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Bank payment services future shown by BNY Mellon’s new Global Payments Infrastructure

Banks have to remain in the payment services business, for many banks no payments means extinction. BNY Mellon, a global leader in investment management and investment services, have announced the beginning of a new era in its Treasury Services business with the launch of a new global payments infrastructure. This new infrastructure developed in partnership with Clear2Pay and other bank partnerships reveal what corporates can expect from the leading cash management banks.

BNYMellon new platform 

BNY Mellon’s new global payments infrastructure is designed to deliver significantly enhanced levels of processing efficiency, reliability, transparency and cash management control. The real-time payments platform uses Clear2Pay support and adapted technology to provide a scalable and ‘future-proofed’ payments processing platform that is flexible and can handle volume growth, changing payment geographies with the rise of south-south trade, and new payment types such as mobile transactions. BNYMellon will be able to cope with new demands from mobile transactions, new currencies like the renminbi (RMB) and perhaps even virtual currencies like Bitcoin in the future. BNY Mellon now have “any time, any currency, any geography” functionality. 

Crucially the new payment platform can also handle the regulatory drive for more transparency post-crash with real-time liquidity management, ahead of the new Basel III capital adequacy regime which will demand intra-day risk reporting and better real-time liquidity management.

Partnering to move into the business transaction business

Banks are partnering with all sorts of payment providers to enhance their services. The focus is no longer just on making the payments in all sorts of new channels, e.g. mobile, it is on making the overall business transaction more efficient.

A good example is Earthport’s (a cross-border payments service provider which gives their clients access to the local clearings in more than 50 countries and territories across the globe) announcement of a multi-year agreement with BofA Merrill to develop new services. This agreement will significantly expand BofA Merrill’s low value clearing capabilities globally, taking them into 25 new markets which is important, but nowhere near as important as the opportunity to add new payment functionality, e.g. adding full remittance data, tracking information, etc. Ather Williams, Managing Director, Global Payments & Global GTS Strategy, Global Transaction Services at Bank of America Merrill Lynch believes that, “The future is around data and overall efficiency of the business transactions.”

A different type of partnering example - between the retailer and the bank - is the Barclays Pingit mobile service which provides functionality that makes it as easy as possible for consumers to pay by their mobile devices and for corporates to collect m-payments as cost-effectively as possible. The functionality includes:

  • easier for consumer mobile checkout by minimising the amount of personal data required for each transaction
  • full reconciliation data.

CTMfile take: Corporates focus on the overall acceptability and efficiency of their business transactions. Just making regulatory compliant payments is no longer enough. Banks are having to partner with all sorts of providers to enable them to survive in this new market.

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