Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
0 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
October...
1 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
About W...
2 The information contained in this presentation is proprietary. 
Copyright ©2014 Capgemini. All rights reserved. 
Celebra...
3 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
Payment...
4 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
A Ten Y...
5 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
About W...
6 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
Global ...
7 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. The mobi...
8 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
Cross b...
9 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
About W...
10 The information contained in this presentation is proprietary. 
Copyright ©2014 Capgemini. All rights reserved. 
As Key...
11 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. This ye...
12 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
Data m...
13 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Leverag...
14 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
About ...
15 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Innovat...
16 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
In add...
17 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
For th...
18 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
Firms ...
19 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
About ...
20 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
•800 b...
21 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Closing...
Questions? 
www.worldpaymentsreport.com
Thank you for joining us today! 
www.worldpaymentsreport.com 
Pick up your free copy 
World Payments Report 2014
24 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
Append...
25 
The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. 
List o...
Upcoming SlideShare
Loading in …5
×

World Payments Report 2014 Key Findings Presentation

Ten years after publishing the first World Payments Report, Capgemini and RBS continue to provide insight into global and regional non-cash payment trends. In this presentation from the World Payments Report 2014, we explore what is driving payments growth, the increasing overlap of key regulatory and industry initiatives, the increased cascade effect, and innovation and transformation in payments processing. Visit www.worldpaymentsreport.com for more information.

