Payments: Refurbish or rebuild
Slagmulder, Regine Cumps, Bjorn Dillen, Yannick
Slagmulder, Regine
Cumps, Bjorn
Dillen, Yannick
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Publication Type
Journal article
Editor
Supervisor
Publication Year
2018
Journal
Journal of Digital Banking
Book
Publication Volume
3
Publication Issue
1
Publication Begin page
39
Publication End page
50
Publication Number of pages
Collections
Abstract
The payments industry is facing its most radical change in decades. This is due to at least four change drivers — increased regulation, changing customer behaviour, technological innovation and new entrants. The sector faces increased competition from large established tech companies and small FinTech start-ups that are moving into the payments space. Based on the authors’ work with companies in the financial services industry and expert interviews, this paper identifies two distinct types of trends: those enhancing the existing payments system and those trying to build a completely new system. It is clear that a lot of the innovations focus on disintermediating the incumbent organisations. But how can these organisations best address these changes? Building on previous research the authors discuss four crucial capabilities for incumbents to master in an increasingly turbulent environment like the payments sector — designing superior customer experiences, setting up data-driven infrastructures, building multiparty collaborations and providing platform-based solutions. It is impossible for organisations to predict what will happen, but they will be better prepared for the road ahead by investing in these four capabilities.
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Keywords
Payments, Incumbents, Collaboration, Customer Behaviour, Organisational Capabilities