Jeremy Light

The global rise of Bitcoin has introduced the world to cryptocurrencies, distributed consensus ledgers (DCLs) and blockchains. DCL technology has the potential to enhance efficiency, trust, transparency, reach and innovation in the financial markets. And while there are many other use cases – including in securities and capital markets – payments is one of the areas where DCL may prove most valuable.

This report explains in clear terms where DCLs may benefit the world of payments, and… Show more

The global rise of Bitcoin has introduced the world to cryptocurrencies, distributed consensus ledgers (DCLs) and blockchains. DCL technology has the potential to enhance efficiency, trust, transparency, reach and innovation in the financial markets. And while there are many other use cases – including in securities and capital markets – payments is one of the areas where DCL may prove most valuable.

This report explains in clear terms where DCLs may benefit the world of payments, and separates the practical reality of using DCLs from the hype. Show less

In this paper, we examine the opportunity for creating a competitive market in access services for real-time, 24/7 payments in UK

Our customers are not asking for it” has been the standard reaction to immediate payments of many banks for many years. Even in the UK, the world leader in mass real-time payments since 2008, it was government pressure on the banking industry, not market demand or a desire to innovate that led to the creation of the Faster Payments system.

However this mindset is changing rapidly. Consumers expectations and tolerances have been transformed by the smartphone and the services they provide… Show more

Our customers are not asking for it” has been the standard reaction to immediate payments of many banks for many years. Even in the UK, the world leader in mass real-time payments since 2008, it was government pressure on the banking industry, not market demand or a desire to innovate that led to the creation of the Faster Payments system.

However this mindset is changing rapidly. Consumers expectations and tolerances have been transformed by the smartphone and the services they provide – always on, ubiquitous, real-time with instant transactions. Any banking service that enables, for example mobile payments with real-time notification to the beneficiary, but with delayed availability of funds is not an innovation, it is a dud. Immediate inter-bank payments are therefore a core requirement of any banking system today, which is why initiatives are appearing globally – from Sweden and Finland, to Singapore and Australia. Even in the USA where bank payments are little changed since the Jurassic era (in stark contrast to those provided by its non-bank technology sector), there are stirrings towards immediate payments.

As seen in the UK, although bank customers may not demand for immediate payments, once they have it, they find creative ways to use them to make their lives easier and more efficient. The benefits range widely and include ability to instantaneously transfer money to cash-strapped friends and family, immediate payment for time-dependent services, improved cash-flow management for both individuals and businesses, just-in-time inventory management leading to reduction in working capital.

You will be glad to know that at Accenture, in collaboration with VocaLink, the provider of the UK Faster Payments system, we have written a Point of View, “Immediate Payments” which explores the importance of real-time payments to banks.

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Payment services have emerged as a key point of competitive differentiation for corporate banks, serving both as a significant revenue generator and an ‘anchor product’ for other offerings.
However, changing market conditions across a wide array of dimensions—including regulation, international trade, customer needs, and information technology—are now challenging banks
to get their house in order if they are to seize the payments opportunity.The leaders in the payments industry are… Show more

Payment services have emerged as a key point of competitive differentiation for corporate banks, serving both as a significant revenue generator and an ‘anchor product’ for other offerings.
However, changing market conditions across a wide array of dimensions—including regulation, international trade, customer needs, and information technology—are now challenging banks
to get their house in order if they are to seize the payments opportunity.The leaders in the payments industry are responding to pervasive change in two interrelated ways.

First, we’re seeing banks ‘fix the core’—industrializing payments and building the capabilities necessary for differentiation. This effort, described in this point-of-view paper, involves banks establishing fit-for purpose operating models and, where necessary, building ‘hub’ architectures to streamline banking operations and transaction management.

These efforts lay the groundwork for the second area of response that we’re seeing, ‘market differentiation’, which is described in a further Accenture paper in this series. Show less

Payment services have emerged as a key point of competitive differentiation for corporate banks, serving both as a significant revenue generator and an ‘anchor product’ for other offerings.
However, changing market conditions across a wide array of dimensions—including regulation, international trade, customer needs, and information technology—are now challenging banks
to get their house in order if they are to seize the payments opportunity.The leaders in the payments industry are… Show more

Payment services have emerged as a key point of competitive differentiation for corporate banks, serving both as a significant revenue generator and an ‘anchor product’ for other offerings.
However, changing market conditions across a wide array of dimensions—including regulation, international trade, customer needs, and information technology—are now challenging banks
to get their house in order if they are to seize the payments opportunity.The leaders in the payments industry are responding to pervasive change in two interrelated ways.

First, we’re seeing banks ‘fix the core’—industrializing payments and building the capabilities necessary for differentiation. This effort, described in this point-of-view paper, involves banks establishing fit-for purpose operating models and, where necessary, building ‘hub’ architectures to streamline banking operations and transaction management.

These efforts lay the groundwork for the second area of response that we’re seeing, ‘market differentiation’, which is described in a further Accenture paper in this series. Show less