In this new era of technology and globalization, almost everything can be solved in your hands. From communication, information and even payment, just name it! It’s amazing how everything revolves around us in a fast pace when we least expected to live in a way we are now. Over the last few decades, people have been keeping their money under the pillow as it’s the safest way for them to keep their money.

However, with the arrival and availability of ATM machines, people thought it is pretty much awesome to have such complex technologies. Due to the dynamic changes of technologies, people’s demands and behaviours are also changing. As a result, they expect more sophisticated and better way to serve their needs.

Payment Revolution
FirmBee / Pixabay
Payment Revolution

Today, by just owning a smartphone, it gives you many ways to handle your daily activities. Especially for payment. Contactless payment methods are growing and seem to attract many Asian consumers from China, Singapore, Philippine and Indonesia.

Security, Control and Compliance

Since it is common to pay through a smartphone, people are expecting a financial institution to promise them that all contactless transactions being made are secure. Consumers keen on finding a safer way to handle their transactions. People always think that banks are the one who responsible to comply customers information.

Introduction of PSD2

That is why by January 2018, banks must consent to the EU’s second Payment Services Directive (PSD2). To make it simple, PSD2 empowers bank clients, both buyers and organizations, to utilize outsider suppliers to deal with their funds. Sooner rather than later, you might utilize Facebook or Google to pay your bills, making P2P exchanges and break down your spending, while as yet having your cash securely put in your present financial balance.

Banks are committed to give these outside suppliers access to their client’s records through open APIs (application program interface). This will empower outsiders to fabricate monetary administrations on top of bank’s information and foundation

At last, we are entering the advanced time of payments, where the controllers are compelling for computerized change through changes. For example, PSD2, which influences all aspects of the payment value chain.

In any case, if banks give all their utmost efforts  in competing, they could probably offer new, inventive administrations, which could drive many benefits. Banks have a one of a kind chance to play each role of bank, Payment Initiation Service Provider (PISP) and Account Information Service Provider (AISP).

Seek and grab the chances!

PSD2 plays an important role as creation of profit for banks to open new businesses instead of solely taking responsibilities as a compliance. On the other hand, banks have the chance to utilize PSD2 to sustain their good fortune and look for organizations to develop rapidly. Other than that, it only requires little to no effort, to compete with start up businesses.

The changes and revolutions of technology are promising for the eventual fate of keeping money and getting the nuts and bolts right, will enhance every client’s saving money involvement over the long haul. In any case, banks and money related foundations mustn’t lay on their trees lightly. Progressions likewise mean the higher doors are opened for new market participants.

Be creative

Thus, as technology gets innovated everyday, any financial institution should be creative and effective to pick up the speed of digitalisation. At the same time, they must  be steady and strong. Key factors of becoming a successful company is to plan properly in details from the beginning. With strategic planning and preparation, any company will surely move in a right track and secure their businesses.

Are you ready for the next phase of the payment revolution?

In this new era of technology and globalization, almost everything can be solved in your hands. From communication, information and even payment, just name it! It’s amazing how everything revolves around us in a fast pace when we least expected to live in a way we are now. Over the last few decades, people have been keeping their money under the pillow as it’s the safest way for them to keep their money.

However, with the arrival and availability of ATM machines, people thought it is pretty much awesome to have such complex technologies. Due to the dynamic changes of technologies, people’s demands and behaviours are also changing. As a result, they expect more sophisticated and better way to serve their needs.

Today, by just owning a smartphone, it gives you many ways to handle your daily activities. Especially for payment. Contactless payment methods are growing and seem to attract many Asian consumers from China, Singapore, Philippine and Indonesia.

Security, Control and Compliance

Since it is common to pay through a smartphone, people are expecting a financial institution to promise them that all contactless transactions being made are secure. Consumers keen on finding a safer way to handle their transactions. People always think that banks are the one who responsible to comply customers information.

Introduction of PSD2

That is why by January 2018, banks must consent to the EU’s second Payment Services Directive (PSD2). To make it simple, PSD2 empowers bank clients, both buyers and organizations, to utilize outsider suppliers to deal with their funds. Sooner rather than later, you might utilize Facebook or Google to pay your bills, making P2P exchanges and break down your spending, while as yet having your cash securely put in your present financial balance.

Banks are committed to give these outside suppliers access to their client’s records through open APIs (application program interface). This will empower outsiders to fabricate monetary administrations on top of bank’s information and foundation

At last, we are entering the advanced time of payments, where the controllers are compelling for computerized change through changes. For example, PSD2, which influences all aspects of the payment value chain.

In any case, if banks give all their utmost efforts  in competing, they could probably offer new, inventive administrations, which could drive many benefits. Banks have a one of a kind chance to play each role of bank, Payment Initiation Service Provider (PISP) and Account Information Service Provider (AISP).

Seek and grab the chances!

PSD2 plays an important role as creation of profit for banks to open new businesses instead of solely taking responsibilities as a compliance. On the other hand, banks have the chance to utilize PSD2 to sustain their good fortune and look for organizations to develop rapidly. Other than that, it only requires little to no effort, to compete with start up businesses.

The changes and revolutions of technology are promising for the eventual fate of keeping money and getting the nuts and bolts right, will enhance every client’s saving money involvement over the long haul. In any case, banks and money related foundations mustn’t lay on their trees lightly. Progressions likewise mean the higher doors are opened for new market participants.

Be creative

Thus, as technology gets innovated everyday, any financial institution should be creative and effective to pick up the speed of digitalisation. At the same time, they must  be steady and strong. Key factors of becoming a successful company is to plan properly in details from the beginning. With strategic planning and preparation, any company will surely move in a right track and secure their businesses.

Article by Azma Farhana