization.

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