12 October 2004
A new poll shows that 80 per cent of corporate customers feel banks have not yet addressed the liability issues of payments outsourcing
Nearly two-thirds of the global financial services industry recognises that banks need to outsource processes to remain competitive, but more than 80 per cent of their corporate customers would be concerned if payments processes were outsourced concludes a new poll on behalf of LogicaCMG. Furthermore it would prompt just under one fifth of those corporate customers to switch bank.
This poll, conducted by gtnews, highlights the dilemma faced by many banks in today's climate. With falling revenues and rising costs many will not be able to stay in the payments business unless they outsource parts of their operations. It is therefore vital that banks address their customers' concerns before embarking on an outsourcing strategy.
Jerry Norton, director, strategy, global financial services, LogicaCMG, said: "It is clear that banks’ corporate customers have concerns over liability and the banks need to determine how they improve their customers' confidence. Most importantly, they need to provide a cost-effective payments service. Despite the concerns of corporate customers, the poll shows that 45 per cent of them recognise that banks need to outsource core processes to remain competitive.
"Payments outsourcing is growing – banks realise that this can reduce overheads and bring new services to market quicker. LogicaCMG’s All Payments Solution provides a methodology which can highlight for banks the areas of their business that may be outsourced and can provide for customers the levels of confidence they demand regarding liability and risk management. It also provides the business components to enable transformation of the cost of operation within a bank."
LogicaCMG will be demonstrating its payments expertise, the LogicaCMG Payments Architecture (LPA), at stand D068 during Sibos 2004, which takes place 11-15 October in Atlanta, USA. The LPA applies to all payments, high and low value, supporting a range of business strategies for banks and central market infrastructures to enable them to meet the changing demands of customers and regulators.
Additionally at Sibos, Terry Quigley, head of global financial messaging, LogicaCMG, will moderate the seminar 'Payments services in the digital world. Are you getting what you pay for?' on 12 October at 14:00.