2018 Asia Pacific Vendor Landscape: Payment Hubs: A Look at The Key Providers of Payment Hub Solutions in Asia

KA2018-08
August 2018
2018 Asia Pacific Vendor Landscape:

Payment Hubs
A look at the key providers of
payment hub solutions in Asia
A report from Kapronasia
Table of Contents
Introduction 3
Industry Trends 4
Comparing Leading Providers 8
ACI 10
Finastra 13
FIS 15
Infosys 17
Oracle 20
Pelican 23
TCS 26
Temenos 29
Kapronasia Competitive Index 32
Sidebar: BaaS - Banking as a Service 33
Conclusions 34
Methodology
To analyse the capabilities of the payment hub solutions in the marketplace, Kapronasia
invited 14 firms to participate in this study. Firms were asked to provide written
descriptions of their payment solutions as well as solution details around particular
measurements. In addition, Kapronasia asked for client-level details about current
deployments in the Asia region. Of the 14 vendors contacted, around 12 had payment
hub solution offerings for Asia and, of those, 8 agreed to participate in the study. In
addition to written responses, Kapronasia spoke with each of the vendors to obtain
more detail about the solutions.
2018 Asia Pacific Payment Hub Vendor Landscape Page 2

Introduction
As the financial industry continues to grow and innovate, financial institutions face
an uphill battle to keep up with the rapid pace of change, especially in the payments
segment.
Customers are becoming more demanding and looking for faster and cheaper
payment services. Continued innovation around real-time and cross-border real-
time payments means new channels to incorporate into existing platforms. New
technologies such as NFC & QR codes are also driving entirely new forms of payment,
resulting in an even more significant integration challenge for financial institutions. All
of that does not even consider meeting compliance requirements as regulators push
for an ever-increasing amount of data and insight on KYC/AML, and data protection
in general.
With such a quickly-evolving payment environment, banks may find it difficult to

follow as they are often saddled with legacy payment infrastructure. Launching a
new payment channel can result in significant additional coding and inconsistent
work-flows among payment systems, both of which can create a large amount of
manual work and cost.
Increasingly, we are seeing vendors offering payment hub solutions to help Asia's
banks deal with their legacy challenges and prepare for the future, while at the same
time, saving cost and improving efficiency. As nearly every large technology vendor
has a payment hub solution, it can often be difficult for a bank to pick one that meets
their needs.
With this in mind, Kapronasia is pleased to present our first overview of the Asia
Pacific Payment Hub Vendor landscape. In this report, we look at the main payment
hub offerings available in Asia Pacific, summarize their key features, and compare
and contrast the platforms through an evaluation matrix. This report intends to
help financial institutions make a payment hub selection as well as to help vendors
benchmark their solutions against the competition.
We hope you find this report as enjoyable to read as it was for us to research.
kapron
ASIA

Industry Trends
In addition to asking specific questions around their payment hub solutions, we asked
vendors to give us their thoughts on some of the key trends and issues in Asia's financial,
and more specifically, payments industry.
The Digitization of Asia

One of the clear trends in nearly all of the responses we received was the speed of digitization
in Asia. In 2017, Asia had 1.9 billion Internet users, which account for about half of the
world’s digital population. By 2025, the number of smart-phone users in Asia will reach 2
billion.
Many respondents indicated that this phenomenal rate of digital adoption is one of Asia
Pacific's key differentiators and permeates nearly every aspect of the Asian financial industry.
Improving Internet coverage and speeds as well as more affordable devices, especially in
countries like China, are enabling a shift where both individual and corporate customers are
rapidly adopting digital, and demanding more digital products from financial institutions.
Some countries like China, Australia, India, South Korea, and Japan are ahead in this
transition. In 2016, Australia saw the most substantial penetration of contactless payments
in the region with 54% people having made a contactless transaction, Singapore came
second and Taiwan third.
Respondents felt that Asia was a leader in fintech, especially China, with its massive fintech
valuations, penetration, and transaction value. But across the region, the fintech push from
financial centers like Japan, Singapore, and Hong Kong was also noted. There was also a
feeling that technology from China will ‘trickle’ down to other markets, especially QR codes,
which present a hardware-agnostic approach to mobile payments.
Many respondents also noted the shift away from cash across the region. China and India
are leading in this regard with Chinese consumers' adoption of digital payments and India's
push towards demonetization. In these countries, customer demands are also much more
advanced as is the solution landscape, e.g. multiple e-wallet solutions in China, NPCI
initiatives in India like UPI, BHIM, etc., all in response to customers demand for cashless
solutions.
Regional Coordination
In regulation, Asia was seen as a follower with the U.S. and Europe taking the lead. Most of
the regulatory challenges that Asian financial institutions face are those that come ex-Asia
(e.g., MiFIDII, FATCA). In some cases, however, respondents felt that regulation could lead
innovation, such as in the case of PSD2, although the consensus was that Asia could do it
on its own without needing a specific or coordinated regulatory push.
The lack of consistent coordination across the region was also cited as a challenge. With
varying regulations, banks need to take a country by country approach to compliance.
Similarly with APIs and Open banking; each market seems to be setting its own standards,
so a particular and nuanced approach is required.
The exception to this trend is ASEAN, where efforts like the Asian Payments Network (APN)
and cross-border payment initiatives, such as the one between Singapore and Thailand will
increase sub-regional coordination.

Building Mature Solutions
More mature payments markets such as Australia and New Zealand are leading the
transformation in enterprise payments. Growth markets like Singapore, Hong Kong,
Malaysia, Indonesia, India are going through an “APIfication” as they modernize their
transactional banking, payments and cash management capabilities, driven by the
need to enhance the customer experience.
Across the market, respondents saw increased adoption of the ISO20022 standards
for payments clearing and settlement. The general payment system modernization
across the region also sets the stage for more value-added services such as request
to pay, direct access by non-bank participants, and additional overlay services.
Respondents also felt that Asia had a broader focus on alternative and new
technologies like blockchain and AI, and had more obvious use cases including
proof of concepts and pilot implementations.
Payment Hub Development in Asia

In the early 2000’s, banks in Europe and North America started to focus on developing
payment hubs, and around 2010, banks in Asia began to follow suit.
The drivers to move to a payment hub today are not entirely different than they were
a decade ago. An increasingly fickle customer base is demanding more from their
banks, which are often saddled with legacy infrastructure. This lack of technology
agility can constrain banks as they expand regionally, connect into payment systems
or try to launch new products and services. Finally, different regulations and rising
data requirements coupled with increasing labor costs are forcing banks to take a
hard look at how they are handling payments.
Launching a payment hub enables a bank to consolidate and converge multiple

different payment types as well as provides the basis for an ecosystem to bring
together customers from all segments to achieve greater operational efficiency and
effectiveness. It also better prepares the organization to take advantage of real-time
payments to provide overlay services as well as prepare for API and Open banking
initiatives.
While there has been incremental, opportunistic progress toward payment hub
architecture in all markets, the roll-out of a real-time payment scheme in a given
country seems to be a catalyst to be more aggressive in rationalizing payment silos,
to better capitalize on the substantial investment involved.

