Key trends and issues in adopting instant payments (Part 1)
Every year at CGI, we conduct research on the services banks offer their customers.
Every year at CGI, we conduct research on the services banks offer their customers—whether consumers or corporates—comparing the customer’s perspective with that of the bank. This year, we sponsored additional research focused specifically on payments. With the worldwide move to instant (or real-time) payments, we thought it would be timely to explore some of the key trends and issues in adopting instant payments.
In March and April of this year, CGI sponsored a survey[C1] by the Financial Services Club—a leading European network for senior financial services executives—that solicited input from 360 club members, including bankers, payment processors, corporates, consultancies, academics and government representatives. In this first blog on the research, I’m pleased to share some of the highlights.
Our intention with the survey was to get a clearer picture of where the payments market is headed over the next five years, including a look at possible new revenue streams for banks, what technologies will dominate and what are the most pressing instant payments issues. The results have been very interesting.
What payment instruments will dominate in 2022?
First, we explored the nature of payment instruments themselves and which are most likely to dominate by 2022. The survey findings show that real-time account-to-account transfers will likely overtake card payments within the next five years. This is both a threat and an opportunity for banks. While card business growth and revenues may decline, new account-to-account transfer business will open up. The research also showed that both cash and checks will fall rapidly—a trend that’s already taking place in several countries.