  • Login to see the comments

World Payments Report 2014 Key Findings Presentation

  1. 1. 0 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. October 2014 > World Payments Report Presentation
  2. 2. 1 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. About World Payments Report 2014 What is Driving Payments Growth? Increasing Overlaps of KRIIs and Increased Cascade Effect Innovation and Transformation in Payments Processing The Way Forward World Payments Report 2014 (WPR) -Roadshow
  3. 3. 2 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Celebrating 10 years of analyzing the quickly evolving global non-cash market 2005 2006 2007 2008 2011 2012 2009 2010 2013  The industry‟s point of reference for global non-cash transaction market data  At the forefront of understanding regulations and their interaction with business models and operations  The clear thought leader on the various levers for successful payments strategies and innovation  WPR13 analyzed the client-end of the value chain, WPR14 examines the fulfillment i.e. the non-customer facing part of the value chain -„Payments Processing’ WPR 2014 2014
  4. 4. 3 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Payments executives from 31 financial institutions globally have shared their opinions with Capgemini and RBS’ industry experts WPR 2014 Executive Interviews —Executives Pain Points “Handling data and transformation initiatives are getting complex, especially for global banks which have to comply with regulatoryissues across geographies.” “Our business transformation approach is to test and learn with new use cases as we go along. We do not want to take a big bang approach.” “Although it is a long journey, banks need to act now as simplification of payments systems has a strong commitment from key stakeholders.” SELECT FIRMS* Australia:ANZ Austria: Erste Group Bank AG, Raiffeisen Bank International AG Brazil: BancoBradescoCartões, France: EBA, NatixisPaiements, Credit AgricoleCards and Payments, BNPP Germany: EquensSE, UniCreditBank AG India: NPCI Mexico:Banamex Netherlands:ING, RabobankNederland, ABN AMRO, Deutsche Bank Singapore: Standard Chartered Bank Sweden: Nordea, SEB UK: Aviva, Mastercard Worldwide US:Citibank, PayPal, VeldosLLC * Represents only the firms that agreed to be named in the report
  5. 5. 4 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. A Ten Year World Payments Report Retrospective: An Industry in Evolution What Were Correct Predictions? Penetration of non-bank PSPs in the payments market Increased fragmentation and commoditizationof the payments value chain Challenges to business models caused by regulatory and industry dynamics Barriers to a full and successful SEPA migration Payments growing in importance and reaching board level attention WhatSurprised Us? Sourcing strategies have remained relatively stagnant in the payments industry Decrease in usage of checks was slower than expected Consolidation of ACHs (Automated Clearing Houses) did not happen as anticipated The fast development of technologies including smartphones, cloud-based solutions and real-time payments was not anticipated
  6. 6. 5 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. About World Payments Report 2014 What is Driving Payments Growth? Increasing Overlaps of KRIIs and Increased Cascade Effect Innovation and Transformation in Payments Processing The Way Forward World Payments Report 2014 -Roadshow
  7. 7. 6 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Global non-cash transactions volume growth decelerated in 2012, but is expected to have accelerated in 2013
  8. 8. 7 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. The mobile payments space is increasingly more competitive, with banks and non- banks striving for insightful data, market influence and consumer loyalty Note: Number of Global Transactions (Billion), 2011–2015F The growth continues in the e-and m-payments markets and a gradual convergence is happening as the distinction between the two diminishes CAGR: 15.9% CAGR: 60.8% (Non-Banks: 82.7%, Banks: 58.1%) Banks Non-Banks E-Commerce Transactions M-Payments
  9. 9. 8 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Cross border payments in the retail sector represents an opportunity for banks, with large volume and potential growth Remittances B2C CommerceGlobal Trade Financial Markets Key Industry Statistics in 2012 $529 bn (6.6% CAGR 2009- 2012) Source (Estimated/Actual) E-commerce: $300 bn $22.6 tn (3.8% CAGR 2008-2012) World Bank (E) PayVision (E) Current Market Share of Banks WTO (E) SWIFT (A) 2.2 bn securities and treasury transactions (4.4% CAGR 2008- 2012) Snapshot of Data for Cross-border Segments Corporate RetailBanks should revisit the balance of risk and convenience within their product mix to further increase their overall share in the cross-border payments space Growth opportunity for Banks 90% 100% 10- 30% 30- 60%
  10. 10. 9 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. About World Payments Report 2014 What is Driving Payments Growth? Increasing Overlaps of KRIIs and Increased Cascade Effect Innovation and Transformation in Payments Processing The Way Forward World Payments Report 2014 -Roadshow