Real-time Payments
Real-time payments were cited as the most critical payment trend in the Asian
financial industry as banks across the region race to prepare themselves for instant
payments. Asian countries could save more than US$7 billion in the next five years
by adopting digital real-time payments and eliminating cheques; with India being the
largest beneficiary. Across the globe, there are 28 national level ISO 20022 initiatives
with ten already live, of which eight are in Asia.
As customers expect faster money and improved information flow, a hub solution
to enable real-time/instant payments is at the forefront of bank CIOs’ and payment
architects’ thinking. There is a need for an enterprise real-time hub for service
orchestration and message transformation with various back-office legacy systems –
the challenges of aging legacy systems require a hub that can integrate new payment
channels without heavy investment on replacement legacy systems, but that can
also respond to the need for greater speed to market.
Open API
Europe’s PSD2 has been a significant driver in that region’s shift towards Open and
API banking. In Asia, there is no specific regulatory push that is moving banks in that
direction, but many respondents felt that the shift was inevitable.
To deliver a connected customer experience, banks need to have open APIs that can
seamlessly pull together real-time information from the back end. However, many
banks are stuck with fragmented and inflexible back-end systems that prevent them
from delivering comprehensive, high-quality, real-time information through open APIs.
Payment hubs often support standard APIs including feeder channel payment/file
initiation (and response/update), account lookups, compliance checks, balance
checks, postings, FX rate, notifications, and clearing messages. More also now
support web service calls from channels, like payment status inquiry, fee calculation,
payment validation, and more.
In many cases, banks are looking at re-engineering their basic infrastructure to create
unified systems more fully aligned with the needs of open APIs. This requirement is
helping to fuel the adoption of payments hubs, which bring together the handling
of all types of payments on a single platform. Payment hubs thereby help unify
fragmented legacy and siloed systems while securing and future-proofing one of the
most critical parts of the bank.
In Asia, where open banking is driven by demand and competition rather than
regulation, we see that the implementation of payment hubs and open banking APIs
tend to go hand in hand while the influx of new Fintechs and central bank policies
around open banking fuel innovation around APIs.

Key Areas of Future Growth in Asia Pacific
This was a bit of a tricky question, as respondents had good arguments for nearly
every Asia Pacific country growing in the future.
China of course was seen as the key growth driver in the region, and this was not
expected to change. With the world’s 2nd largest economy, an incredible level of
digitization and existing payment and banking infrastructure, the country is poised to
continue its economic and fintech leadership going forward.
Developed economies like Australia and Singapore and emerging markets such as
China, Indonesia, and India are moving towards cashless, in turn, reducing friction in
the overall economy and encouraging consumers to spend more.
ASEAN’s integration and focus on real-time and cross-border payments will be a

crucial driver there as well but is not without challenges. For example in Thailand,
upgrading to PromptPay has worked, but the use of ISO20022 has stalled because
impact to internal systems is significant. In Malaysia, some banks appear to be
doing tactical solutions for RPP, but this process has emphasized the need for better
payments infrastructure and banks have found little time during the RPP migration to
progress this in any significant way.
In short, respondents saw opportunities across the region. The key drivers for all
these growth areas fell into a few areas:
• Growth in digital infrastructure, adoption of real-time payments
• API & Open banking initiatives
• Emergence of alternate payment types
• Vibrant Fintech ecosystems
• Supportive regulators and policies

Comparing Leading Providers
To compare the Payment Hub vendors for this report, the questionnaires we sent
vendors focused on a few important aspects of their solutions:
• On-Premise/Cloud – We asked each vendor about the readiness of their
solution for on-premise, hosted / cloud solutions, especially in the APAC
region. Most vendors provide both methods, and clients typically choose
based on their size.
• Implementation – In this section we attempted to capture any
implementation challenges and compare the time needed for a typical
implementation. Most banks can switch to a new payment hub completely
within one year.
• Reliability – The reliability of a payment hub is critical for its users. We
asked vendors how they ensure 100% uptime with no failures.
• New Tech – AI and blockchain are two potential areas of technology
development for payment hubs. We looked at how vendors are looking at
new technologies, even if still in testing.
• Liquidity/Risk Management – For payment or transaction solutions,
liquidity/risk management is important for banks as part of their overall
operations Such value adds can be an additional selling points for
vendors.
• Agility – We asked the vendors how quickly they react to market or
regulatory changes. The faster a new channel can be added or a system
updated, the better a payment hub solution can serve a bank's needs.
• Data Management – Transaction data is considered a valuable asset for
banks. To best leverage data, payment hubs should be able to store and
transfer data according to different requests from their customers.
• Security – Banks are always under tight regulation and security is one
major concern. Issues related to security may lead to a significant amount
of monetary and reputation damage for banks, so the payment hub
solution must have sufficient security controls in place to help customers
reduce risk.
• Team Support – After sales support is one major value-add for banks.
We asked the vendors about the size of their team, types of support they
provide, and the flexibility of the support including whether the support
team is local or otherwise.
• Future Development – To measure the future outlook for the various
payment hub solutions, we considered the investment they have put in
R&D and their future roadmap for 2018.
Of course in measuring all of these different characteristics of payment hubs, the
analysis can be quite subjective; we have tried to stay as objective as possible.

Payment Hub Comparison Index
On-Premises / Cloud
Future Development
Data Management
New Technology
Implementation
Liquidity / Risk
Team Support
Management
Reliability
Security
Agility
ACI          
Finastra          
FIS          
Finacle          
Oracle          
Pelican          
TCS          
Temenos          
Legend:
- High
 - Intermediate
- Low
 - Present, but difficult to compare

Vendor Profile:
ACI
Brief Introduction
ACI’s UP Real-time Payments Solution (RTPS) is architected from the ground up as
a real-time payment hub to meet low latency requirements, as well as the need to be
continuously available, even during upgrades. ACI focuses on serviceability, security,
scalability, globality and customer experience. RTPS provides flexible capacity, and
payment routing options and its tools and testing services aim to enable the rapid
development of new services. The RTPS is also available with pre-integrated security
intelligence solutions to help protect banks from fraud threats.
Key product features

Deployment Model: On-premise/Cloud
ACI’s real-time payment hub solution is offered on-premise globally. ACI also provides
platform services using ACI’s regional data centers in Europe and North America and
trusted third-party data centers in Asia Pacific and other regions.
Implementation
Implementation time varies depending on customer requirements. A new payment
clearing channel, or a gateway for an existing payment channel, would typically
take three to four months. However, when a bank needs to redesign its payment
infrastructure at a strategic level, the project may take eight months to a year.
Complete system implementations are structured into smaller projects which are
then run in parallel where possible. Typically, the legacy system is either turned off
at the point of go-live of the RTPS hub or is quickly eliminated during a multi-phase
migration of traffic off the legacy system. Secondary systems that were not the
immediate driver for the project are then replaced opportunistically, or in some cases
retained but integrated within the hub services and orchestration.
Reliability
ACI’s global process engines have a track-record for resiliency and ACI provides
guaranteed service levels, data integrity, and audit trails for every transaction; ACI
handles approximatively 67% of the US FedWire traffic. The development of ACI’s
RTPS has always focused on resilience, availability, reliability and fault tolerance
and offers a hot offsite for disaster recovery. The system resilience relies on the
infrastructure platform capabilities, but also the automated response to system,
infrastructure/network issues or complete site loss.
New Technology Development

ACI has put continued efforts into R&D. AI and machine learning are already being
used in the ACI’s fraud management solutions. For example, Westpac New Zealand
is pushing towards real-time anti-fraud with ACI’s Proactive Risk Manager solution.
ACI is also testing blockchain technology for specific applications including cross-
border payments although there are no blockchain based systems in production
usage yet.

