Now in its sixth year, the
World Payments Report
from Capgemini, The Royal Bank of Scotland (RBS),and the European financial marketing association (Efma) looks at the payments business as it faceschallenges from economic and competitive conditions, technology advances, increased regulatory pressure and customer demands.Payments and other transaction banking services proved resilient during the economic crisis, but therapidly changing external environment will require banks to decide to what extent payments are core totheir business strategies. The
World Payments Report 2010
looks at global trends in payments volumes, describes progress inimportant payments-related initiatives, such as the Single Euro Payments Area (SEPA) and thePayment Services Directive (PSD), and looks at how new regulations are creating additional pressure onthe payments landscape. We include an overview on the Basel III framework, which will require strong management attention,and we spotlight its more stringent liquidity requirements, as they will increase costs and could requirerepositioning for some banks. We explore how new technologies and competition are making the payments universe more complexand expansive and why, as a consequence, banks will need to dedicate more strategic attention to theirpayments value propositions. We describe how banks will need to consider their options carefully for optimising their paymentsbusinesses, as the transformation of the payments value chain is accelerating. We then focus on how banks will need to employ an intense parallel strategy, comprising revenue-focussed and cost-focussed initiatives, leverage sourcing strategies and consider mechanisms such asPayments Hubs to make these parallel strategies feasible and allow banks to achieve more with less. We hope this year’s report provides useful insights.
The Royal Bank of Scotland
European financialmarketing association