Prepare for a new payments ecosystem, warns 2017 World Payments Report

calendar iconOct 16, 2017

Source

Capgemini, 'a global leader in consulting, technology and outsourcing services' presented their 13th annual World Payments Report, in partnership with BNP Paribas but this time under a two-part format. The report's focus is analyzing the 'new payments ecosystem' and was published on October 9th, 2017.

The paper turns to standardisation as a key strategy for the increasingly collaborative world of payments. From communication between stakeholders to streamlining processes for international trade transactions. Unfortunately, with 'increasing collaboration' comes an 'increase in cybersecurity vulnerabilities'.

Addressing the entire payments sector with a focus on banks, treasury management, industry stakeholders and central authorities, the report urges current and future key players within the new payments ecosystem to seriously prioritise the cybersecurity threat, which will come hand-in-hand with the evolution of Fintech developments. 

One of the resolutions put forth by the paper revolves largely around strategic collaboration and regular security auditing but ultimately, this means one thing: Accountability. In an age where one's odds for being hacked are rising at an alarming rate and almost all financial non-cash (...ahem) transactions involve at least one 'third party', it is crucial that accountability is at the core of a new payments ecosystem.

Until this ecosystem is hacker and corruption proof, cash will continue to reign as king. 

New challenges, such as cybercrime, are driving artificial intelligence and machine learning to further automate monitoring and cost management to support a fully compliant and robust infrastructure
"

 Excerpts from 2017 World Payments Report 

Chapter 2: The Journey Toward a New Payments Ecosystem (on the role of corporate treasury management)

'...As the payments ecosystem evolves, the corporate treasury management function is also transforming (Figure 4.9). Treasury management is becoming more digitized, and treasurers are relying on banks to help them overcome some of the related challenges...

'As the automation of tactical and mundane operations increases, the treasury management function can assume a more strategic partnership role with business services. The future operating model of the treasury will be one whereby it can play a role in business decisions of the organization as a whole. The scope of treasury management is likely to extend to functions such as procurement and commodity risk management. This extended role will also have an impact on the security and fraud related decisions of the organization...' Continue reading (page 38).

'The need for robust cybersecurity solutions to cater to all forms of cyber threats has never been greater for corporate treasures as new technologies proliferate and collaboration increases.'
"p. 402017 World Payments ReportCapgemini and BNP Paribas

Chapter 3: Technical Hurdles for the New Payments Ecosystem (on the growing threats to cybersecurity)

'The price of increasing collaboration among industry stakeholders in the payments ecosystem could be an increase in cybersecurity vulnerabilities. [...] To ensure the highest levels of cybersecurity and the security of infrastructures in the new payments ecosystem, each ecosystem stakeholder must assess security across all the data sources and points of collaboration within the payments ecosystem...' Continue reading (page 40).

Key Regulatory and Industry Initiatives (KRIIs)
The Payments industry is feeling the impact of key regulatory industry initiatives (KRIIs). The result? Transformation of processes, business models and solutions. Continue reading...

Snippet from Capgemini's 2017 World Payments Report infographic

Join the Conversation 

Twitter Hashtag: #WPR17 

Source

'2017 World Payments Report.' Capgemini and BNP Paraibas. October 2017. Accessed October 10th, 2017. Web & PDF. 

Capgemini
A multinational information technology consulting corporation and global leader in consulting, technology and outsourcing services.

BNP Paribas
An international banking group and one of the largest banks in the world with a presence in 75 countries. 

Download 2017 World Payments Report here

Download full 2017 World Payments Report infographic here

Check out last year's 2016 World Payments Report here

Last Updated: Mar 7, 2018