Liquidity/risk management enablement
ACI’s RTPS hub can help banks manage a global treasury view of liquidity positions
across all currencies and central banks. The solution includes configurable services
to address various risks including fund control across customer and Vostro account
positions, accounts flagged for risk, sanctions, and fraud risks.
Agility
When there are changes in regulations, mandates, and standards, ACI will consult
with banks to deliver required changes to the rules in use on the platform, as well
as consider potential impact beyond the payment hub itself. For new payment
channels, if based on SWIFT or ISO standards, there is no development lead time,
just analysis, configuration, and testing. In other cases, it may take a development
cycle. Leveraging the capabilities of the real-time framework, customers often use
ACI solutions to develop Agile Methodologies within their organizations to reduce
development cycles and shift away from Waterfall methodologies.
Data management
All transaction data is controlled in ACI’s RTPS hub and data can be delivered to
other applications and big data warehouses depending on customer requirements
which are handled in the configuration layer of the solution. As a payment hub, the
RTPS does not provide data mining and data analysis on its platform, but data can
be output to external data analysis engines.
Security
ACI has a professional team that sets requirements and security standards across all
ACI products. There are many security features including static scans of all software
on a continual basis, and before any software shipment, dynamic intrusion testing,
and monitoring of, and adherence to, best practices across industries to proactively
protect against cyber-attacks.
Price
The pricing structure of the RTPS includes license fees, which are according to
capacity requirements, support fees for maintenance, and hosted solutions which
are transaction priced. Depending on each customer’s business, ACI works on the
fee structure to align with each request.
Team support
ACI’s service and support team consists of around 100 geographically distributed
staff across Asia. ACI also provides support through a sub-contract with Pactera, a
key ACI support partner in Asia with deep experience helping support ACI customers
throughout the region.
Most customers use ACI’s support services, but some opt for self-support with
minimal ACI consulting and project services. ACI also provides a range of computer-

based self-paced courses, as well as customized on-site training. ACI’s services
focus on specialized support of ACI’s products. ACI works with its own IT partners,
as well as bank’s IT and chosen integration companies, to integrate ACI’s products
into the bank’s environment. ACI’s team can additionally advise banks on the process
of optimizing payment products and pricing.
Roadmap 2018
ACI’s UP Real-Time Payments Solution supports global banks with branches across
the world operating in different time zones. Multi-currency accounting models are
built on rule-based processes to address transactions that span branches. RTPS
is also SWIFT gpi certified with a range of solutions for processing, integration with
existing payment engines, and access to the SWIFT Data Tracker database. In the
near future, ACI plans to enhance existing product capabilities for foreign exchange
and ACH payments.

Vendor Profile:
Finastra
Brief Introduction
The Finastra Payment Hub solution (FGPP) supports all payment types for multiple
countries on one instance with a breadth and depth of functionality already built
into the product. Customers can choose in-house or cloud deployment and can
take the system and deploy as is, or make business configuration changes directly
themselves, which can make the onboarding process easier.

The Finastra Payment Hub provides both on-premise and cloud solutions for
customers to choose from depending on the bank’s size and type of business.
Smaller banks tend to be more interested in SaaS deployment. Most major banks
use on-premise hosting but are increasingly exploring cloud solutions. Customers
can also choose private cloud or SaaS. For private cloud, a bank can deploy their
own instance and configurations. The SaaS option, where multiple entities are hosted
on the same instance, is only available in the US currently but should be available in
Asia in late 2019.
Reliability
In the U.S., banks use the FGPP to process more than 20% of the daily Fedwire
payment volume. FGPP processes UK Faster Payments for the bank with the largest
volume in the UK, and so reliability is critical and something that Finastra invests
in significantly. The platform claims 24/7 availability, security, performance, SLA
processing times, and zero downtime for upgrades, etc..

The payment hub solution has a self-learning capability. Past repairs can be evaluated
by the system, and when the same transaction is seen in the future, auto repair
can be done to the payment. This process can also be reviewed before settlement
until the user is comfortable with complete automated system. Through Open APIs
or web services, the platform can accept payments initiated by AI and the system
can interface with 3rd party providers of blockchain (DLT) solutions; Finastra has
participated in a joint pilot project with a major European bank and Ripple.

As part of Finastra’s core system (separate licensed module), there is a GLRM
(Global Liquidity and Risk Module) embedded, which includes settlement accounts,
Nostro accounts, Vostro and agency bank accounts. As designed, the payment
hub solution is not only able to track/monitor these accounts, but to be able to
manage the account flows. It provides controls on all outward RTGS (Real Time
Gross Settlement) if any issues. The liquidity module can also provide a projected
position for the end of the day or future dates.

Agility
Finastra monitors the latest industry developments from both participation in events
and forums, as well as interactions with banks to stay abreast of the latest trends
and industry requirements. The Finastra payment hub solution provides annual
maintenance and the platform has a client-configurable set of business rules and
configuration which allows the bank to control how they want the system to operate.
Standard industry payment channels can be added quickly, although non-standard
industry channels may take additional implementation time.
Data management
The FGPP stores transaction data for each payment in over 2000 fields. A notification
message is published when the platform pushes the data to the data warehouse,
MIS, or other systems. There is also an optional near real-time data repository system
which rationalizes the data structures from XML to more ‘reporting tool friendly’
structures and formats. Banks can use tools such as Oracle BI, Cognos, Crystal
Report Writer, and Microsoft Power BI, etc, to extract data or build additional reports.
Security
A variety of security capabilities are built into the FGPP solution, including database,
application, and integration security. Finastra runs regular penetration testing and all
user and system actions are audit trailed, with the user ID recorded. Business rule
modifications are also recorded.
Price
Finastra offers a subscription-based pricing model for both on-premise and cloud
customers with a certain level of flexibility. It takes into account bank size, transaction
volumes, and types of payments processed (batch/RTGS/Cross-Border/Real-Time).
Team support
As part of annual maintenance, Finastra provides different support options for
banks through a mix of onsite and offsite options, often supported through system
integration partners. Besides global 24/7/365 support desks, Finastra also has an
onsite implementation team which offers a mix of local and global resources. Most
customers are reasonably self-sufficient and do not require onsite support once the
platform has gone live and stabilized. Training for the FGPP covers train the trainer
courses to deep technical implementation and support courses, as well as specific
courses by banks’ requirements.
Roadmap 2018
To provide a holistic solution to customers, Finastra keeps driving future development.
The 2018 roadmap includes different themes: Clearing Expansion – add support for
newer clearing channels, Regulatory Changes – support ongoing regulatory changes
to keep compliant, Strengthening the Product – multiple new technical and functional
features for further expectations and requirements from customers, Innovation –
deploying the leading technology in the industry.

Vendor Profile:
FIS
Brief Introduction
FIS has global payment implementations and in Asia, is focusing on Thailand,
Malaysia, Vietnam, Indonesia and the Philippines. Compared to other players in the
market, the FIS payment hub solution is ISO20022 native and API driven. It uses
a multi-instance deployment model and emphasizes handling batch and real-time
payments. Also, with the help of BPMN2, it is graphically business process driven.

FIS’s payment hub solution supports both cloud and on-premises models. For most
large banks, on-premises deployments usually are their first choice. To give more
choice for smaller Tier 1 and Tier 2 banks in Europe, FIS have launched cloud-based
services, focusing on Real Time payments.
Implementation
Implementation time depends on the complexity of the deployment and may take
between nine to twelve months for the whole process. Some banks may find it easier
and shorter. For example, one of FIS’s clients in Thailand spent only four months to
finish the transformation. Usually, banks will switch to the FIS payment hub solution
as soon as the system goes live.
Reliability
To ensure the reliability of the payment hub, FIS operates a disaster recovery plan
with each implementation and focuses on 24/7 uptime. The payment hub system is
highly scalable both horizontally and vertically and failovers happen in seconds.

