Fiserv is looking to gain edge by making a deliberate foray into transforming financial institutions’ payments infrastructure, offering them broader scope for intelligent data processing.
Fiserv’s interest in the payments sector is not new, given its efforts to acquire Monitise, a UK-based mobile banking vendor in June earlier this year. Currently, Fiserv is aiming at merging its payment capabilities with Dovetail’s real-time payments platform. Dovetail has pioneered the concept of ‘payment services hub’, and offers a fully integrated platform for payments processing. The payment services hub allows online personalization of processing for accounts and individual customers, as well as product segments.
Martin Coen, the CEO of Dovetail emphasises that the company is now focusing on strengthening its digital transformation strategies to provide back-office payments renovation. As real-time payments put additional pressure on legacy bank infrastructures, the need to strengthen and modernise back-office payments infrastructure has grown.
Following the trend, the company has embarked upon developing synchronous APIs for banks, blocking the caller until it returns, thereby offering new real-time interactive services to customers and enabling bank managers to personalise services for individual account holders and clients. Moreover, with the new enhanced platform, Fiserv will be able to provide services and solutions both on-premise and as a cloud-based service.
Payment systems are pivotal in any economy given their role to facilitate the intermediation process, which is key in achieving financial capability. Though billions of people in both emerging and developing markets have mobile phones, they do not have bank accounts.
Consequently, mobile money is filling this gap by offering financial services and payments over mobile phones from simple individual-to-individual transfers to more complex banking services. Additionally, banks are aggressively targeting the market by incorporating machine learning and artificial intelligence into their mobile banking apps to authenticate mobile banking users.
For example, Barclays became UK’s first high-street bank to integrate payments in its mobile banking app using Apple’s virtual assistant, Siri, recently. Likewise, Bank of America is conducting a trial and exploring areas such as Iris scanning capabilities for Samsung’s new smartphones as a means to authenticate mobile banking users. The bank is also making further claims to explore facial and voice recognition for user authentication.
2017 is expected to be a break-through year for instant digital payment which facilitates instant validation, acknowledgement, and transmission of transacted data between the point-of-sale and merchants system. Additionally, an innovative leap is currently taking place with the growing prevalence of social media and FinTech.
As a result, many banking services are being redefined. This includes technologies related to e-commerce, mobile payments, crowdlending, crowdinvesting, and asset management. The result will be a future in which many services are only offered electronically. Moreover, countless finance apps prevalent today, generate added value for clients.
These can be used for multiple purposes including query master data, receive business news, create portfolios, enter payments, draw up charts, and convert currencies, among others.