Payments & Transactions

Accelerating adoption of immediate payments

Share this post:

In a recently blog, I wrote about the pressures on financial institutions to offer immediate payments processing to their customers.

“Banks should plan for a real-time everything in the future – more than just a payment type, real-time will underpin everything digital that a bank does,” states Gareth Lodge, senior analyst at Celent.*

Understanding the complexity of this task, IBM has been actively working with The Clearing House and the Zelle network to figure out how to help customers manage these changing market dynamics. At Money20/20, IBM announced that it has integrated its Financial Transaction Manager (FTM) software within Zelle’s payment network. This collaboration allows any bank using FTM to access Zelle to send and receive customers’ money in seconds. Over 50 financial institutions have already signed on to incorporate this app into their services.

The Zelle collaboration expands on IBM’s experience with UK Faster Payments and Singapore FAST and extends our solution to provide support for SEPA Instant Credit Transfer and other new and existing domestic and regional immediate payments initiatives. IBM FTM for Immediate Payments runs on multiple platforms, including z/OS, and supports immediate payments scheme standards through our ISO20022-compliant platform.

IBM also announced a new per-payment pricing option for programs running in support of IBM FTM for z/OS. This brings lower operating costs to the volatile payment processing by tying operational costs directly to business value by basing the price of the solution on the number of production payments that are processed, rather than capacity that is used to process them.

Operational impact of a bank’s legacy infrastructure

Our experience shows that careful consideration has to be given to the operational impact of a bank’s legacy infrastructure. Creating a partnership and close collaboration with our customers is key to successful modernization of payments technology at a bank. Examples of IBM’s work with key industry players to improve existing payments systems, as opposed to more costly change include:

  • The Federal Reserve Bank of Atlanta will use IBM’s FTM technology to process their ACH payments, which measures up to 100 million transactions a day.
  • Scotiabank selected IBM FTM as the heart of its new centralized payments processing hub and was able to low total cost of ownership (TCO) by 33%, while shortening time to market for new payment products.

These are truly exciting times in the payment industry, and IBM is ready to help banks meet current and future challenges. To find out more, visit  www.ibm.com/ibm-ftm

*Faster than a Speeding Payment, Gareth Lodge, Celent Research Report (June 2016)

Director, WW Payments Solutions

More Payments & Transactions stories

Transforming IT banking Infrastructure and IT department mindsets

Many banks and financial services are starting or continuing their transition to a customer-centric model of doing business. To do this, companies are rigorously evaluating the right systems and processes needed to support their transformation. These new systems need to handle very large and variable workloads, with strong security and cost-efficiency. But it’s not a […]

Continue reading

Continuing the path to real-time payments innovation

Since the 1960’s, IBM has worked with banks to help simplify their payment operations by upgrading payment processes, integrating existing silos and renovating legacy systems. In today’s drastically changing payment landscape, banks now wrestle with implementing new real-time payment schemes while satisfying new regulatory mandates and the demands of industry bodies, customer and merchants. These […]

Continue reading

Blockchain for KYC: Game-changing RegTech innovation

IBM RegTech Innovations. One of the best things about working at IBM—and in the RegTech field in particular—is meeting daily with the engineers and developers who are driving technological innovation in the financial industry. Consider, for example, the blockchain space. While blockchain’s decentralized, distributed-ledger technology is most popularly known as the basis for cryptocurrencies such […]

Continue reading