The FIS payment hub solution does not apply any AI/Machine Learning technology
yet, but the company is looking at how they could incorporate related technology
into the platform in the future. Although the FIS payment hub is not developed on
blockchain technology, it has already built a connector to the Ripple network which is
being implemented at two customer sites. In addition, it has recently adopted an open
source graphical Business Process Management (BPM) engine and incorporated a
new in-house built graphical Business Rules engine

As moving real-time is the future of payments, FIS believes it is essential that payment
hubs provide real time liquidity monitoring and as such, has included that functionality
in their payment hub solution since 2016.

Agility
The layered architecture of the FIS payment hub allows the platform to update all
industry rulebooks without affecting customer-specific functions. As the system is
API driven, connecting in new payment channels does not involve changing the core
of the system. Standard channels can be connected rapidly. In specific cases, when
a new API is required, FIS can provide a new API, typically within four weeks.
Data management
The transaction data acquired on the FIS payment hub is flexible and can be modified
depending on needs. The platform supports any incoming payment format and in
turn, transfers it to the target system in any form. Also, for data analysis purpose,
when there is a requirement, FIS’ platform can stream data to a bank’s external data
analytics system as needed.
Security
As security is critical for banks, the FIS payment hub solution utilizes a number of
techniques to protect its software including code scans before release. In operational
environments, the platform typically sits behind a number of firewalls and is not
directly exposed to outside intrusions. The banks’ security systems can also protect
the platform and all sensitive data in the database can be optionally encrypted. There
is also an audit function on FIS’ payment hub solution for payment auditing purposes.
Price
FIS adopted a building block licensing model. Customers must pay a license fee
for the core payment hub solution and the rest will be based on the optional license
support for each of the functional modules such as SEPA, SWIFT, SCinst, RPP
(Malaysia), NPP (Australia), NACHA, etc.. The prices also vary depending on whether
the bank is a Tier 1, 2, or 3 bank. As a result, the price can be variable.
Team support
Within the 10,000 total FIS employees around Asia, 600 of them are directly associated
with the implementation and after-sales support of its products. Most customers
choose to use FIS’ maintenance services for their payment hub solutions due to the
combined consideration of efficiency, cost, and reliability. FIS can also provide client
support as a tech partner in other areas such as DB setup and configuration, HW
configuration and SW stack support.
Roadmap 2018
The FIS payment hub solution is continually evolving. In the near future, the company
is building a New Automated Accounting Framework for rapid integration into a
bank’s Core Banking System, which means it can provide more products for banks
in more business areas besides payment. FIS is also developing support for the
Malaysia RPP and SWIFT's GPI.

Vendor Profile:
Infosys Finacle
Brief Introduction
The Infosys Finacle Payment platform is designed leveraging ISO 20022 standards
as an enterprise payment service hub. The solution is SWIFT certified and is used by
banks across the globe in Asia Pacific, the Middle East, Europe and the US. Besides
popular features such as open APIs, analytics dashboards, robotic automation tools,
it has a pre-built system around Infosys Finacle APIs to drive payments innovation. The
extended capabilities are offered through Infosys Finacle AppCenter – a marketplace
for partner solutions. The solution is designed to run on multiple platforms and with
several database options through a Fully Service Oriented Multi-layered architecture.

The Infosys Finacle Payment platforrm supports all types of deployment. The solution
has been deployed for clients both on-premise and hosted/cloud. While large banks
usually prefer an on-premise solution, the company is experiencing an increased
demand for private cloud. Smaller banks are moving towards SaaS offerings.
Implementation
The implementation time of the Infosys Finacle payment hub varies based on a
bank’s requirements and change management readiness. In general, for a single
payment scheme implementation, it takes eight to twelve weeks. Based on banks’
differing implementation strategies, they may run the legacy system until the last
scheme is transferred, especially when banks are doing progressive implementation
wherein multiple payment schemes from the legacy systems are being transitioned
to the platform. This is typically the preferred method for most Infosys Finacle clients.
The product provides pre-configured schemes, ISO 20022 based templates and
message mapping infrastructure to potentially help reduce time to market.
Reliability
The Infosys Finacle payment hub uses standard interface protocols/message
formats, which provides high performance and availability. It offers resilience based
on both “application flexibility and application elasticity.” The application flexibility is
achieved by leveraging rule-based configuration capabilities and BPM support. The
solution is scalable and benchmarked to process over 75 million payments per hour
or over 21,000 payments per second, which has been validated by EY.

Infosys has developed robotic process automation with machine learning capabilities.
The product offers a NLP powered chatbot-based solution to process payment
transactions. The company also provides a machine learning based payments fraud
management solution with outside partners. Infosys Finacle also offers a blockchain
based enterprise solution called Payments Connect which helps banks simplify global
payments processes. The solution helps digitize the payments business processes,
while connecting banks, payment providers and corporates on a single distributed,
trusted and shared network.

The Infosys Finacle Payment hub provides the platform for banks to monitor and
maintain intraday liquidity. For corporate clients, the product offers liquidity/cash
management through the Infosys Finacle Liquidity Management Solution. Customer
limits can be parameterized in Infosys Finacle Payments for risk management. The
solution also offers standard APIs for AML, OFAC and Fraud Detection. The solution
is also designed to interface with enterprise-level liquidity and risk management
solutions.
Agility
The Infosys Finacle Payment hub is built from the ground-up on ISO 20022 and
supports emerging payment schemes globally. Product architecture has a layered
approach to build functionality for the base product, localization and customization.
This layered architecture provides a clear segregation of base product, regional/local
specific functionality and bank specific extensions. Without rewriting the base layer,
the architecture increases efficiency when there is a need to update the system
with new regulations or new payment channels. Infosys Finacle also offers a pre-
configured, pre-integrated reference model to provide for rapid implementation. The
banking platform’s product configurator allows banks to define new products as well
as to copy an existing product, modify it, and launch a new product. The solution
also supports widely used corporate formats based on CGI guidelines.
Data management
The Infosys Finacle Payment solution suite is flexibly designed to collect data for
analytical processing and reporting. Data can be shared in multiple formats based on
the requirement of the receiving system. It also offers Data Lake capability, which is
deployed on Hadoop (HDFS). Infosys Finacle data is pre-integrated into Finacle Data
Lake (FDL) using pre-built programs. Additionally, the platform offers embedded
analytical capabilities as well as pre-built analytical dashboards. Business users can
design their own interactive experiences based on their roles and leverage business
intelligence to make informed decisions.
Security
Infosys Finacle has been certified by an external security assessment agency (EY)
for compliance with security-centric standards like ISO 27001/27002, COBIT,
and MAS, etc. Infosys Finacle also has institutionalized processes for conducting
external audits and studies periodically to ensure security. Infosys Finacle follows
security requirement analysis, compliance to secure design principles, secure coding
practices and secure code analysis using automated standard tools and security
penetration testing, etc.

Price
Infosys Finacle pricing is broadly categorized into license fees, implementation fees,
customization fees, and Annual Technical Support (ATS) fees. Licensing for the
payments solution is based on the following: number of payment schemes, payment
volume, payment value, number of payment products, number of customer profiles.
It allows banks to pay for only specific components and modules that are most
suited for their business model.
Team support
EdgeVerve has a strong implementation team for Infosys Finacle solutions covering
Asia and the rest of the world. Also, the company partners with various regional
partners including WIPRO, CAS Trading, Multipolar technologies, HPT and TimCorp,
among others in Asia. There are 3 levels of support. Customers normally have their
own internal L1 support teams who are trained on Infosys Finacle. L2 and L3 support
from EdgeVerve and partners are available to all clients externally. EdgeVerve also
offers a preventive maintenance service called Infosys Finacle Assure. Infosys Finacle
Assure monitors a bank’s IT systems 24/7 through an offshore command center to
identify and prevent potential issues before they can cause any disruption. Infosys
Finacle's User Education Team provides training to clients’ employees covering
different programs. Apart from the above support services, Infosys Finacle also offers
a broad range of services to banks across the implementation life cycle.
Roadmap 2018
For future development, EdgeVerve plans to enhance priority based payment
processing and embedded analytics capabilities, as well as its blockchain solution
for payments. The company will keep updating Infosys Finacle's localization layer
for followed markets with industry initiatives and regulatory changes and pre-
integration for major fintech platforms.

