Cloud technologies play a significant role in facilitating the global distribution and interconnection that make financial services easy to access. The cloud lets a financial services firm quickly expand its coverage to a new geography, optimize processing and data management for that location and remotely monitor performance without the need for significant capital investment.
The recent unveiling of the Greater Bay Area blueprint by China’s State Council has ignited lots of conversation across Asia-Pacific about the impact of emerging technologies, the entrance of new players and the importance of connectivity and expanded partnerships with existing providers to support the growth of technology in the South China region.
Real-time interactions are the gold standard for today’s digital-enabled consumer experience. Yet retail banking and insurance firms are struggling to keep up with these high demands because their traditional IT infrastructures hold them back from making progress in incorporating digital technologies and competing against new disruptors.
Everyone is talking about digital transformation, but also looking at it from different perspectives. The forum was special as it allowed for a wider understanding to be developed by embracing and integrating the views of many cross-industry players. Part one of this two-part blog covers four key takeaways that stood out from the discussion at the event.
To remedy this embarrassment and bring a greater degree of security, the payment card industry as well as real-time payment platforms are moving to tokenization—a process by which a surrogate value in the form of a series of randomly-generated numbers, known as a “token,” replaces the primary account number.
The prospect of a global cashless economy is not too distant a reality. Global digital payments are predicted to increase on average by 10.9% reaching close to 726 billion transactions by 2020, according to the World Payments Report 2017. The world’s top cashless economy is currently Canada, with Sweden coming in at second and the UK at third (Forex Bonuses). Chinese cities are already emerging as early examples of cashless economies, with digital payments on mobile apps such as WeChat and Alipay taking precedent for mobile payment transactions. And Sub-Saharan Africa is a huge market for mobile payments — the GSMA reports that more than 40% of the adult population is using mobile money on an active basis in seven Sub-Saharan African countries.
What does the digital edge have to do with payments? The answer lies in the fact that the world has gone digital, which is changing almost every aspect of how payments are processed. The digital edge is enabling payment providers to connect to their customers where they are, to deliver services that are fast and secure.
Capital market companies have been one of the more cautious adopters of the cloud. However, increased pressure to reduce costs, improve margins and realize greater efficiencies are forcing today’s institutional investing firms to move their critical applications and data into the cloud.
A future with digital wallets must be a highly interconnected future. Tasks as basic as buying a coffee require a community of service providers working together instantly and seamlessly. Direct and secure interconnection between the multiple parties involved is essential for high-performance transactions, customer satisfaction and digital wallet growth.
To survive, electronic trading firms must adapt. And there is a way for companies to architect their IT to find the agility needed to continue to deliver low latency, maximize collaboration, gain new data insight – all while staying ahead of evolving regulatory requirements.