Payment Solutions: Improving Wholesale and Retail Processes to Cut Costs and Enable New Capabilities1. James Wallis – Vice President, Global Payments Industry
August 2010
Payments
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2. Building a smarter planet
Key Payments Industry Drivers
Payments Processing Efficiency
Corporate Services
Retail Payments
Digital Payments
Payments Risk and Compliance
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3. Building a smarter planet
Reasons to be optimistic…
> 2.5 5.8% $1,264
billion CAGR trillion
Half the world Growth in world The value of
population is GDP2 from 2010 global assets3 will
still unbanked.1 thru 2025 will quadruple by
continue to put 2025.
legacy systems
under stress.
1 - http://financialaccess.org/sites/default/files/110109%20HalfUnbanked_0.pdf
2 - Nominal
3 - Assets = deposits, equity and fixed income
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4. Building a smarter planet
It Is Time To Consider Smarter Payments
Rethink the Develop New
Business Model Intelligence
Simplify & reduce Differentiate
the number product delivery
of payments via analytics &
processing silos. innovation.
Integrate Risk Management
Enable an enterprise view of risk across
payments fraud, financial crimes and
regulatory oversight.
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5. Building a smarter planet
Smarter Payments Is About Enabling The Most
Secure, Efficient And Transparent Processing
Environment Possible
+ + =
Smarter
Instrumented Interconnected Intelligent
Payments
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6. Building a smarter planet
Smarter Payments Delivered
90% 77% $3.5 trillion
Reduction in Increase in In FX trades
manual process processing per day
capacity
Bank of Depository Trust & CLS Bank
New York Mellon Clearing Corporation
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7. Building a smarter planet
Smarter Payments Delivered
10x 35% $400 million
The number Increase in Annual Savings
of credit cards access speed
processed
Large Chinese Rabobank Bank of Russia
Bank International
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8. Building a smarter planet
IBM Banking Industry Framework
Core Banking
Transformation
The payments and
securities domain helps you
Customer
IBM
Banking
Payments progressively transform your
Care and and
Insight
Industry
Framework
Securities payments operations to
become more flexible and
efficient
Integrated Risk
Management
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10. Building a smarter planet
IBM Banking Industry Framework
IBM Payments
Solutions:
ISV Applications
IBM Software
IBM Services
IBM Technology
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11. Building a smarter planet
The IBM Banking Framework Delivers Value
Simplifies infrastructure, reduces
costs, and enables growth
through innovation
Enables integration of
information and processes
Technology adapts to changing
business needs
Drives a greater return on project
investment
Speeds deployment of value-
added solutions
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12. Building a smarter planet
IBM Centers of Excellence for Payments
Dublin Labs
Poughkeepsie La Gaude Montpellier
Barcelona Beijing Seoul
Silicon Valley Dallas
Sao Paolo
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13. Building a smarter planet
IBM Services
According to an independent marketing intelligence study
conducted by National Analysts Worldwide, IBM Global
Business and Technology Services leads in overall client
satisfaction, surpassing all top competitors on eleven core
service attributes including:
Overall satisfaction Innovation
Value Leadership
Reputation Meeting expectations
Competitive advantage Client retention
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14. Building a smarter planet
IBM Services
When comparing IBM to other providers,
survey participants expressed greater
likelihood to:
Choose IBM if they need consulting
services from a provider in the future
Choose IBM if they need additional IT
services in the future
Make the same decision to purchase
services from IBM knowing what they
know now.
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15. Building a smarter planet
Long Term Vision for Payments
“ Regardless of the economic environment, continued
investment in a long-term IT payment strategy focused on
agility and transparency is imperative if banks are to
maintain a healthy and vibrant payment franchise in the face
of increased competition and regulatory changes. Banks that
succumb to short-term IT cost-cutting measures will struggle
to maintain profitable payment operations and will lose
competitive advantage.”
Gartner:
Banks Must Maintain Their Long-Term
IT Strategy in Payments
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