Vendor Profile:
Oracle
Brief introduction
The Oracle Banking Payments platform is designed to help banks transform their
payment infrastructure and features comprehensive transaction processing support
for the payment needs of retail and corporate customers. Besides real-time payment
settlement, the application also allows for faster reconciliation and instant credit
availability while providing better financial control for banks and companies. The
payment system is built on the ISO20022 messaging framework, which allows the
solution to realize STP with lower cost and less complexity.

Oracle offers its customers a number of options for application deployment, which
include on-premise, cloud at customer, IaaS, PaaS and SaaS, and a range of
managed cloud services. The Oracle Banking Payment platform itself is available on
on-premise, cloud at customer, IaaS, PaaS, and managed cloud alternatives.
Implementation
The platform uses standard APIs to ensure quick deployment and migration.
Implementation timeframes depend on the number of payment networks that need
to be migrated. Typically, establishing a basic infrastructure can take between five
to six months. Once a clearing network is migrated, support for additional networks
can be enabled in less than a month depending on the complexity. In most cases,
Oracles’ clients run a parallel system and then transition to the new payments hub
progressively either on a network by network basis or in a big bang transition. The
choices are largely driven by the number of underlying applications which need to be
integrated to the new payments architecture.
Reliability
The solution is built on an ISO 20022 model and is based off of an industry standard and
proven design. The architecture operates across platforms and performs identically
regardless of the choice of hardware, operating system, and third-party tools and is
structured to scale well without compromising performance. The payment solution
also provides an open application integration framework for seamless interoperability
with existing bank transaction processing systems.

Oracle is continually investing in technology development to stay ahead of the latest
payment trends. Machine learning is embedded in the platform architecture to assist
customers across different functions. The company has also invested in blockchain
development, focusing on automation and cost reduction. A ready to use blockchain
adapter enables banks to seamlessly connect to the Oracle application. Additionally,
Oracle also provides a blockchain environment on the cloud as the 'Oracle Blockchain
Cloud Service.'

Oracle provides enterprise-class components to enable banks to standardize each
business area to one single global application for each key capability. Although the
Oracle Banking Payment solution does not include functions to support banks for
liquidity and risk management within the payment hub, it provides other separate
solutions for those requests.
Agility
Oracle Banking Payments incorporates industry-standard constructs to enable
product agility. This agility is enabled through a comprehensive extensibility framework.
The building blocks of the framework along with Oracle’s approach are as below:
Pattern Oracle's Approach

Framework Extensibility framework
Configuration files XML/ Text-based configuration files
Extension using scripts Javascript-based hooks for UI layer
extensions
User-specific extension of software Callouts based on release type
package
User-defined events Messaging architecture to define new
XML messages
Oracle Banking Payment’s modular architecture ensures banks can adapt to any new
regulatory requirements or payment methods without altering the underlying system.
It also provides payment functional APIs for banks to integrate. At the same time,
Oracle monitors regulation updates through continual research and other channels.
Data management
The data on the Oracle Banking Payments platform can be extracted and deployed
across existing analytics and data warehouse engines built on a similar framework.
The solution uses data analytics to improve the efficiency of transactions such as
intelligent repair based on historic data. Due to the fact that it is built on an ISO 20022
data model framework, banks can seamlessly choose to integrate with existing data
analytics platforms for more analysis.
Security
Oracle develops products under its OSSA (Oracle Software Security Assurance)
standards. The Oracle Banking Payment platform has an inbuilt audit feature and
has the ability to trace a payment at different stages of processing such as input,
modifications and operations queues. The application also supports dual control
methodology. Every operation performed has to be authorized by another user
with the requisite rights. A detailed audit trail is maintained by the system on all
the activities performed on the payment from the moment of login. The solution
provides for AML reports including transactions above a certain amount, cumulative
transaction amounts in a period, number of transactions etc.

Price
Oracles’ pricing construct is based on product processors, network messaging, and
connectivity. It offers perpetual or one to five years term licenses. Normally banks can
have 2 options:
• Option 1: Buyers can opt to procure only the processor components
without the network messaging and connectivity components
• Option 2: Buyers can opt to procure the entire stack of payment types
along with network messaging and connectivity or procure point solutions
(such as just cross-border payments product processor)
Team support
Oracle has over 500 implementations and support staff deployed across Asia in
addition to the main development teams in India. Clients who have opted for Oracle
support get access to various facilities such as a 24*7 help-desk, assistance in
improving system availability, operational recommendations, outrages/degradation
prediction, real-time monitoring, trend analysis, and techno-functional audits.
Oracle also provides user trainings as needed and tailored to specific end user needs.
Besides training, Oracle also provides other business related support for its clients.
Roadmap 2018
The general themes pertaining to the Oracle Banking Payment solution future
development include:
• Build and extend the platform for global payment networks
• Support multiple real-time schemes in an integrated platform
• Continued investments in supporting existing and emerging regulatory and
compliance requirements
• Add and enhance payment-specific APIs
• Leverage AI and machine learning
• Support Payments on Cloud
• Monetize payments data for evolving business models

Vendor Profile:
Pelican
Brief Introduction
The Pelican Payment Hub solution is a modular platform leveraging a variety of
technologies and interfaces including APIs and Webservices. It contains real time
payments, sanctions and financial crime compliance modules with a strong emphasis
on AI/ML and NLP. The platform also offers format agnostic intelligent payment
management, file management, any format to any other format translation, payment
enrichment, intelligent content-based routing, and multi-institution and multi-location
configurable processing workflow. The solution is integrated with PelicanSecure –
Pelican’s financial crime compliance solution, meaning customers can use Pelican’s
payments hub leveraging the compliance filter which would take care of sanctions
filtering, payments fraud prevention and trade based money laundering.

Pelican offers both, on-premise as well as cloud/hosted, deployment options;
customers can choose either based on their preference. As an industry trend,
new and smaller banks prefer cloud/hosted options due to lower cost and higher
efficiency. However, most incumbents tend to still prefer the traditional on-premise
model mostly based on security and privacy concerns.
Implementation
Time for implementing the entire Pelican Payment Hub varies based on complexity
involved and whether the client chooses a phased or big bang approach. If there is
not a significant amount of complexity, the system can be deployed in as short as
12 to 15 weeks for a simple solution configuration. Adding new payment channels,
formats or workflows will take a few days to weeks to configure.
Reliability
The Pelican Payment Hub solution is designed such that it does not lose any
messages nor process duplicates. The configuration is active with high availability,
which ensures the system supports 24/7/365 operation.

AI and NLP have been an integral part of the Pelican platform since its inception
and are part of all Pelican products, including the Payment Hub. Leveraging these
new technologies, the Pelican Payment Hub is able to increase processing efficiency
– enhancing STP and automating routing. While Blockchain is part of the Pelican
roadmap, the underlying communication mechanism is often an API, of which Pelican
can support a diverse range.
Pelican is a technical service provider for multiple instant payments schemes around
the world, so customers can also leverage from real-time payments functionality, in
addition to all of the other transaction types the platform currently supports.

