Sibos Update

Is it time to re-invent cross-border payments?

Banks have seen their retail payments franchises come under threat from new entrants, and now are looking to harness technology innovation themselves to meet the heightened expectations of their corporate and institutional clients. With competition mounting from fintechs and other non-traditional providers, panelists will discuss the potential strategies that will secure banks’ future role in cross-border payments.

Titled ‘Re-engineering international payments for a fast, digital age’, the session will reflect the changes that are already well underway in the revamping of traditional correspondent banking networks. Partly due to increased risks, costs and regulatory requirements, banks have been reappraising their relationships and service propositions over the past decade. Today, they are much more focused on specific industry segments, trade corridors and currencies, as they look to deliver greater value at a time of significant business model overhaul for multiple clients.

Inevitably, data and technology play a significant role in both understanding clients’ evolving cross-border payments needs and in fulfilling them. For example, many banks are already leveraging SWIFT gpi – which provides greater speed, visibility and certainty along the transaction chain – in a variety of ways to differentiate their international payments services. Elsewhere, banks are applying powerful new data analytics capabilities to improve the efficiency and security of client payment flows, and to identify emerging trends and new service requirements.

Similar to the domestic payments environment, the development of open platforms using industry standards is playing a significant part in the delivery of efficiency and innovation to clients. This is harder to achieve on a cross-border basis, but already industry collaboration and use of utilities is on the rise to resolve common onboarding challenges, for example. Meanwhile, the incremental steps being taken toward a seamless ISO 20022-based global payment infrastructure promise yet further opportunities. For each bank, a key question will be how best to utilise the possibilities opened up by industry level initiatives and technology innovation to meet and anticipate the expectations of its particular client base.

On Monday, October 22 at 2pm, moderator Alison Tudor-Ackroyd, managing editor of CorporateTreasurer, will discuss these and related issues in depth with the help of our expert panel:

  • Clara Shi, head of financial institution strategic partnerships, international business group, Ant Financial
  • Molly Shea, SVP and global manager, global money transfer, Asia Pacific, Western Union
  • Philippe Henry, global head of corporate, financial and multinationals banking, HSBC
  • Jennifer Boussange, treasury fulfilment, service and operations executive, Bank of America Merrill Lynch

Preview the other Sibos 2018 Big Issue Debates here: