3. Market Influences
• Customers begin to expect real-time
processing of financial transactions; driven
by staggering growth in mobile and
digital channels.
• New, innovative payment capabilities are
rapidly evolving, driven by start-ups and
non-bank FIs.
• Coalition formed by the nation’s leading
merchants to create a new consumer
payments model; represent $1T in consumer
spending; 17% of all U.S. retail sales.
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4. Value Proposition
• Because of market dynamics, FIs are evaluating Payment Hubs to
transform silo-based operating environments:
Cost reduction, Demand for
Proliferation of improved, Commoditization
Regulation and mandates.
new products personalized of payment
compliance Lower pricing
and channels customer products
mandates experience
Limited ability
Duplicated High costs of Inconsistent
to develop Redundancy in
functionalities systems Customer
single view of operations
and services maintenance Experience
customer
• Payment Hubs can unlock business value in the areas of customer
experience, cost reduction, risk management and innovation/speed
to market.
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5. Strategic Imperative
Challenges Changes
Aging technology platforms Channel preference
Speed to market Regulatory environment
Payments fee income Channel convergence
Risk Management New entrants
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7. Payments Hub Implementation
Platform/Operating Model/Organization
• Avoid ‘boiling the ocean’: Think Big, Start Small
– Incremental
• Phased approach of critical components
– Messaging, Systems, Workflow
– Liquidity Monitoring/Management
– Clearing and Settlement
– Risk/Regulatory
– Reporting/Analytics
– Client Service
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8. Implementation Components
• Strategic Placement
– Global process share or Corporate Utility
– Business continuity and recovery strategy
– Location strategy
– Roles and responsibilities
• Identify and assign
– Ownership
– Contributor
– Participant
• Implementation Plans
– Coexistence/Migration
– Deployment
– Training
– Communication
• Change Management
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9. Lessons Learned
• Identify a senior business leader empowered to drive the
corporate strategy across organizational boundaries
• Know where to focus first
– Agreement on approach and scope is critical
• Create a fact-based assessment of the current
product/services, operating and systems environment (s)
– Identify end-to-end process owners/SMEs
• Ensure governance, support models and prioritization
processes are well defined
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10. Lessons Learned
• Ensure consistent client experience across business lines with
single point of entry
• Build for the future leveraging an enterprise platform
– Requires enterprise approach across products, channels and lines of
business
• Develop cross line of business communication plans
– Keep key stakeholders informed of success and challenges; problems
don’t age well!
• Embrace change…
– It’s a journey…not a destination!
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