Currently Pelican is developing its cash management and liquidity management
modules for the payment hub solution. The extra functions will be available as optional
add-on modules at a later date. Also, Pelican does not offer risk management
products at this point. The payment hub system can integrate with banks’ own
solutions or other third-party components.
Agility
Pelican Payment Hub has a modular architecture which provides the ability to quickly
add and remove plug and play components to adapt to changing requirements.
The company monitors any changes related to standards, industry, and regulatory
updates and adjust the product accordingly. It is also accredited annually by SWIFT
to inter-operate with the SWIFT Alliance suite. To integrate with a back office to
receive payment messages, Pelican’s system normally does not need to develop a
new payment channel from scratch and may only take a few minutes to configure
one for integration with a back office. However, if the channel needs a new type of
payment format and/or methods/flow, the process may take a few days or weeks
based on the complexity.
Data management
The Pelican Payment Hub stores all the payment related data as part of the payment
message processing. Based on customer requirements, the system can also store
reference data or access it from external systems using appropriate means. This
data is always in the form provided to Pelican for processing. In addition, Pelican
adheres to the local regulatory requirements for storing data, for example, for EU
clients opting for a cloud/hosted offering, the data is stored within the EU region
and not outside. Comprehensive real-time and analytical dashboards and reports
accessed through the Pelican User Interface applications help banks analyze the
resultant data.
Security
Pelican’s payment process system employs a number of means to secure the
system. For example, user access is regulated through a comprehensive password
policy. It also provides tamper-proofing to all the data it processes. When exchanging
information with external systems, Pelican supports end to end authentication. All
modifications are controlled by maker/checker concept. Authorization levels can
be configured differently based on value of the payment. Pelican also has requisite
ISO and ISAE certifications to ensure infrastructure, application and data security.
Regular Penetration tests are in place for the cloud/hosted offering too.

Price
Pelican offers a flexible pricing structure. For on-premise deployment, there are two
options:
1. CAPEX: The client pays for the license upfront
2. OPEX: The license cost amortized over a 3 or 5 year annual term
For cloud services, Pelican offers a range of volume-based subscription tariffs

with the option to amortize initial fees for the length of the period. After moving to
Pelican Payment Hub solution, some clients will realize return on cost deduction and
performance improvement in 12 to 16 weeks time.
Team support
A team of 25 is dedicated to global implementation and after sales support from
Pelican. As the company provides training for clients after implementation, most
on-premise customers maintain their own systems. The training includes functional,
technical, administration and troubleshooting aspects of the payment hub system.
Further, Pelican is always available to offer assistance and expertise to customers in
any aspects of their payment and message processing journey.
Roadmap 2018
On the payments front following three items are in Pelican’s Product Roadmap for
2018:
• SEPA Inst recalls and investigations
• US RTP (Real Time Payments) development
• STP with self-learning/machine learning
• Enhancement of open API communication layer
• Open API interoperability and conversion

Vendor Profile:
TCS
Brief Introduction
TCS BaNCS for Payments is an integrated multi-entity, multi-currency, multi-product
and Straight Through Processing (STP)-oriented solution that helps institutions
increase operational efficiency and reduce maintenance costs. It is built on a modern
JEE and Service Oriented Architecture and features native ISO 20022 standards,
is cloud-ready, and has open APIs which enables financial institutions to process
multiple payments products on a common platform across countries. It offers support
for various products like high value, low value, and real-time payments. It features
rule-driven payments for retail and corporate customers and for ease of operations
it provides simple “wizards,” which can help customers to improve operational and
monitoring efficiency, in addition to other dashboards and widgets

TCS BaNCS is available in both on-premise and cloud deployment models. For large
and mid-sized banks, on-premise is still the preferred option. However, more small
size banks have started moving towards cloud. TCS already has the experience
in offering cloud-based/SaaS models globally for over 130 institutions including 4
banks who have signed up in TCS’s cloud in the UK. TCS BaNCS also has 8 private
banks in Europe deployed on SaaS.
Implementation
A standard Payments Hub implementation and migration takes around 9-12 months
with all products offerings, i.e., credit transfer, direct debit, and cheques. However,
the implementation schedule is dependent on the complexity of different projects.
Overall, with a transformation plan in place, the process should take no more than
20 - 24 months. TCS’ clients normally switch off their legacy systems in one to three
months after the implementation. During this period, the bank will use the legacy
system for customer enquiries and reconciliation needs, if any. If the bank does not
have a separate legal archive or data warehouse, the duration may last longer.
Reliability
TCS BaNCS achieves resilience and reliability through a combination of features
provided by the application, middleware and infrastructure layers. It ensures minimal
downtime in case of unforeseen failures and supports complete disaster recovery.
The application architecture is layered and componentized. Also, the spread-out
logic helps in fault isolation and faster recovery. The solution components have circuit
breakers implemented to prevent recurring execution of failed business logic. This is
built into integration, batch, reporting and online frameworks to help detect problems
and skip over after configurable number of retries, to allow the rest in the queue to be
processed. Additionally, monitoring facilities are available to help the operations team
and tools to flag up any performance degradation and to be able to take corrective
actions.

AI and ML technologies have already been adopted within TCS BaNCS for processes
like reconciliation. The roadmap also brings machine learning capabilities to increase
STP rates for payments. TCS BaNCS is integrated with Ripple using TCS’ QUARTZ
#DLGateway component which helps in integrating the Payments Application with
any Distributed Ledgers based solutions.

TCS BaNCS for Payments comes with features such as Liquidity Monitoring and
Payment Transaction Limit Management. The product also has the capability to
interface with existing landscape’s liquidity and limit monitoring systems covering
liquidity utilization, tracking, validations and alerting for RTGS payments transaction
flow. Payments Transactions Limits Functionality is a generic framework that can be
used to create immediate, daily, and/or monthly limits based on various transactional
characteristics. Overall Risk management, e.g., account level funds and limits, are
still expected to be retained in core banking which are validated by TCS BaNCS for
Payments while processing the transaction.
Agility
The product management function of the TCS BaNCS platform deals with tracking,
monitoring, analyzing the impacts of regulatory evolutions in specific markets. The
TCS BaNCS product and its roadmap evolve on an on-going basis using market
research, analyst input and customer feedback in consultation with product &
industry experts. If there is a need to initiate a new channel, it normally takes three
steps: channel properties setup (configuration), configuring payment types, and
standard API integration. Also, just in time parameterization allows the product to be
configured for most features and functional scenarios.
Data management
The Analytics solution from TCS BaNCS helps banks to have a better view of their
customers and the ecosystem. The Analytics Data Model has adapters to extract
data from various enterprise systems including both structured and unstructured
data. The solution also comes with pre-configured analytics and descriptive models
that help the banks to understand performance across the enterprise and customers.
The outcome of these models is displayed through digital enterprise apps that provide
contextual insights and enable decision making.
Security
TCS BaNCS follows a secure software development life cycle approach regarding
cybersecurity. The development and operation cycle includes security requirements
elicitation, secure design and programming, automated security testing, vulnerability
assessment, penetration testing, and reviews by external parties. Application security
measures include encrypting and signing the exchanged messages, using TLS and
VPN secured channels for communication, fortifying the application and monitoring
against standard cyber threats. Besides, the audit function on TCS’ platform allows
both function level and user activity level audit. Audit information is stored in encrypted
form to disallow any modification.

