THE TRANSFORMATIVE IMPACT OF PAYMENTS TECHNOLOGY
A Q&A FOR FINANCIAL INSTITUTIONS
Don’t get left behind. With help from FIS® money movement expert, Chris Como, explore the trends and innovations that are shaping the future of financial transactions for businesses and consumers alike.
Future-proof your payment processes with the latest fintech
The landscape of payments never stops changing – and advancements in technology are accelerating its evolution.
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How can banks succeed – or compete – with embedded finance?
As embedded finance grows, what’s the future of card payments?
How much control does your fraud prevention tech give banks?
How can banks help reduce card-not-present fraud?
Why is fraud still a big problem in payments?
How can FIS help banks improve payment processes and services?
What are your payments clients’ priorities at the moment?
What motivates banks to embrace new technologies?
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Why choose Payments One over other card payment platforms?
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What other trends are there to look out for in the card space?
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Head of Cards and Money Movement, FIS
Chris Como
A top priority for FIS and its banking clients is to simplify payments technology and make everything uniform and easy. That means stripping away all the complexities of interacting with payments networks and simplifying the way our platforms work. Banks are also keen to embrace new payment methods and technologies. Credit clients are especially interested in buy now, pay later (BNPL), which continues to be a focus for us.
SIMPLIFY AND INNOVATE
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Banks are also keen to embrace new payment methods and technologies. Credit clients are especially interested in buy now, pay later (BNPL), which continues to be a focus for us.
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We’ve unified our user interface for back-office teams, created real-time monitoring tools that work across different platforms and delivered a standard API suite. This all makes the technology easier to use. We’re also helping our clients strike a balance between retaining older customers and attracting a new generation. For growth, it’s increasingly critical to offer Gen Z consumers more innovative new ways to pay.
UNIFY AND DIVERSIFY
We’re also helping our clients strike a balance between retaining older customers and attracting a new generation. For growth, it’s increasingly critical to offer Gen Z consumers more innovative new ways to pay.
We’ve unified our user interface for back-office teams, created real-time monitoring tools that work across different platforms and delivered a standard API suite. This all makes the technology easier to use.
Business Executive, Corporate Liquidity, FIS
Thomas Jerolitsch
Fraud is one of the top five issues for the payments space. And the more motivated and creative the fraudsters become, the more challenges our clients face. By shifting to the EMV standard, which really secured card-present transactions, the card industry helped fraud rates drop in the physical world. But the rise of card-not-present e-commerce has seen fraudsters get more advanced and sophisticated in the digital world.
E-COMMERCE FUELS FRAUD
Without the ability to take advantage of low-cost digital payment channels, you may also incur unnecessary costs, struggle to adopt the new SWIFT ISO 2022 payment standard or integrate with modern infrastructure. Treasurers in insurance firms are often exposed to multiple market risks. Multinationals, for example, will have to manage foreign currency exposure, while life insurers face interest rate risks to their balance sheet. Hedging against these risks incorrectly can have a significantly negative impact on your firm’s P&L and undermine not only the treasury but the wider organization as well.
The key is to look at every digital transaction and block it if it looks odd. So, banks need to be able to take in much more data and make the best decisions to protect cardholders and account holders. That’s not easy; as well as access to data, you need deep expertise. For security, FIS is now using neural network models for decisioning and testing opportunities to use AI, which fraudsters are already using aggressively.
KEEP WATCH ON YOUR DATA
So, you can eliminate the difficulties and costs of managing connections from different payment solutions, improving your controls and also increasing efficiency and gaining economies of scale.
That’s not easy; as well as access to data, you need deep expertise. For security, FIS is now using neural network models for decisioning and testing opportunities to use AI, which fraudsters are already using aggressively.
The key is to look at every digital transaction and block it if it looks odd. So, banks need to be able to take in much more data and make the best decisions to protect cardholders and account holders.
A centralized system can also greatly simplify connectivity. For example, FIS Payment Hub will connect easily via readymade APIs to an enterprise resource planning system, your banks and your multiple payment providers.
We’re happy to do as much or as little as our clients need us to. We can manage fraud completely on their behalf – or they can run our solutions themselves in line with their own fraud prevention strategies. It depends on the sophistication of the client. For example, new fintechs may be laser-focused on fraud prevention. So, we can simply create the infrastructure that allows them to do all the work themselves.
FLEXIBILITY IS THE KEY
We’re happy to do as much or as little as our clients need us to. We can manage fraud completely on their behalf – or they can run our solutions themselves in line with their own fraud prevention strategies.
It depends on the sophistication of the client. For example, new fintechs may be laser-focused on fraud prevention. So, we can simply create the infrastructure that allows them to do all the work themselves.
For fintechs, most use cases for embedded finance actually rely on using a card. Customers want to embed the ability to open accounts and make transactions – and debit and credit cards are pretty core to that. Similarly, FIS Payments One, our card payments solution, is central to our own embedded finance capabilities – and will provide the back-end infrastructure that powers new partnerships with banks and fintechs.
CARDS ARE STILL VITAL
If you want to play in the embedded finance space, it’s supercritical to partner with a provider like FIS who can enable the underlying technology. But if you don't, you still need technology that helps you create the best experiences for your customers. So, essentially, you need to choose a technology partner that enables embedded finance or empowers you to compete effectively with it.
FIND THE RIGHT PARTNER
FIS is well placed to help insurance clients take their hedging infrastructure to the next level. For years, banks have relied on our innovative technology to deliver foreign exchange hedging services to their customers. Now, we’ve incorporated the same advanced capabilities into Treasury, Risk and Payment Suite – so treasurers can execute hedging strategies directly within the platform and reduce their operational costs. That’s a great example of how we help treasurers add value by bringing more value to the table ourselves.
Typically, clients first think about switching to a new solution because they want to improve efficiency and reduce costs. But there’s also a hunger for innovation and new development – clients and prospects want cutting-edge solutions built fast. Another motivation is the need to modernize, especially in core banking where clients are looking to not only increase efficiency but also access more sophisticated features.
EFFICIENCY AND INNOVATION
Typically, clients first think about switching to a new solution because they want to improve efficiency and reduce costs. But there’s also a hunger for innovation and new development – clients and prospects want cutting-edge solutions built fast. Another motivation is the need to modernize, especially in core banking where clients are looking to not only increase efficiency but also access more sophisticated features
As a single platform globally, Payments One gives banks the benefit of undiluted investment on our part. Our competitors can run multiple platforms, which means they must split their spend across them all to stay current. So, if a client wants to offer BNPL on one platform, there’s a risk it could only be possible on one of the others. With FIS, all the advanced functionality goes into the singular Payments One platform.
CONSTANT INNOVATION
CONCLUSION
Thanks to continually high interest rates and funding costs, I think there will be a change in the credit cycle. And that could make credit losses more serious for card providers. It’s going to be important for financial institutions to become as efficient as possible and make sure they are in tight control and monitoring their credit losses. At FIS, we provide the tools and partnership you need to succeed on all fronts.
MACROECONOMIC EVOLUTION
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