Payments is a key business line for most banks, historically representing around 30% of revenues and 45% of costs. We recognise that this is a crucial question for banks. We can help. We have over 40 years experience in the payments industry, providing business consultancy, software products, system integration and outsourcing services. Our payments business consultancy service is based firmly around the premise that payments is not just a process, but a value chain that encompasses many strands.
We see that there are four strategic pillars that banks need to consider when reviewing their payments business:
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Revenue strategy. Where do my payment revenues come from and what new services do I need to provide in order to enhance these?
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Cost strategy. How will my revenue strategy impact my decisions around clearing and settlement? Will it be better for me to invest in direct clearing membership or will outsourcing in some shape or form be sufficient?
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Regulation strategy. What will be the regulatory impacts on my payments business? Will the required IT investment around reporting requirements be prohibitive or will the potential revenues make them worthwhile
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Client strategy. Corporate clients are normally the most profitable sector for a bank. Conversely this client sector is becoming more sophisticated in its requirements, demanding more services at lower prices. What precisely are their demands and how can I gain quick wins?
We use a highly sophisticated value modelling tool which enables banks to answer these and other key questions. Using financial modelling tools, we can accurately assess the cost and revenue enhancements of their chosen payments strategy.
Our vast knowledge of the payments business gives us an in-depth knowledge of industry developments and more importantly their impact on clients. Also we work across a wide range of sectors such as transport and energy meaning we can bring our unique insight of corporate requirements to our banking clients. Our business consulting service is enhanced by our extensive experience in systems integration and outsourcing which means we bring a wealth of insight to the table.
