Payments: go fast, go global

A global real-time payments network may sound stuff of fantasy, but with the growing presence of domestic systems around the globe with the potential for interconnectivity, according to Luke Perkins, Executive Director and Head of Global Cross Border Payments Product at ANZ, it’s not as unrealistic as it first sounds.

“The concept around cross-border, real time payments is not one too far away from us” he told a recent ANZ customer call.

Perkins said while there are some inhibiting factors, there was strong ambition within the industry to see such international access come to fruition. It would help solve many real customer problems, he said, particularly among multi-national groups.

“Things like cut-off times and the interaction we [in Australia] have with Northern Hemisphere, and even some Asian markets as well, mean the actual customer experience needs to be longer than what it [is], in my opinion,” he said.

Perkins made the comments on an ANZ customer call also featuring Nigel Dobson, Head of Banking Services and Mike Lim, Head of Transaction Banking for Financial Institutions at ANZ.  You can listen to an edited version of the conversation below.

For such a system to work – or any kind of RTP system, global or not - Dobson said many financial services groups need to step up for their customers, particularly around capability and infrastructure.

“What it also brings is this concept of ‘how resilient operationally are you?’ in order to fulfil an obligation that you will be on 24/7,” he said.

“Because the demands of 24/7 commerce are so extraordinary and such a step change.”

Dobson said participating businesses would need to change their operating model and acknowledge “you have to uplift your infrastructure and your human infrastructure as well”.

Perkins said with the access and speed RTP network provide also comes the opportunity for greater risk. At ANZ, the group is “putting just as much if not more emphasis into shoring up our risk environment,” he said.

“For me it's of equal importance," Perkins said. “We want to make sure that not only do we have an available service, but that it is secure, reliable and consistent for customers, and we can assure customers they're safe in transacting with us.”

The conversation also touched on the application machine learning around fraud and transaction security. Listen to the podcast above to find out more.

Jenny Hutchings is Head of Banks, Transaction Banking for Financial Institutions at ANZ