Price
For an on-premise implementation, TCS BaNCS offers pricing model comprising initial
license cost, recurring license (annual maintenance cost) and initial implementation
cost. Besides the standard model, TCS provides customers flexible choices based
on business cases. Such models include annual usage fee, combination of base
usage fee and transaction related fee, etc.. All TCS’ clients have recognized cost
reduction or efficiency improvement after implementation. One of the top 3 Private
Sector Banks in India reported 40% gain in NEFT volumes in the recent year. The
bank was also able to launch faster time to market products by themselves.
Team support
TCS BaNCS for Payments has a 460 plus member team working on the product
development, implementation, and after sales support. Most of the clients are using
TCS BaNCS services for support. The company also provides a training program
at the client’s site. The objective of the training is to provide working knowledge to
the operations staff, end users, business teams, and IT Managers responsible for
running the system. TCS offers further support in linked areas based on customers’
needs. The potential areas include: data migration services, delivery installations and
infrastructure maintenance services, independent testing, and business analysis and
system studies, etc.
Roadmap 2018
TCS invests continuously to improve its products. Product Roadmap functionalities
are tracked under separate logical categorizations. The features include Digital,
Markets/Standards/Regulations, Functional Expansion, Market Innovation, Analytics
and other areas. For example, TCS is aiming to expand in new markets like Malaysia,
Mexico etc. There are concrete plans to expand with SWIFT GPI type services and
making the solution future proof with readiness to manage Cryptocurrencies for the
purpose of Payments processing. TCS also has further plans around AI integration.

Vendor Profile:
Temenos
Brief Introduction
The Temenos Payments Hub (TPH) is a universal solution for banks that manages
end-to-end processing of all types of payments, including instant payments. It
adopts a ‘Country Model Bank’ approach where for each country/market, Temenos
creates a software solution that incorporates local regulations, payment clearings and
market practices. This should allow for faster deployment of solutions for any market
and enables banks of any size to centralize their payment flows and automatically
determine the most optimal route to send a payment out while automated exception
handling and message enrichment features to potentially improve straight through
processing (STP) rates.
TPH handles all payment message formats including ISO20022 and its architecture
is component based and fully configuration driven, providing the capability to add
or change processing rules on the fly. A dedicated order management gives banks
flexibility to route some or all payments that are ready for execution to TPH while
the rest can stay with legacy system allowing for a more flexible implementation. It
has role based real-time dashboards available out-of-the-box and supports various
analytics packages to deliver customized dashboards for integrating data. TPH
can also be embedded with Temenos Core Banking to operate as a single solution
("embedded mode") for both on-premise and cloud deployment models. Temenos
was the first vendor to offer such a solution on the cloud.

The TPH can be deployed on-premise or cloud based on a bank’s choice. For banks
tackling an integration, the TPH can be integrated to any chosen core banking
solution and deployed either on-premise or cloud while also integrating other third-
party systems. If banks use the Temenos Core Banking (T24) system, TPH can be
directly embedded with T24 as a single application with no extra integration efforts.
For Temenos global clients, including those in APAC, on-premise still represents the
majority of deployments, although cloud solutions are steadily gaining share.
Implementation
As each bank’s requirements are different, implementation timelines vary and
depend on the implementation strategy chosen (progressive renovation, build and
migrate or big-bang). Temenos’ Country Model Bank approach and proprietary
Clearing Framework within TPH enable rapid development of any local or country
specific payment requirements. For some of Temenos’ customers, a payment hub
implementation can be part of a bigger transformation program and done in a phased
approach (i.e. progressive renovation) to better manage risks and ensure a smooth
implementation.
Reliability
The TPH system is 24/7 compliant, allowing payments to be processed in real-time.
An emphasis is put on making sure the system is capable of continuous operation
under any circumstances, no matter if it is planned downtime for maintenance, or

in the case of failures. The TPH is designed to be high availability, relying on a JEE
Application Server and Database clustering deployment setup that provide seamless
operation in the event of failure of one or more hardware components. In addition,
Temenos transactions are ‘atomic’ in that they are generated in the application as
explicit transactions with boundaries delimited by database commit and rollback.
These instructions to the DBMS, together with the actual update/insert (merge) or
delete statements, ensure that transactions complete successfully or are rolled back.

Temenos has developed methods to auto-repair and enrich payment messages.
The platform can interpret information from multiple fields in incoming messages and
draw information from its proprietary knowledge base in order to repair/correct the
message and add missing information. As a result, STP rates can be improved with
TPH. Also, the TPH’s architecture and open API design makes it easier to integrate
with any third party systems including crypto-currencies and blockchain wallets.
Temenos has configurable off chain components that can effectively communicate
with on-chain components via APIs, and has used this mechanism to integrate with
various Blockchain providers to support:
• Cross Border Payments (Ripple)
• Smart Contracts (Ethereum)
• BitCoin Wallet (Metaco)
• Identity Management Systems (Stratis)

The TPH solution has a number of role based dashboards, nostro account views,
and risk filtering functionality that enable better risk and liquidity management across
the payment life-cycle. For example, configurable workflows can trigger 2 or 4 or 6
eye authorizations based on payment characteristics. The payment cut-off monitor
can display any payment at risk of missing its intended processing timelines. Risk
filtering is based on payment currency and / or counterparty to manage risk positions.
Real-time position management of nostro accounts enables banks to better manage
their liquidity positions (any bank-specific risk requirement can be tailored through
customizations).
Agility
Temenos invests continuously in a comprehensive product roadmap based on
insight from clients, industry forums and research houses, which takes into account
latest regulatory changes and market developments. The product team at Temenos
reviews the roadmap quarterly to ensure TPH and other products are up to date. Due
to TPH’s clearing framework and reusable components, the cost of time to develop
a new payment channel can be as little as 20 man days. The TPH system can be
configured to work in many different ways without having to resort to writing any
program code. The TPH also provides agility through easy integration with third party
solutions based on a rule based stateful workflow.

Data management
All the payment data collected by TPH is available for a client to use, transfer, or
transform into any format. Banks can transfer required payment information to their
business warehouse and apply further analysis from there. The platform also has
a number of pre-defined real-time dashboards and views which can be used for
queries and analysis. In addition, Temenos has an analytics solution which works
seamlessly with TPH to create any specific business intelligence and operational
reporting required by the client or TPH can be connected to nearly any third party
analytical package.
Security
Temenos has designed its products to operate inside the Bank’s security infrastructure
for: 1) Authentication; 2) Access control; 3) Privacy and 4) Non-repudiation. Encryption
can be used at several levels including communication protocol (e.g.: HTTPS, SSL),
database encryption (TDE- Transparent Data Encryption) and disk. Besides the
embedded Security Management System defining and controlling user access, the
TPH has user role management that facilitates interaction with any external identity
management systems. When the TPH solution is implemented on-cloud, the Temenos
Cloud SaaS offering is underpinned by the Microsoft Azure cloud platform, which
helps prevent cyberattacks. Also, each payment within the payment hub creates its
own individual audit trail. All Temenos products are subjected to independent deep
penetration testing to ensure the security and integrity of the software.
Price
Temenos has a flexible pricing structure dependent on the deployment model chosen
by the bank. Pricing is linked to payment modules and features selected, processing
volume, and additional parameters and factors. According to client feedback, the
results on cost reduction and performance improvement is satisfying, although the
exact figures vary due to multiple external factors involved in different projects.
Team support
Temenos has a central support team globally for all of its products and solutions.
In APAC, the additional support team includes 32 members all over the region. As
Temenos’ products are highly configurable, it allows clients to maintain and even
develop new features without outside support. At the same time, the company
provides support when requested. Through its cloud-based training solution, in
person workshops, and other documents from support portal, Temenos can provide
training support to clients’ staff and partners. Besides the TPH solution, Temenos
offers other solutions across all banking lines of business.
Roadmap 2018
For the near future, Temenos is working on implementing digital signatures on
all payment interfaces (advanced security feature). It also aims to extend Instant
Payment clearing schemes for Hong Kong, Malaysia, Philippines, Vietnam around
Asia. Function-wise, it will add Auto-throttling of payments for liquidity management.

