target audience: TECH BUYER Publication date: Nov 2023 - Document type: IDC Perspective - Doc Document number: # US50795923
Instant Payments: Reshaping Corporate Banks' Business Models, Enhancing Tools and Processes to Exploit and Offer IP Benefits
This IDC Perspective discusses how instant payments are a compelling development in real-time banking transformation to cope with competition and meet customer expectations. Under some jurisdictions, instant payments represent a regulatory requirement with clear deadlines for transferring funds. Instant payments enable corporate banks to offer faster money turnaround, supporting more efficient services and processes as well as enhanced cooperation with partners to offer value-added services. The document also describes the hurdles related to fraud risks, the cost of infrastructure, and process updates to be able to offer IP service 24 x 7. IDC believes corporate banks should leverage the benefits of IP adoption, which is an essential element to remain competitive and foster digital real-time banking.
"The question is not about whether to adopt and offer instant payments to corporates, but how to do it well," said Maria Adele Di Comite, research director, IDC Financial Insights. "Recognizing IPs are not just another payment rail, but one that will reshape corporate banks' business models is the first step in the right direction, and many changes will be needed to fully exploit IPs' potential."