Preparing for the future of cross-border payments: An action plan for banks
The options to support cross-border payments have never been richer - banks have a plethora of choices based on speed, cost, certainty, disbursement mechanism, and many other considerations. This new report from Celent looks at the factors banks should consider in planning their strategy.
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While the Swift MT to MX migration has driven every bank to upgrade their Swift connectivity, there are indications that the migration has spurred many banks to rethink cross-border payments altogether. Across the globe, over 40% of Corporate Banks are planning to upgrade or replace their cross-border payment systems in the next 18 months, and in some regions, such as MEA, this figure climbs to over 60% . This new paper from Celent considers the growing range of options available, and provides advice on the factors that banks need to consider to future-proof their solutions, including:
- the impact of regulatory initiatives, such as the “Roadmap for Enhancing Cross-border Payments” in the G20 economies
- the ways that technology and the new rails are democratizing cross-border payments and opening opportunities for mid-market players
- the need to choose the right technology partner to help navigate the complexity of choice - from digital assets to linking instant payment systems to fintechs to traditional remittance providers
- essential features to look for when selecting a solution, such as smart routing capabilities.
This report provides banks with an action plan to maximise their share of a cross-border payments market projected to reach $250T by 2027 (source: Bank of England, cross-border payments)
