Payments modernisation: how banks are hitting refresh

• What measures are banks using to assess their payments modernisation?
• How does the modernisation of card payment rails overlap with cloud migration?
• In what ways are banks mitigating their risk when modernising?

The way we pay is evolving at pace. Consumers in markets across the globe are moving closer to the Indian model, as they increasingly prefer to transact exclusively with their mobile phones with a direct connection to their current account. According to Statista, eCommerce is still dominated by cards, which handled 82% of online transactionsin 2021. Yet many banks continue to rely on legacy systems that aren’t built for the pace of change.

Legacy payments solutions have been the mainstay inside banks for over 20 years. However, they are often heavily customised, they run on proprietary hardware stacks and are written in older languages. The cost of maintaining them is increasing and their risk profile is also rising as the skills to support them are becoming more difficult to find in the market. While the move to modernisation of these structures is ongoing, it is important to look at what is driving these efforts and what technologies are enhancing our modern payment rails.

The efficiency and security of payment and card payment rails are a vital part of the functioning of all banks and financial institutions. It is essential that for more dynamic payments systems, legacy infrastructure is revamped and streamlined. However, refreshing a payment system is a major commitment for any financial institution and can be time intensive, costly, and pose a series of new risks.

When looking how they might use technologies like cloud to aid in updating legacy payment infrastructure, how do financial institutions decrease risk while modernising at a steady pace? Sign up to this webinar with ACI experts to learn more.