Kapronasia Competitive Index
The Kapronasia Competitive Index is designed to give readers a visual representation

of the overall results from our Payment Hub Comparison Index.
By combining all of the key findings, the chart shows current market competitiveness
vs future positioning. Current market competitiveness includes product functionality,
support, and pricing. Future positioning takes into account new technology, regional
coverage, and roadmap. The size of each circle indicates the number of customers
in Asia Pacific region for each company.
Kapronasia Competitive Index

60
58
Infosys
56 Finacle
Future Positioning
54 Oracle
52
Pelican Temenos
Finastra TCS
50
ACI FIS
48
46
35 40 45 50 55
Current Competitiveness
Overall, the core functionality of all the solutions are well-designed and should largely
meet the requirements of most clients. The differences lay in other details or services.
Although Infosys, Temenos and Oracle stand out, continuous innovation from all of
the players means that no company can simply rest on their laurels.

Sidebar: BaaS - Banking as a Service
A rapidly growing part of Asia's Financial Services Industry is BaaS. Typically
in the form of a hosted-cloud solution, vendors like Mambu are creating new
potential options for banks as they look at potential core-systems options. In
addition, certain players like Mulesoft provide integration software that could
feasibly replace the functionality of a payment hub.
Yet, although we took a look at some of these potential payment hub

substitutes, there is something to be said about a best-in-breed solution
that focuses on a specific problem.
A BaaS or 3rd party integration partner may be able to provide a workable

solution, our recommendation for most of the banks that we work with is to
focus on a complete payment hub solution whether as part of the existing
core-systems or otherwise. Although BaaS or 3rd party integration may
make sense in the short-run, longer term, they are not mature enough for
sizable banks.

Conclusions
Payment hubs have come a long way in the past decade and are an
integral part of many banks' strategies for tackling the challenges of a
rapidly changing and innovating payments market. Payment hub solutions
facilitate payment integration, creating more efficient and cost effective
payment systems today as well as help banks prepare for tomorrow
through standardized API interfaces and ISO20022 settlement and
clearing standards.
All of the vendors we included in this report have well-established, robust,

and functional payment hub solutions, which made it all the more difficult
to rank and rate the providers themselves. There are slight variations in
terms of cloud readiness, data integration, etc., amongst all of the vendors
and those characteristics likely mark the decision points that banks and
financial institutions will likely want to focus on. If you are pursuing a cloud-
strategy, finding a vendor that matches that strategy is all the more critical.
What should also be considered is that nearly all of the vendors surveyed
also have larger core-banking platforms. In some cases the payment hub
is a stand-alone module of that core-banking platform. Although of course
vendors would prefer that a bank use the entire solution, sometimes this
is not realistic, so paying attention to how the platform integrates into a
financial institution's existing infrastructure is critical.
The emergence of PaaS core-banking providers like Mambu and 3rd party
integrators like Mulesoft also present an interesting wrinkle in the payment
hub story. By providing completely hosted core-systems environments,
these 'start-ups' are rapidly growing their footprint in the market and
provide a viable option for smaller or more budget constrained banks, but
likely not for larger production systems.
In the end, selecting a payment hub solution provider is a very "personal"

decision. It is impossible for any vendor analysis to provide all of the
answers for any bank, but hopefully this report has given you some idea
of how to approach and potentially select your new payment hub solution.

kapron
ASIA
Kapronasia is a leading provider of market research
covering banking, payments, capital markets, and
insurance. From our offices in Shanghai, Hong Kong, New
Delhi, and Singapore, we provide clients across the region
the insight they need to understand and take advantage
of their highest-value opportunities in Asia and help them
to achieve and sustain a competitive advantage in the
market.
For more information about Kapronasia, please email:

research@kapronasia.com or
visit https://www.kapronasia.com

2018 Asia Pacific Vendor Landscape: Payment Hubs: A Look at The Key Providers of Payment Hub Solutions in Asia

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2018 Asia Pacific Vendor Landscape: Payment Hubs: A Look at The Key Providers of Payment Hub Solutions in Asia

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KA2018-08

2018 Asia Pacific Vendor Landscape:

2018 Asia Pacific Payment Hub Vendor Landscape Page 2

With such a quickly-evolving payment environment, banks may find it difficult to

2018 Asia Pacific Payment Hub Vendor Landscape Page 3

The Digitization of Asia

2018 Asia Pacific Payment Hub Vendor Landscape Page 4

Payment Hub Development in Asia

Launching a payment hub enables a bank to consolidate and converge multiple

2018 Asia Pacific Payment Hub Vendor Landscape Page 5

2018 Asia Pacific Payment Hub Vendor Landscape Page 6

ASEAN’s integration and focus on real-time and cross-border payments will be a

2018 Asia Pacific Payment Hub Vendor Landscape Page 7

2018 Asia Pacific Payment Hub Vendor Landscape Page 8

2018 Asia Pacific Payment Hub Vendor Landscape Page 9

Key product features

New Technology Development

2018 Asia Pacific Payment Hub Vendor Landscape Page 10

2018 Asia Pacific Payment Hub Vendor Landscape Page 11

2018 Asia Pacific Payment Hub Vendor Landscape Page 12

Key product features

New Technology Development

Liquidity/risk management enablement

2018 Asia Pacific Payment Hub Vendor Landscape Page 13

2018 Asia Pacific Payment Hub Vendor Landscape Page 14

Key product features

New Technology Development

Liquidity/risk management enablement

2018 Asia Pacific Payment Hub Vendor Landscape Page 15

2018 Asia Pacific Payment Hub Vendor Landscape Page 16

Key product features

New Technology Development

2018 Asia Pacific Payment Hub Vendor Landscape Page 17

2018 Asia Pacific Payment Hub Vendor Landscape Page 18

2018 Asia Pacific Payment Hub Vendor Landscape Page 19

Key product features

New Technology Development

2018 Asia Pacific Payment Hub Vendor Landscape Page 20

Pattern Oracle's Approach

2018 Asia Pacific Payment Hub Vendor Landscape Page 21

2018 Asia Pacific Payment Hub Vendor Landscape Page 22

Key product features

New Technology Development

2018 Asia Pacific Payment Hub Vendor Landscape Page 23

2018 Asia Pacific Payment Hub Vendor Landscape Page 24

For cloud services, Pelican offers a range of volume-based subscription tariffs

2018 Asia Pacific Payment Hub Vendor Landscape Page 25

Key product features

2018 Asia Pacific Payment Hub Vendor Landscape Page 26

Liquidity/risk management enablement

2018 Asia Pacific Payment Hub Vendor Landscape Page 27

2018 Asia Pacific Payment Hub Vendor Landscape Page 28

Key product features

2018 Asia Pacific Payment Hub Vendor Landscape Page 29

New Technology Development

Liquidity/risk management enablement

2018 Asia Pacific Payment Hub Vendor Landscape Page 30

2018 Asia Pacific Payment Hub Vendor Landscape Page 31

The Kapronasia Competitive Index is designed to give readers a visual representation

Kapronasia Competitive Index

2018 Asia Pacific Payment Hub Vendor Landscape Page 32

Yet, although we took a look at some of these potential payment hub

A BaaS or 3rd party integration partner may be able to provide a workable