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Data for today’s episode is provided by Mercator Advisory Group’s report – North American PaymentsInsights: Prepaid Cards: Shifting Purchase Channels
Four Different Roles for Platform Business Models:
- The growth in platform approaches in banking has been generally slow to develop, but has been given a boost by the PSD2 directive and success among challenger and neo-banks.
- Integrators allow for the melding together of products and services through open APIs and includes companies such as Boomi and Jitterbit.
- Providers allow for others to create businesses by provisioning end-to-end services. In the Banking-as-aService space this would include BBVA, Fidor and Green Dot.
- Specialists focus on functional or technological activities in the business process. Examples of vendors in this area include PayStand and Volante.
- Orchestrators operate across an ecosystem, enabling mass interaction among participants. Ant Financial is one of the early successful examples of this model.
- Two reasons banks are embracing cloud: cloud providers address their concerns and cloud providers have been educating regulators about their security stacks.
In a year unlike any other, the financial services industry has done a very good job of keeping their organizations focused on clients, many of whom are under existential threat from ongoing pandemic-related policy decisions and the aftershocks of business shutdowns. But what can we expect as we move into 2021? What has changed and will these things be permanent or fade away as COVID also fades?
In this research report, Outlook 2021: Commercial and Enterprise Payments, Mercator Advisory Group answers these and other questions. In commercial banking and payments, broad and rapid change from any given year to the next is not typically to be expected. There may be certain aspects of the business where developments occur at a different pace than others, such as adjustments for some regulatory requirement, but in terms of overall themes the pace of change tends to occur over several years. However, acceleration is certainly occurring and technology gains are causing further change. This Mercator Advisory Group research report is our annual look at what we expect during the next year.
Mercator Advisory Group’s latest research report provides a direct view into the latest trends in corporate banking and payments as a pandemic is underway and a brave new world looms ahead. The report breaks out the key success factors into four themes with several sub-categories in order to more easily digest the scope of change underway and expected going forward.
“Looking across the industry during this interesting year, we of course see the acceleration of digital systems and process adoption, something that has been underway for several years but is at a whole new level now given the need to adapt to working realities,” commented Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service, author of the report, “and this is likely to be an ongoing trend given the availability of new technology and corporate needs to better manage cash.”