The banking and financial services industry is experiencing fundamental changes. The changing needs and expectations of consumers, along with regulatory challenges, not to mention increased competition from non-bank companies like Google, Facebook and Apple are making comprehensive, innovative platforms a necessity. To effectively rise to the challenge on each of these fronts, financial institutions must develop a holistic payments strategy.
The term “Payment Convergence” has become a popular conversation topic in the financial services industry for both financial institutions as well as solution providers. Why would a single platform that could process many payment types be needed for a financial institution? Indeed, the answer seems obvious – improved efficiency, cost savings, streamlined vendor management, better customer experience – the list goes on and on. Some key factors, including the rapid rate of mobile adoption and emerging trends of mobile and contact-less payments, has given way for the once “pie in the sky” idea of a consolidated payments platform to become a reality.