Finastra hosted its annual U.S. Payments Business Forum in Fort Lauderdale, Florida from April 2–4, bringing together financial institution leaders from across the country. The forum focused on key industry trends, market shifts, regulatory updates, and the critical role of innovation and customer-centric strategies in the evolving payments landscape.
Highlights and Insights
1. Customer-Centric Modernization is Essential
- The payments landscape is changing rapidly due to evolving customer expectations and market demands.
- Banks must prioritize modernization strategies that place customer needs at the center of technology investments.
- Collaboration and open dialogue are vital to ensuring institutions stay competitive and informed.
2. Migration to Cloud and SaaS is Crucial
- 92% of banks plan to increase investment in payment tech.
- 80% cite outdated legacy systems as a major barrier.
- Hosted and SaaS-based platforms enable better customer experiences and greater agility.
- Customers increasingly expect best-in-class digital experiences and are willing to switch providers to get them.
3. Adopt an Offensive Strategy in Payments Tech
- 89% of businesses are investing in payment technologies.
- Banks need to proactively capture this momentum or risk losing clients to fintech alternatives.
- 39% of corporate treasurers would switch banks for better automation tools.
- Only 18% of businesses are fully satisfied with current payment reporting services.
4. Prepare for ISO20022 Standardization
- Although the ISO20022 deadline is now extended to July, institutions must act now.
- 90% of U.S. financial institutions are on track; nearly half have finished third-party testing.
- Bridging the remaining readiness gap is critical over the coming months.
5. Partnership Ecosystems Drive Innovation
- Embracing fintech partnerships enhances the overall value proposition.
- Partner ecosystems help institutions innovate faster and tailor services to meet diverse client needs.
- Strong partner support can attract and retain a more loyal customer base.
The 2024 U.S. Payments Business Forum reaffirmed the pressing need for financial institutions to modernize their infrastructure, embrace cloud and automation, and form strategic partnerships to stay competitive. By focusing on customer demands and leveraging technological innovation, banks can future-proof their services and thrive in an increasingly digital marketplace. As Barry Rodrigues from Finastra noted, sustained investment and collaboration are essential for long-term success.
