The reports cite the need for a holistic suite of solutions to unlock the next generation of the payments ecosystem and the evolution of digital currencies
As BNY Mellon continues to be at the leading edge of helping clients and partners navigate innovations in payments and the future of digital currencies, the Bank announced the release of two research papers focused on the range of payment channels and capabilities that are being made available, and what their impact will mean for clients in the future. The reports highlight that innovations in payments and digital currencies will ultimately allow banks to make domestic and cross-border transactions faster, more frictionless, efficient, transparent and cost-effective; and also discuss how firms need to achieve interoperability among both old and new solutions to ensure streamlined transactions.
Multiple Paths, One Destination, examines how industry initiatives and new technologies will ultimately enable money to be moved instantaneously, 24/7/365 and with full transparency. A Spotlight on Digital Currencies focuses on how digital currencies could change the payment model. It explores how the coexistence of digital tokens and fiat money could meet a broader array of client needs; and change how the industry looks at settlement speed, liquidity, reconciliation, risk, and potentially impact the role of correspondent banking and intermediaries.
The first paper notes that continued innovations will collectively facilitate a new era of payments, with different rails, channels and solutions delivering enhanced capabilities and supporting a variety of client needs. It also notes that the expanding fintech market is acting as a catalyst for innovation by bringing industry players together through various collaborative approaches. Banks are also playing an important role—launching innovation centers to facilitate collaboration with fintechs and clients to optimize the collective offerings.
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“Each new technology is acting as an important piece of the future state of payments,” explains Mike Bellacosa, Global Head of Payments and Transaction Services, at BNY Mellon. “So many exciting developments are occurring in the industry, but no single solution is currently delivering optimized payments.”
“A key element of BNY Mellon’s digital strategy is to offer frictionless access to these innovative solutions through our open-architecture API enabled platforms”, says Saket Sharma Chief Information and Digital Officer for BNY Mellon’s Treasury Services. “Each innovation – whether its SWIFT gpi, real-time payments, blockchain, or artificial intelligence – brings its own value and has a role to play in an enhanced client experience.”
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