SIBOS19: finserv leaders should be payments experts

Indeed, real-time payments technology like the NPP is the undisputed future of trade both domestically and across borders. 

"I'd love to be able to connect cross-border transactions into the NPP network.” - Perkins

That’s why the players in the financial services sector, like ANZ, are committed to recognising and promoting the value of the NPP in the future, ANZ Director, Head of Clearing Services Product, Luke Perkins says.

Speaking on podcast, Perkins says while he does not doubt there is strategy behind the NPP rollout, after 18 months in the market it's “probably high time we really start to drive that reachability piece”.

“With such a big step change in what we are able to deliver customers I would have thought there'd be a bit more awareness put out into the public arena.

“When I look at it from an international perspective, I'd love to be able to connect cross-border transactions into the NPP network but if the reach isn't there, you're not going to deliver a consistent customer experience.”

Perkins made the comments on a podcast with ANZ Head of Wholesale Digital Leigh Mahoney ahead of the Sibos 2019 financial services conference in London, where the future of real-time payments services is expected to be one of the key themes of discussion.

You can listen to the podcast below.

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Mahoney said it is critical the industry is clear on its responsibility to ensure customers are taking advantage of the opportunity real-time payments present.

“I think that's perhaps where [banks have] a role to play… over the next 12 or 18 months,” he said.  “What are the things we can do, either as a bank or an industry, to help increase adoption of these real-time systems?”

Mahoney said the in-progress switch to ISO 20022 standards have been a step change for many industry participants. Like many countries around the world, Australian institutions are in the process of aligning with the International Organisation for Standardisation (ISO) 20022 payments messaging standard.

The new set of rules applies to financial messaging between fund-transfer participants. By 2023, all major high-value payments systems are expected to comply with ISO 20022.

Former systems were old by market standards, with limited data capacity, Mahoney said.

“And then we went to this ISO thing which was pretty much unlimited,” he said. “It's almost like we've gone from the Flintstones to the Jetsons.”

The two experts also touched on the outlook for real-time payments, why requesting a payment might be the next big thing in the sector, and the need for banks to focus on the service offered to customers rather than the assets required to deliver it. 

Listen to the podcast above to find out more.

Arun Kayal is Associate Director, Communications & Shane White is Content Manager, ANZ Institutional

This article was originally published on ANZ’s Institutional website