The Record - Issue 18: Autumn 2020

123 “All too often, banks are managing older generation payments platforms that have built up incremental functionality over time for which they were not originally designed” P E T E R HA ZOU , M I C ROSOF T and competition from non-banks, as payments become more instant, invisible and free, accord- ing to the Accenture report. “Rather than being at the forefront of the new wave of the booming payments market, banks are feeling the heat from new competi- tion and seeing their margins squeezed,” said an Accenture spokesperson in a recent press release. “We face an inevitable world of instant, invisible and free payments, which spells trouble for banks that don’t want to be relegated to the plumbing of payments. But it also presents an opportunity to tap into a new business model based on this digital boom.” Hazou agrees, adding that this is a watershed moment for banks. “Banks are recognising the need for change – and are taking action thanks to a push for digitalisation that has been exacer- bated by the current Covid-19 pandemic, along with the adoption of ISO 20022 and the increas- ingly widespread use of instant payments.” Microsoft and its partners are also playing a pivotal role in the drive for change. “By work- ing with the best partners in the industry, such as Finastra, ACI Worldwide, Temenos, Volante Technologies, FIS and Fiserv, we are enabling banks to reap the many benefits of the Microsoft Azure cloud, including lower total cost of ownership (TCO), increased scalability, speed to market and security,” says Hazou. Earlier this year, for example, Finastra and Microsoft announced a strategic, multiyear cloud agreement to help accelerate the digital transfor- mation of financial services. “We believe the future of finance is open,” said Simon Paris, Finastra CEO in a press release. “Together with Microsoft, we can provide people, businesses and communities with the solutions and services that fit around their needs and lives, unlocking the power and potential of finance for everyone. As the pandemic has brought the future forward with regard to digitalisation, our vision to transform the world of financial  F I NANC I A L S E R V I C E S