As CIO and CTO, are you doing everything you can to harness simple and integrated technology? Don’t be a late adopter – the time to embrace change is now.
SIMPLIFY YOUR TECH – THERE’S NO TIME TO LOSE
ARTICLE
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Cautious adoption vs late adoption
How does this all help me?
It’s time: Align and consolidate your platforms
Cautious adoption vs late adoption
Don't be a late adopter
SWIFT gpi
It’s time: Align and consolidate your platforms
“So many firms have a huge spiderweb of servers, connections and in-house tools because markets and vendors weren’t previously ready. But mature solutions are available now – and the solutions that were adopted in the past can be improved upon.”
Maintaining a simple and effective tech infrastructure is paramount. Solutions need to be scalable, efficient and agile, while taking advantage of the latest technology integrations.
Information and technology teams seek to harness technology, and firms need to modernize wherever possible. By consolidating their platforms and rationalizing vendor relationships, CIOs and CTOs like you can overcome cost and efficiency challenges. You can also increase the interoperability of your systems and gain access to more integrated workflows.
At the same time, firms are looking to take advantage of new deployment models and cloud solutions – thereby tapping into cost savings and driving greater flexibility. There are plenty of reasons to avoid action. You might think that APIs and cloud solutions aren’t ready, or that too much customization is needed.
A 2022 survey carried out by Acuiti with FIS®, Fortune Favors the Bold, looked at the drivers of investment in front-office technology. Achieving better front-to-back integration was identified as a key driver of investment. It’s also the most obvious area to focus on when seeking greater efficiency.
Another Acuiti survey from 2021, Increasing Efficiency in Cleared Derivatives Post-trade Technology, noted that derivatives professionals have been “forced to add technology in a piecemeal manner” in recent years in response to investor demand. The report pointed out that the resulting lack of interoperability has reduced speed, increased the potential for error and raised costs.
As such, 59% of firms said they were considering consolidating their vendor relationships as part of the modernization of their post-trade infrastructure. Does invest to divest resonate with you?
Have you thought about integrating and rationalizing vendors?
Is there even a choice? Harness new deployment models and cloud
Get in touch
SIMPLIFY YOUR TECHNOLOGY. NOW.
You are probably already harnessing the opportunities brought by new deployment models. Indeed, 61% of MI executives are considering outsourcing either services or technology. At the same time, 62% see data distribution as an area of focus for managed services.*
As firms prioritize cost savings, agility and flexibility, it’s clear that cloud-based solutions have much to offer. A small number of market participants are still relying on on-premise hosting, while most prefer the flexibility of the cloud. The number of cloud-ready applications are expected to rise by 27% between 2021 and 2025.* However, it is predicted that most firms will continue running a combination of in-house and cloud solutions.
Is there even a choice? Harness new deployment models and cloud
DON’T BE A LATE ADOPTER
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Source: Increasing Efficiency in Cleared Derivatives Post-trade Technology, Acuiti 2021
Central bank digital currencies
ROI achievements on payment initiatives
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0
– Pontus Eriksson, Strategy Director, FIS
Real-time cash reporting allows you to access your account statements and balances in real time via APIs – so you can use that information faster and incorporate it into different business processes. For example, you might quickly identify that the balance on a particular account is zero, and that funds need to be transferred over before a particular payment can be released.
Real-time cash reporting
SWIFT gpi allows banks to track the status of cross-border payments end-to-end. What’s more, banks can also enable customers to track payments in real-time from their treasury and payment systems – meaning there’s no need to spend hours trying to pin down the status of individual payments.
SWIFT gpi
Central bank digital currencies, while nascent, could provide additional payment methods with central bank issued money.
Central bank digital currencies
Real-time payments are cleared within seconds, instead of minutes, hours or days – which takes the uncertainty out of the settlement process and provides instant visibility over the status of payments. Modern real-time payment schemes can also carry more remittance data than traditional payment methods, speeding up the reconciliation process.
Real-time payments
Benefits of real-time payments
36%
work with 6+ vendors across post-trade operations
thinking of consolidating vendors
59%
Access to transaction data
30%
Reduce costs
39%
Improve control and visibility
42%
Market uncertainty
44%
Drivers for increasing investment in digital tech
Central bank digital currencies have the potential to offer more efficiency and replace the handling of cash and associated costs.
Central bank digital currencies
FIS RealNet is the industry’s first SaaS-based account-to-account payments platform. Instead of having to use individual niche fintech providers in different markets and contexts, companies can use RealNet’s network of networks to identify and use the most cost-effective routing for each transaction.
