Technology Record - Issue 22: Autumn 2021

129 F I NANC I A L S E R V I C E S effectively – which is where a platform approach to payments comes in. Banks have much to gain by embracing platforms that provide access to a wide range of products and services offered by an ecosystem of providers, thereby deliver- ing economies of scale that particularly benefit firms engaged in the manufacturing side of pay- ments. By adopting a more strategic approach, banks can take advantage of platforms that not only deliver core processing, but also offer the ability to build on additional elements to meet their specific needs. So what are the implications for banks’ posi- tioning within this new ecosystem? In the past, banks brought products and capa- bilities to the marketplace and customers sim- ply fitted in with the way they were delivered. Today that old order has been flipped on its head, with the move to a much more consumer- and customer-led world; one where customers demand how they want to engage with their banks, and the onus is on the banks to provide the customer experience and journey they’re seeking. Payments are an extremely important component of this customer experience-led environment and lifecycle. Banks are wrestling with working out where they will sit in the customer lifecycle and how they want to play within it. With the fundamentals in place and its direc- tion of travel established, the bank can move on to selecting and stitching together the right eco- system components. Choices here include going for platform-as-a-service solutions or licensed products, depending on how the organisation is structured and what it wants to achieve. On top of these decisions, the next set of choices are around planning out the customer journeys to offer the best possible experience. There’s no doubt that today’s payments land- scape is increasingly competitive – not only due to the impact of the pandemic, but as part of a shift that has been underway for some time. As the market continues to evolve, traditional banks must revisit their existing technology and processes in order to differentiate themselves in this space and attract new customers. The ultimate direction of travel for payments? Towards aworldwhere payments are not perceived as a separate service carried out for their own sake, but as one element of a wider value proposition and customer journey created via the ecosystem. Anders Olofsson is head of payments at Finastra