IT Complexity, Costs Remain Dominant Concerns for Transaction Bankers

The theme of reducing IT complexity and costs remain the dominant concerns of transaction bankers, according to a Misys survey that gathered responses of more than 120 respondents across 45 countries.


Over 77% of respondents stated 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 "multiple core processing systems", underlining that the industry has a long way to go before true consolidation happens.


The survey highlights that just under a half of respondents ( 43%) listed "online channel development" 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.


"Adding new products and services" remained the top strategic focus for banks managing their transaction and cash management business over the next three years, gathering 26% of respondents.


"Simplified process for making changes to payment standard and rules across all systems" was listed by 35% as their top priority.


Of those surveyed, 34% listed "increasing IT and system complexity" as the major challenge facing their bank's transaction banking group, followed closely by 33% who see "Increasing regulation" as the major challenge.


Demands from corporates to be able to check payment flows manifested in 25% of those surveyed stating "real-time payment tracking" was their top priority in payments.


"Trade services functionality" narrowly beat "cash flow forecasting tools" in the priority list with 14% and 13%, respectively, confirming the prominent status and importance of trade finance in a bank's service offering today.


Almost half those surveyed, 45%, describe their infrastructure as "multiple core processing systems", echoing well the growing interest in payment hubs to help banks centralise and streamline their payment processes.





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