The impact of the pandemic on the banking industry was immediate. The shift to digital transactions not only changed the industry, but every industry globally, as consumers accepted the need to make purchases and payments using digital devices, with embedded experiences and one-touch engagement.
These changes tested the payments maturity of every financial institution. Most banks and credit unions were unprepared for expectations of the consumer and merchants who wanted payments that were simple, fast, safe and embedded. The combination of customer expectations, back-office operations, technology-driven opportunities, and the increase in non-traditional competitors, quickly exposed much of the industry to the realization that their payments infrastructure was not prepared for the future.
Financial institutions of all sizes must make their payments infrastructure more agile and respondent to the opportunities and threats today and in the future. What was once a planning effort for an unknown time in the distance is a requirement today.
While supporting payments is far from the only priority financial institutions must address as part of their digital transformation journey, clearly organizations must achieve a higher level of payments maturity and efficiency, while supporting innovation that will meet customer expectations and increase business value. A payments transformation strategy must include a greater commitment to data, advanced analytics, modernized infrastructure, risk and fraud mitigation. Retraining and re-skilling people will be imperative to stay competitive.
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