1599739_RealNet Central

If central banks and nations want to foster competition and payments innovation, they need a future-proof central financial infrastructure. Learn from these proven best practices.

6 TIPS FOR SPURRING FINANCIAL INFRASTRUCTURE INNOVATION

TIP SHEET

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LET’S CHANGE HOW MONEY MOVES

Traditionally, central infrastructure application architecture was cast in stone, making further integration and development tough. But new entrants have challenged the status quo, moving from closed, batch-oriented systems to API-based applications. This makes it easier to expose APIs to new banks, fintech players and non-bank startups so they can deliver innovative products and services.

EMBRACE AN API-FIRST STRATEGY

Which country has a bank that followed the one-rule strategy to introduce the instant payments-powered service FLIK?

ESTABLISH ONE SET OF RULES

When acquiring or refreshing your central infrastructure, you need a clear data strategy and roadmap. Providing accessible data insights to everyone – both domestically and abroad – instills confidence in the health of the financial ecosystem. The result? Fintechs can more easily create much-needed services, fair competition thrives and economies grow.

ENSURE DATA TRANSPARENCY

Which services and components should be part of the centralized infrastructure, and which should be left to the banks and fintechs creating new services? It’s a critical question, because if the infrastructure isn’t open from the start, it’s a lot harder to make it so later. Openness also ensures that the infrastructure hasn’t been locked and your nation remains open to new technology and future opportunities from different vendors.

KEEP OPENNESS TOP OF MIND

Open banking trends and recent regulations are complementary, not separate, processes – a fact nations must accept if they are to benefit from highly connected financial ecosystems. Rather than giving fintechs the complex task of integrating with the open APIs of all individual banks in a market, they can focus instead on building great services on top of the new infrastructure.

UNDERSTAND AND ACCEPT THE REALITIES

Because markets differ and adoption varies from country to country, resist the temptation to launch the infrastructure plus a wide range of services all at once. Successful launches occur in phases, reducing both costs and risk. This agile approach allows time to assess market need and enables banks and non-banks to properly integrate their innovations with the new central infrastructure.

DRIVE IMPLEMENTATION IN PHASES

Join the 50+ countries that are planning or already have a central infrastructure with open API, positioning them for a future of innovation and inclusion. FIS can help.

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John Smith, FIS

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Good job!

TRY AGAIN!

back

in anticipation of future uncertainty

Increase protection

and ensure they pass any new compliance or regulatory changes

Review current tests

Monitor effects

Make connections

Get in touch

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The answer is Slovenia. Thanks to Slovenia’s Bankart, merchants now accept instant payments from consumers using QR codes.

hungary

slovenia

croatia

The answer is Slovenia. Thanks to Slovenia’s Bankart, merchants now accept instant payments from consumers using QR codes.

If standards, formats and principles are different for each participant, the resulting complexity will drastically diminish your chances for a well-connected, frictionless ecosystem. Institute guidelines and communicate them to all stakeholders. The addition of value-added services will not only be easier, but also less costly.

A great example

United Payments Interface (UPI), developed by National Payments Corporation of India, enables consumers to make instant payments using any banking or non-banking app.

A great example

success in pakistan

Karendaaz Data Portal features a highly user friendly interface that makes data points such as transaction volume easily available across different railways and users.

Here’s an idea

Split the different layers into separate RFPs so you have more choices among vendors, technologies, and solutions for both the central infrastructure and value-added services layers.

twelve

ten

nine

The answer is nine. It’s then scaled with additional overlay services as dictated by the market.

RealNet Central developed by FIS® can be deployed within how many months?

Building on success

Based on the massive adoption of PIX, Banco Central do Brasil has proposed mandates requiring banks to share data with non-banks to enable them to directly initiate payments on behalf of customers.

The answer is nine. It’s then scaled with additional overlay services as dictated by the market.

That is correct! Thanks to Slovenia’s Bankart, merchants now accept instant payments from consumers using QR codes.

That is correct! It’s then scaled with additional overlay services as dictated by the market.