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Accelerating Adoption of Immediate Payments

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A few months ago, 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 working with The Clearing House (TCH) and ClearXchange (now known as Zelle) to help our customers embrace new immediate payments initiatives.

In keeping with plans announced at Sibos in September, we have now officially launched IBM Financial Transaction Manager (FTM) for Immediate Payments. Leveraging our experience with UK Faster Payments and Singapore FAST, we are taking the next step to help our clients offer this payments scheme to their customer base. IBM FTM for Immediate Payments runs on multiple platforms, including zOS, and supports immediate payments scheme standards through our ISO20022-compliant platform. Our solution is now being extended to provide support for SEPA Instant Credit Transfer and other new and existing domestic and regional immediate payments initiatives. In parallel, we will have Zelle processing real-time payments for a major US bank in the beginning of 2017.

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. One partnership that I would like to point out is our work with Scotiabank over the last few years. As a result of this collaboration, Scotia has lowered TCO by 33%, while shortening time to market for new payment products with the help of IBM FTM as the centralized payments hub. Check out the case study for more details about this transformation.

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: http://www-03.ibm.com/software/products/en/financial-transaction-manager

 

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

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