Legislative changes have the ability to affect any sector – particularly as rapid changes in technology alter the landscape for both businesses and customers.
For many companies – particularly banks – it’s easy to approach the preparation for such changes as ‘compliance projects’, dictated by minimum requirements and tight timelines. But this misses an important opportunity for both banks and customers.
Indeed, it is important banks look beyond that component in isolation and seek to develop new products and services to bring the spirit of such legislation to life.
A case in point is the New Payments Platform. Launched in February 2018, the NPP was a material project for all banks to amend systems and processes in order to accommodate a new clearing stream.
For many, the prime focus was to be ready on or near day one to provide customers with the initial attractive service of real-time, data-rich, 24/7 payment functionality.
It would not be a surprise to hear the banks’ relief at having achieved this goal and a collective pause for breath.
But as businesses and consumers start to embed this in their way of operating, the scope exists to develop new products and services - and distribute them via new channels on top of these payment rails – in a bid to improve the end-customer experience and commercialise the core investment.
The first two such overlay services being pursued at an industry level are ’request to pay’ and ‘payment with attachment’, both of which can present an opportunity for banks to develop or customise solutions around specific industry use cases.
In exploring such opportunities, the Australian market can learn from the experiences of other geographies where instantaneous or near-instant payments are already quite established.
In fact using the connectivity of real-time payment systems to produce an instantaneous cross-border payment is another potential solution which would solve a longstanding customer pain point.