The report, Innovation in Payments: The Future is Fintech, examines the growing influence of ‘fintech’ in transaction banking.
According to industry data, more fintech companies are graduating from the ranks of start-ups to multi-billion dollar-listed companies, leading to the creation of cutting-edge technology that could transform how consumers and clients initiate and process transactions.
“The fintech era is upon us and banks shouldn't merely be mindful of this; they should also have a clear strategy in place in order to adapt to and benefit from fintech-fuelled changes,” explained Ian Stewart, CEO of BNY Mellon's treasury services business.
“While the banking industry is traditionally conservative about change, any hesitation or ambivalence here could be costly. In order to position themselves at the centre of the payments industry of tomorrow, banks must act today to understand, interact with, and cherry-pick from the full smorgasbord of fintech developments.”
BNY Mellon’s report examines what strategies banks should adopt in order to understand and access fintech-fuelled developments, and so future-proof their long-held position at the heart of global payments.
Steward said: “BNY Mellon is immersed in the fintech sector. We are focusing on and investing a great deal of time in exploring the opportunities it has to offer the global payments arena in areas such as the potential to reengineer payments, including blockchain and big data technology. We are also working closely with fintech firms to explore the use of new technology capabilities.”