As the payments landscape is reshaped in real time, it is becoming imperative for banks and financial institutions to face the challenges posed by financial fragmentation. A recent report, ‘Growth at a Crossroads: Measuring the Cost of Financial Fragmentation’ from Economist Impact, supported by Swift, illustrates the urgent need for innovation and collaboration in the payments ecosystem amidst rising instability in global finance. Understanding Financial Fragmentation Global economic integration, fuelled by international trade and cross-border transactions, underpins the livelihoods of millions. However, a more fragmented world has emerged due to geopolitical tensions, technological decoupling, and regional isolationism. This fragmentation threatens…
Author: Zhenya Winter, Head of Global Marketing – Financial Messaging at Bottomline
Switzerland took a significant step forward in the digital payments landscape with the successful launch of SIC Instant Payments (SIC IP) on 20 August 2024. As part of Phase 1, sixty-three financial institutions, covering more than 95% of Swiss retail payment transactions, have been integrated into the system. Notably, currently six banks can now both send and receive instant payments, and transaction volumes have already exceeded expectations, with up to 10,000 transactions processed daily, according to SIX. However, as Phase 2 approaches, challenges remain for the 180 financial institutions (FIs) in Group 2 that need to implement SIC IP by…
Market dynamics in the financial services business rarely come on with an urgency attached. After all, the first Open Banking project in the UK dates back to 2016. Formal PSD2 discussions started in 2013. Therefore, it’s difficult to argue that financial institutions didn’t have advance warning about the changes that had the potential to significantly impact their business. But this is not the case for the EU banking sector in 2022. Regulations, deadlines and new technology combined make this a year to make or break propositions. ISO 20022 messaging for example, needs to be in place by November. The Open…