117 FINANCIAL SERVICES This means breaking down complex systems into smaller, flexible parts. The result is better scalability, quicker updates, and a more resilient payment system. Blockchain and artificial intelligence – Blockchain and artificial intelligence are shaking things up in the payments world. Blockchain offers secure, transparent transactions, while AI helps with fraud detection and personalising financial services. Together, these technologies are pushing the limits of what payments can do. Data modernisation – Banks are focusing on better data management and analytics to get valuable insights into transaction patterns and customer behaviour. This helps in creating more tailored and effective payment solutions. Investing in master data management also allows banks to get a better handle on various types of data such as client, reference, and product information. This helps speed up straightthrough processing rates and ensures smoother service for customers. On a global scale, banks, fintech companies, and technology providers are working handin-hand to innovate faster and build groundbreaking payment solutions that meet demand. Several technological capabilities are crucial pieces to this collaborative effort. Through open banking, third-party developers can access banking services through open APIs. This openness encourages innovation, leading to new payment solutions and giving customers more options. Embedded finance and banking-as-a-service (BaaS) are integrating financial services into different platforms. Now, businesses can add financial products to their services, making payments seamless and expanding what they offer. BaaS platforms provide the necessary infrastructure for these integrations. There are also ongoing efforts to bridge geographical gaps for instant payment systems. Interlinking instant payment systems offers many advantages, but can come with several challenges in interoperability, security, and compliance. Initiatives such as Project Nexus, Project IXB, and UPI Global are helping to solve this challenge and contribute to a more connected global payments network. International standards such as ISO 20022 are also helping streamline cross-border payments. This standard for electronic data interchange provides a common language to exchange information about payments. It also allows financial institutions to transmit additional information such as invoice data to improve transparency and efficiency in payments. At Orion, we are building a partner ecosystem that is designed to help businesses navigate the complexities of implementing innovative payment solutions fast. Keeping up with these changes is crucial as we navigate the future of payments and meet customer demand. Anoop Gala is the global head of financial services at Orion Innovation Alternate payment options such as contactless payment are becoming more flexible and accessible than ever before Photo: Unsplash/Nathan Dumlao
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