To develop the liquidity of the European financial market and the competitiveness of the continent's players, the European Union is promoting two important reforms that directly affect payment solutions:
The establishment of open banking (the so-called Open Banking or PSD2 )
The systematization of instant payment within the SEPA area
Banks, Fintech companies and regulatory authorities are positioning themselves to implement these two orientations.
Sage
In this post we talk about the three revolutions in payment solutions.
Payment solutions: moving from a closed to an open ecosystem
The meaning of the finland email list transformation underway is the transition from a closed ecosystem to an open one , in which a greater variety of actors will be able to offer a broader range of services to companies.
The aim is to add a new level of innovative services to financial exchanges between companies and banks.
The exchange of data (via API¹) and transaction information between all the players that make up the payment solutions ecosystem will become the norm.
Payment solutions: new use cases in treasury
The transformation of the payment solutions ecosystem implies a break with the existing framework, particularly for the corporate treasurer. Mobility, immediacy, predictability and internationalisation become values of use whose advantages, as well as risks, companies must take advantage of.
The treasurer of a company, who is both the driving force behind innovations in payment solutions and responsible for the security of transactions, has always played a key role.
Franz ZURENGER, Chairman of the AFTE² Information Systems Commission and Director of Treasury of the Interparfum Group, expressed his perception of the announced changes in the following speech at the 1st Sage³ Business and Banking Innovation Forum:
“A new world is opening up before us. We need to reinvent ourselves. The treasurer will manage all these innovations within the company. Our task will be to choose the best services from the proposed offers.”
Payment solutions: the three revolutions
The move to an open and immediate ecosystem is causing three revolutions in payment solutions.
These will, in turn, become the three fields of work for the company treasurer in the coming months:
Real-time for payments and collections
Optimizing treasury management in a big data context
Fighting fraud and ensuring the security of financial exchanges
Sage
We will tell you what the work fields of a company treasurer will be in the coming months.
Payment solutions: an essential transformation of treasury management
Liquidity management needs to be transformed to incorporate all the factors that arise from real-time and ecosystem openness.
Indeed, the three revolutions in payment solutions represent as many opportunities as new responsibilities for businesses.
The provision of a large number of new services and the integration of their management into treasury solutions will increase the availability of financial resources and encourage growth and innovation.
The speed and internationalisation of exchanges must be accompanied by enhanced control, surveillance and security practices to ensure that resources are mobilised correctly for the benefit of the company.
Key findings
In conclusion, this perspective implies that actors in the financial value chain have to assume new responsibilities for which they must prepare.
For CFOs , this would mean an increase in advisory duties.
Financial management directors are the ones who will have to help their company's general management to adapt practices and organization.
A review of the functioning of the financial chain in the broadest sense is essential to benefit from the factors that accelerate liquidity management without increasing financial risk.
For company treasurers , this would be coupled with the goal of managing change.
The changes underway are complex: we do not know their consequences and there is still much to be invented.
The role of corporate treasurers will be to clarify the potential of technologies and translate it into concrete benefits for the organization. Their knowledge will be essential to manage the review of procedures throughout the payment chain.