The payments landscape is changing fast. The regulatory drive for open banking and consumer demand for real-time payments is creating opportunities for new technologies and new players, causing disruption in a previously stable sector. Wednesday’s Big Issue Debate – Disruption in the Payments Landscape – will highlight how new capabilities such as artificial intelligence, distributed ledger technology, APIs and instant payments are transforming payments in multiple geographies
Guided by moderator John Mair, Sydney-based economics editor for Asia at Thomson Reuters, panellists will share their thoughts, experiences and predictions about where today’s disruption is leading, offering their perspectives on the future possible roles of incumbent banks, insurgent fintech service providers and the ‘big tech’ giants of e-commerce in an increasingly real-time payments market. And there may be clues about the evolution of payments from local experience. Australia’s New Payments Platform (NPP) went live in February 2018, offering an example of an instant payments infrastructure designed to meet emerging customer needs and foster innovation among payments service providers.
For some, the received wisdom is that nimble fintechs have the upper hand in exploiting the opportunities of payment market disruption, With their agile development processes and their grasp of the potential of APIs, cloud, DLT and artificial intelligence, they have the tools and skills to develop fast, transparent and tailored services that meet customer demands informed by the digital age. Meanwhile, banks are weighed down by inflexible and slow legacy systems and burdened by ever-increasing regulatory expectations.
The reality may be different. Banks have always adapted to new opportunity, whilst protecting customers’ interests and working as a trusted partner through close attention to operational robustness, process standardisation and best practice. Further, they are well positioned to understand the payment implications of wholesale clients’ business model changes, whilst handling the risk management challenges of the fourth industrial revolution, from data privacy to identify theft to cyber-security. Indeed, many banks are already demonstrating that they have not only the domain expertise, but also a growing understanding of emerging technologies and demands to embrace new technologies and leverage innovative payment schemes.
As we move toward a more secure, efficient, transparent and frictionless payments landscape, perhaps no group of providers will assert dominance. Instead, firms will work simultaneously as competitors, clients and collaborators in the efforts to meet specific client needs, deploying diverse talents and strategies. Whatever your role in payments, it is very likely to be subject to disruption. Save the date for this Big Issue Debate at 2pm on Wednesday, October 24 to gain new insights into changes disruption will bring from our expert panel:
- Leila Fourie, CEO, Australian Payments Network
- John Gibbons, head of Global Transaction Banking, Deutsche Bank
- Ulku Rowe, technical director, financial services, Google
- Esther George, president and CEO, Federal Reserve Bank of Kansas City