FIS RealNet
Real-time payments are typically associated with a lower cost than more traditional Real Time Gross Settlement (RTGS) payment methods. They can also drive process efficiencies that may lead to further cost savings.
Real-time cash reporting
SWIFT gpi once again has benefits to offer where costs are concerned as the service provides greater transparency over costs and charges.
SWIFT gpi
Source: FIS Readiness Report 2021
indicate they are taking advantage of real-time payments
ROI achievements on key drivers
Don't be a late adopter
What about you, are you considering Business Process as a Service (BPaaS) or Software as a Service (SaaS)?
While the payments space is rich in innovation, it isn’t always obvious how specific initiatives can actually help your organization. Before you can identify the benefits of different initiatives and developments, it’s important to pinpoint the challenges you’re facing, and ask yourself whether different initiatives can solve these challenges in a way that suits your firm. In today’s market, companies’ top priorities include gaining visibility over payments, preventing fraud and reducing costs.
So, what happens when we look at some of the most interesting payment innovations through each of these lenses?
SWIFT gpi offers a pre-validation service that allows banks to validate the beneficiary’s account information with the beneficiary bank. It also includes a Stop & Recall service that allows corporate customers to ask their banks to stop fraudulent or erroneous payments.
Central bank digital currencies have the potential to reduce the risk of fraud as they increase the traceability of transactions and support greater monitoring of financial activity.
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0
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally.
Our more than 55,000 people are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index.
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Challenges
Goals
Financial market trends
Greater competition
Talent shortage and change management
Convergence of high-touch and low-touch
Market uncertainty
Market volatility and fragmentation
Fewer strategic vendor partnerships, resilient technology
Increased regulation
Cost pressures
Simpler, leaner, more flexible model
New deployment models
Cloud adoption
Platform consolidation and enhancements
Increased market electronification
Automation and efficiency
Front-to-back integration, artificial intelligence, machine learning
Data explosion
Data management and monetization
Data platform integration and open APIs
executives consider outsourcing*
focus for managed services*
It’s no secret that harnessing innovative technology is a priority for information and technology teams in today’s fast-evolving market. And while teams are continuing to pursue modernization, there’s still some significant work to do.
It’s easy to assume that APIs and cloud technology aren’t ready yet – but in reality, the sophisticated solutions you need are already available. What’s more, some of your peers are already using them.
It’s clear that plenty of firms are already taking action. A recent industry report by Celent* found that market infrastructure (MI) executives are ramping up their investment in modern technology.
Only 5% of MI leaders were reported to currently have a fully modernized tech stack – but this will rise to 19% by 2025, while 71% will be “almost fully modernized.”
Source: Celent, CIO Market Infrastructure Survey 2021: The Digital Journey to 2025.
In the search for more modern, flexible and integrated technology, firms are taking steps to consolidate their existing platforms – from aligning front-to-back operations and automating transaction flows to improving efficiency and serving multi-asset classes.
As they focus on consolidation, firms are looking for broker-neutral, integrated multi-asset class platforms that offer fully integrated workflows. Other areas of focus include the convergence of high-touch and low-touch trading.
Meanwhile, MI executives are becoming more open to partnering in accessing and provisioning technology and services. In fact, 31% of executives are set to move more components to third-party providers.*
So which camp do you fall into – are you a cautious adopter who’s gradually implementing new tech? Or are you at risk of falling behind if you don’t speed up your investment?
Source: Increasing Efficiency in Cleared Derivatives Post-trade Technology, Acuiti 2021
thinking of consolidating vendors
59%
work with 6+ vendors across post-trade operations
36%
A 2022 survey carried out by Acuiti with FIS®, Fortune Favors the Bold, looked at the drivers of investment in front-office technology. Achieving better front-to-back integration was identified as a key driver of investment. It’s also the most obvious area to focus on when seeking greater efficiency.
Another Acuiti survey from 2021, Increasing Efficiency in Cleared Derivatives Post-trade Technology, noted that derivatives professionals have been “forced to add technology in a piecemeal manner” in recent years in response to investor demand. The report pointed out that the resulting lack of interoperability has reduced speed, increased the potential for error and raised costs.
As such, 59% of firms said they were considering consolidating their vendor relationships as part of the modernization of their post-trade infrastructure. Does invest to divest resonate with you?
Have you thought about integrating and rationalizing vendors?
Source: Celent, CIO Market Infrastructure Survey 2021: The Digital Journey to 2025.
%
%
61
62
Source: Celent, CIO Market Infrastructure Survey 2021: The Digital Journey to 2025.
Have you already moved to the cloud?
But the reality is that the solutions you need are already available – and if you don’t want to get left behind, the time to act is now.
of market infrastructure
see data distribution as a