LONDON and NEW YORK, Sept. 22, 2014 /PRNewswire/ -- The next generation of tech-savvy entrepreneurs and business leaders is transforming the global payments market according to a new report, Global Payments 2020: Transformation and Convergence, from BNY Mellon, a global leader in investment management and investment services.
The report says the payments landscape is being shaped by the needs and expectations of retail customers as much as by commercial and corporate clients, as the retail segment's lead in developing new payments solutions filters up to the commercial and corporate segments. Commercial and corporate clients increasingly expect payments solutions to include being able to settle anytime, anywhere, across any channel, which implies a high level of interoperability across systems and across geographical markets.
"The next generation of entrepreneurs and business leaders is taking the helm of economic and commercial activity," said Dominic Broom, head of EMEA sales and relationship management, Treasury Services at BNY Mellon. "To these tech-savvy leaders, having retail banking on their smartphones and tablets is second nature and they are accustomed to convenient, user-friendly applications that offer speed and flexibility. Such expectations are filtered through to commercial and corporate clients, and banks need to embrace the technology."
One of the ways banks can harness this technology is to explore more non-traditional alliances and partnership models, both within financial services and beyond, according to the report. Banks are working in a highly regulated environment, so could find mutual benefit by working with non-bank institutions such as mobile or social network operators, which tend to be more tech-savvy and agile.
The other main drivers of change in global payments include demographics which are reshaping clients' expectations and access to payment channels, the ascent of China which is reshaping traditional notions of north-south trade flows, and currency markets and regulatory regimes which are reflecting the increasingly dominant role of central banks in the management of the global economy. The report offers recommendations for how banks can respond to this threat by:
- identifying and engaging more strategically in markets and industry segments where payers and beneficiaries are prepared to pay a premium for the reliability and security of bank payment channels and the integration of those channels into other aspects of treasury and finance management;
- actively targeting flows related to demographics, such as the compensation and pension flows linked to the baby boomer generation, or flows involving the emerging middle classes in China, India and elsewhere;
- targeting high-growth client segments such as small and medium-sized enterprises, for which advanced payment solutions can mean survival in the context of cash and liquidity management and trade competitiveness, as well as access to a wider range of commercial relationships;
- understanding and positioning themselves for the increasingly cross-border global nature of payments by providing more efficient and transparent currency conversion services as an integral part of global payment offerings.
To view the report, Global Payments 2020: Transformation and Convergence, please click here.
Notes to editors:
With locations on six continents and an extensive global network of correspondent financial institutions, BNY Mellon's Treasury Services group delivers high-quality performance in global payments, trade services and cash management. It helps clients optimise cash flow, manage liquidity and make payments more efficiently around the world in more than 100 countries. Processing payment transactions in over 120 currencies, the company is a top-five participant in both the CHIPS and overall funds transfer markets. Earlier this year, BNY Mellon launched its new global payments infrastructure which over time will process any payment on a single platform, anywhere – irrespective of its value, currency or clearing mechanism. The company is also a recognised leader in the delivery of private-label treasury services solutions for banks and other large institutional clients.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries and more than 100 markets. As of June 30, 2014, BNY Mellon had $28.5 trillion in assets under custody and/or administration, and $1.6 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com or follow us on Twitter @BNYMellon.
This press release is issued by The Bank of New York Mellon to members of the financial press and media. All information and figures source BNY Mellon unless otherwise stated as at June 30, 2014.The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818. Branch office: One Canada Square, London E14 5AL. The Bank of New York Mellon is supervised and regulated by the New York State Department of Financial Services and the Federal Reserve and authorised by the Prudential Regulation Authority. The Bank of New York Mellon London branch is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.
SOURCE BNY Mellon