SIBOS: TECHNOLOGY & PAYMENTS Clear direction: Wider industry applications are proving the value of blockchain
“With all the initiatives to go digital and cashless, why are crossborder payments still such an issue for banks? With DLT, they don’t have to be so cumbersome anymore,” adds Reker. “We’re seeing fintechs like TransferWise and others making great inroads into the market, and banks need to realise they need to move into this space. “Today’s systems are based on the economy we had in the 20th Century, yet the world has dramatically changed. The processes need to be streamlined, with central banks playing a stronger role and helping the private banks to be more efficient. We see from online retail payment providers like PayPal, which have managed to get a huge market share, how efficient things can be. Similar needs to happen on the corporate payments side.” It’s not all about blockchain, though. “We don’t want to provide only tools to our customers. We want to provide intelligence solutions, which could take the form of a chatbot, machine learning or blockchain to improve existing processes,” says Reker. But the sudden growth in blockchain’s potential value is resulting in an ever-more crowded operating space.
TheFintechMagazine | Issue 13
SAP is far from being on its own in announcing new solutions in the area of corporate finance.
Raising the stakes In August, the first major US bank, PNC, began using Ripple’s RippleNet DLT for crossborder payments. As a result, PNC’s business clients can use the system to receive real-time international payments. Meanwhile, computer giant IBM has developed a blockchain solution for crossborder payments by financial institutions, using the open source Hyperledger Fabric platform and partnering with open source blockchain network
With all the initiatives to go digital and cashless, why are crossborder payments still such an issue for banks? With DLT they don’t have to be so cumbersome
Stellar.org and South Pacific financial services provider Klickex Group . “Corporates now expect the same digital experience as they receive in their private lives. The experience economy is critical going forward, because if you don’t provide a good customer experience, you're losing your customers very fast,” says Reker, “and that means hyperconnectivity at all levels. It’s key to driving seamless, real-time, tailor-made offerings at the right point in time. If you don’t have the connectivity, you cannot provide all the things customers expect today from a commercial bank. “Think how business is being done today. There are all these emerging ecosystems and platform networks and that's exactly where the banks need to be. “In the new digital world, there might not even be an industry called banking anymore,” he speculates. “Look at how the fintechs entered the retail banking market. They’re now supporting certain aspects of commercial banking as well and it’s absolutely crucial that banks and all types of software providers, like us, collaborate intelligently and be open to integrating with them. “If we can jointly provide a better service, we will all be successful.” www.fintech.finance
Fintech Finance presents: The Fintech Magazine Issue 13