Misys plc (FTSE: MSY.L), the global application software and services company, today announced the results of its third annual Trends in Transaction Banking survey. From the responses of more than 120 respondents across 45 countries, the theme of reducing IT complexity and costs remain the dominant concerns of transaction bankers.
77% of them stating that they had started consolidating at least trade finance and cash management businesses to achieve this goal. At the same time, 45% describe their infrastructure as âmultiple core processing systemsâ, underlining that the industry has a long way to go before true consolidation happens.
Commenting on the results of the survey, Olivier Berthier, Global Solutions Director, Transaction Banking, Misys, states: âThis is the third survey we have done in this area and each time we have seen an increase in the proportion of banks bringing their cash, trade and payments businesses under one umbrella, across all regions and from banks of all sizes. However, few have actually successfully integrated their online channels, back-office operations and payments processing fully. In both the survey and our ongoing exchanges with financial institutions, the need to reduce costs, increase the return on capital, improve customer service, and rely on technology as an enabler, all remain key Transaction Banking trends this year.â
Other highlights of the survey include:
â¢ 43% listed âonline channel developmentâ as the top transaction banking priority for next year, reflecting the trend towards enhancements of the online delivery of cash management and trade finance in a unified fashion.
â¢ âAdding new products and servicesâ remained the top strategic focus for banks managing their transaction and cash management business over the next three years, gathering 26% of respondents.
â¢ 35% listed âSimplified process for making changes to payment standard and rules across all systemsâ as their top priority.
â¢ 34% of those surveyed listed âIncreasing IT and system complexityâ as the major challenge facing their bankâs transaction banking group, followed closely by 33% who see âIncreasing regulationâ as the major challenge.
â¢ Demands from corporates to be able to check payment flows manifested in 25% of those surveyed stating âReal-time payment trackingâ was their top priority in payments.
â¢ âTrade services functionalityâ narrowly beat âCash flow forecasting toolsâ in the priority list with 14% and 13%, respectively, confirming the prominent status and importance of trade finance in a bankâs service offering today.
â¢ Almost half those surveyed, 45%, describe their infrastructure as âMultiple core processing systemsâ, echoing well the growing interest in payment hubs to help banks centralise and streamline their payment processes.