Since the first appearance of electronic payments and subsequent birth of the payments industry, we have seen a number of monumental shifts driven by the requirements that each new ‘era’ has presented. It is the development and evolution of technology that has made these changes possible and revolutionised our market.
As financial services began to penetrate every aspect of consumers’ lives and a multitude of products tailored to very specific market segments have arisen in the last decade or so, we’ve seen yet another paradigm shift. The era of hyper-personalisation is upon us, but the question is, is your tech enabling you to compete? Or is it holding you back?
Long gone are the days where financial institutions are in the driving seat, consumers have taken control and their bank now needs to meet their expectations. And while FIs across the globe are listening more than ever to what their customers want, are they able to do follow through and provide their customers with the options and experiences they truly desire with the speed required?
Many FIs are still sitting on platforms born in the 1990s, or 2nd generation platforms, that were developed before widespread internet adoption, the concept of smartphones, open banking, the Pays, etc., even existed or could have been imagined. These systems were built around one object – the card, meaning using a card is the only way to make a payment. Let’s fast forward to today, where a card is not the only way to pay, and the payments industry is moving at such speed that the future can no longer be predicted. These 2nd gen platforms, while still currently just about coping with the changing world by using plug-ins and wraparounds, just aren’t built for the world we live in, and are certainly not an enabler for the future.
Don’t get us wrong, undoubtedly, 2nd gen platforms still have their place in today’s payments industry, and for some FIs around the globe, they are still very relevant. However, for FIs that want to truly be innovative, carry out the requirements dictated to them by their customers, and future-proof their business, the technology offered by 2nd gen platforms is blocking them from doing so. Its inability to adapt is inhibiting FIs to react accordingly.
So, why are you still contemplating your businesses future on a platform entering its fourth decade?
Click here to find out how future-proof 3rd gen platforms can enhance your business offerings.