NEW YORK and LONDON,
Oct. 8, 2015 /PRNewswire/
-- Venture capital investment, accelerator programmes and a
proactive focus on the deployment of new technologies through
allegiances with fintech companies should be priorities for banks
as a multiplicity of new payment capabilities come to the fore,
according to a new report by BNY Mellon.
The new report, Innovation in Payments: The Future is
Fintech, follows on from Global Payments 2020: Transformation
and Convergence and hones in on the growing influence of fintech in
transaction banking. It assesses the direct and indirect impact of
the new technology on payments and the way in which it is moulding
client behaviour and fuelling expectations for better, faster and
more innovative solutions across the payments spectrum.
Cutting-edge technology holds great potential to transform how
consumers and clients initiate and process transactions. It's no
longer just a case of new currencies or faster payment methods, but
an entire rethinking of how transfers of any "value" might be
undertaken. More fintechs are graduating from the ranks of
start-ups to multi-billion dollar listed companies: at least 4,000
fintech start-ups are active1 and global investment in
fintech ventures tripled in 2014 to $12
billion2.
"The fintech era is upon us and banks shouldn't merely be
mindful of this; they should also have a clear strategy in place in
order to adapt to and benefit from fintech-fuelled changes," said
Ian Stewart, Chief Executive Officer
of BNY Mellon's Treasury Services business. "While the banking
industry is traditionally conservative about change, any hesitation
or ambivalence here could be costly. In order to position
themselves at the centre of the payments industry of tomorrow,
banks must act today to understand, interact with, and cherry-pick
from the full smorgasbord of fintech developments."
"BNY Mellon is immersed in the fintech sector," adds Stewart.
"We are focusing on and investing a great deal of time in exploring
the opportunities it has to offer the global payments arena in
areas such as the potential to reengineer payments, including
blockchain and big data technology. We are also working closely
with fintech firms to explore the use of new technology
capabilities."
"As a major provider of wholesale banking services to client
banks, we're committed to staying current on evolving conditions in
the banking industry, and liaise with our client banks about how
the changing landscape is likely to impact their business
strategies," said Anthony Brady,
Global Head of Business Strategy & Market Solutions for
Treasury Services at BNY Mellon. "Our research into the changing
transaction banking ecosystem has important implications for us as
a business, and we're eager to discuss with client banks how our
investments in technology are positioning us to be an even better
provider of support to them as they align their business plans with
the emerging future state of our industry."
While regulation has put pressure on bank resources, banks must
prioritise technology-focused strategies. The financial services
industry has one of the highest ratios of IT spend as a proportion
of revenue, with levels expected to reach US$197 billion in 20153. That said,
over three quarters of this is estimated to be in maintenance
rather than new services, so banks need to redress this imbalance.
The report examines what strategies banks should adopt in order to
understand and access these exciting fintech-fuelled developments,
and thereby future-proof their long-held position at the heart of
global payments.
To view the report, Innovation in Payments: The Future is
Fintech, please click here.
Notes to editors:
With locations on six continents and an extensive global network
of correspondent financial institutions, BNY Mellon's Treasury
Services group delivers high-quality performance in global
payments, trade services and cash management. It helps clients
optimise cash flow, manage liquidity and make payments more
efficiently around the world in more than 100 countries. Processing
payment transactions in over 120 currencies, the company is a
top-five participant in both the CHIPS and overall funds transfer
markets. Earlier this year, BNY Mellon launched its new global
payments infrastructure which over time will process any payment on
a single platform, anywhere – irrespective of its value, currency
or clearing mechanism. The company is also a recognised leader in
the delivery of private-label treasury services solutions for banks
and other large institutional clients.
BNY Mellon is a global investments company dedicated to helping
its clients manage and service their financial assets throughout
the investment lifecycle. Whether providing financial services for
institutions, corporations or individual investors, BNY Mellon
delivers informed investment management and investment services in
35 countries and more than 100 markets. As of June 30, 2015, BNY Mellon had $28.6 trillion in assets under custody and/or
administration, and $1.7 trillion in
assets under management. BNY Mellon can act as a single point of
contact for clients looking to create, trade, hold, manage,
service, distribute or restructure investments. BNY Mellon is the
corporate brand of The Bank of New York Mellon Corporation (NYSE:
BK). Additional information is available on www.bnymellon.com.
Follow us on Twitter @BNYMellon or visit our newsroom at
www.bnymellon.com/newsroom for the latest company news.
This press release is issued by The Bank of New York Mellon to
members of the financial press and media.
All information and figures source BNY Mellon unless otherwise
stated as of June 30, 2015.
The Bank of New York Mellon, London Branch, registered in England and Wales with FC005522 and BR000818.
Branch office: One Canada Square,
London E14 5AL. The Bank of New
York Mellon is supervised and regulated by the New York State Department of Financial
Services and the Federal Reserve and authorised by the Prudential
Regulation Authority.
The Bank of New York Mellon London branch is subject to regulation
by the Financial Conduct Authority and limited regulation by the
Prudential Regulation Authority.
Details about the extent of our regulation by the Prudential
Regulation Authority are available from us on request.
1
http://www.economist.com/blogs/economist-explains/2015/06/economist-explains-12
2
http://www.fintechinnovationlablondon.net/media/730274/Accenture-The-Future-of-Fintech-and-Banking-digitallydisrupted-or-reima-.pdf
3 Gartner IT Key Metrics Data 2012 IT Enterprise Summary
Report, Gartner 2012
Contact:
Malcolm Borthwick
+44 20 7163 4109
malcolm.borthwick@bnymellon.com
Ron Sommer
+1 412 236
0082
ron.sommer@bnymellon.com
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visit:http://www.prnewswire.com/news-releases/fintech-fuelled-change-offers-unprecedented-opportunities-for-banks-300156525.html
SOURCE BNY Mellon