  11. 11. 10 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. As Key Regulatory and Industry Initiatives continue to increase across the globe their focus shifts from a regional to a global level, creating a cascading effect Heat Map of Key Regulatory and Industry Initiatives (KRIIs), Global and Regional, 2014 North America  EMV Adoption in the U.S.  Prepaid Payment Products Regulations in North America  Capital Rules for Foreign Banks in U.S. LOW HIGH Europe  Access to Accounts (PSD II)  European Current Account Switching  Large Value Payment Systems Upgrades  SEPA / e-SEPA  SEPA for Cards  Mobile Payments Security in Europe  Cybersecurity Directive  Electronic Identification and Trusted Services  Internet Payments Security in Europe  Financial Transaction Tax LOW HIGH Note: Emerging Markets refers to Asia-Pacific, Middle East, and Latin America KRIIs cited in previous WPRs KRIIs introduced in WPR 2014 LOW IMPACT HIGH IMPACT IMPACT ON PAYMENTS Emerging Markets*  Asian Payments Network*  Financial Inclusion  UAE Wallet  National Payments Corporation of India LOW HIGH Global  Basel III Capital Norms  Basel and Intraday Liquidity Norms  Real Time Retail Payments  Pressure on Card Interchange Fee  Contactless Cards / NFC  Cross-Border Low Value Payments Processing  Payments Governance  Mobile Payments  Tokenization for Cards  e-Invoicing  ISO 20022 Standards in Payments  AML / ATF  Data Privacy and Payments  e-Government  Access to Clearing  Virtual Currency Regulations  U.S. Foreign Account Tax Compliance Act (FATCA)  Bank Payment Obligation  CPSS-IOSCO LOW HIGH Many European initiatives like: • Real Time Retail Payments • Payments Governance are being taken to a global level
  12. 12. 11 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. This year, more than 50% of the analyzed KRIIs focused on innovation with 60% overall falling into that trend LOWIMPACT HIGHIMPACT IMPACT ONPAYMENTS Standardization Competition and Transparency Innovation 1a 27 4 628 3 30 9 820 5 Risk Reduction 2 23 11 14 31 7 10 1b19 25 26 29 3432 33 12 13 15 16 17 18 21 22 24Overlap of Industry Transformation Trends Driven by KRIIs 1a Basel III Capital Norms 1b Basel and Intraday Liquidity Norms 2 Cross-Border Low Value Payments Processing 3 Access to Accounts (PSD II) 4 FATCA 5 AML / AFT 6 SEPA / e-SEPA 7 Pressure on Card Interchange Fees 8 Prepaid Payment Products Regulations in North America 9 Large Value Payment Systems Upgrades 10 Real Time Retail Payments 11 European Current Account Switching 12 EMV Adoption in the U.S. 13 Internet Payment Security in Europe 14 Data Privacy and Payments 15 Payments Governance 16 ISO 20022 Standards in Payments 17 Mobile Payments 18 Contactless Cards / NFC 19 SEPA for Cards 20 e-Invoicing 21 e-Government 22 National Payments Corporation of India 23 CPSS-IOSCO 24 Access to Clearing 25 Mobile Payments Security in Europe 26 Virtual Currency Regulations 27 Capital Rules for Foreign Banks in U.S. 28 Financial Transaction Tax 29 Bank Payment Obligation 30 CybersecurityDirective 31 Electronic Identification and Trusted Services 32 Tokenization for Cards 33 UAE Wallet 34 Financial Inclusion Y Y KRIIs introduced in WPR 2014 KRIIs cited in previous WPRs KRIIs cited in previous WPRs KRIIs introduced in WPR 2014
  13. 13. 12 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Data management is becoming a key bank strategy to effective regulatory compliance and develop new service offerings that improve return on investment Optimized Data Management for Effective and Efficient Regulatory Compliance Silo’ed Approach Leverage external data Correlate internal and external data Leverage analytics Develop tools Single Data Model Approach Develop MIS Improve reporting efficiency and compliance effectiveness Consolidate reporting activities Create vision Develop strategy Define data requirement Develop systems Reduce complexity of technologies Develop dashboard Ensure accuracy of the data Robust governance Monitor the dataGoing Beyond Compliance Roadmap to Single Data Model Approach Create Configure Conform Comply Complement Deriving a single view of the customer will help banks improve their customers’ experience and enhance their sales opportunities
  14. 14. 13 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Leveraging payments data models can help firms move from a compliance- centric approach to one of differentiation for customer valueInternal FocusClient Focus RegulatoryNon-Regulatory Perspective Driver Fraud Monitoring AML KYC Regulatory Reporting (Transactions and Liquidity) Cost Management Product Innovation Cross-Sell and Up-Sell Improved Control and Risk Reduction Value Added Services Big Data Customer Analytics Format Standardization Transparency in relationship (e.g. transparency of prices and not pricing information , speed of transactions etc.) Shared KYC initiatives Efficiency Differentiation Compliance Support E-invoicing Supply Chain Advisory Cash Forecasting DataAdvisory/ Service Driver and Perspective Analysis for Payments Data Models
  15. 15. 14 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. About World Payments Report 2014 What is Driving Payments Growth? Increasing Overlaps of KRIIs and Increased Cascade Effect Innovation and Transformation in Payments Processing The Way Forward World Payments Report 2014 -Roadshow
  16. 16. 15 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Innovation has accelerated in customer facing areas but payments processing face multiple external and internal challenges External Pressure Impact on PP (E) Security and Data Privacy (Regulations) Real Time Information and Processing Pressure on Traditional Business model Competition forVolume Competitionon Front End Disruptive Technologies Price Pressure ChangingProduct Mix Reorganization (ring- fencing) Customer Demand for Visibility into Data Internal Challenges Impact on PP(E) Complexityof Legacy IT Managing InternalBandwidth (and limited resources) Silo-edOperations HighCost of Processing Product Proliferation Selecting RightPartnerChallenges constrain firms from developing a full response to the external forces they face; traditional players now need a strategic review of their payments processing activities. LOWIMPACT HIGHIMPACT IMPACT ONPAYMENTS
  17. 17. 16 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. In addition to the client-facing part of the value chain, customer demands are driving the need for payment processing transformation and innovationCustomer Demands Driving a Need for Innovation in Payments ProcessingReal-time Capability‘Anytime’ /‘Anywhere’ PaymentsMultiple Payments Modes/ChannelsEnterprise-wide Visibility (Cash and Working Capital) Cost Control via Efficient Payments ProcessingRisk ManagementTreasury Technology Compliant with Corporate IT Ease of Payments Value-Added Services Visibility/Insights from Payments Data Retail Corporate Retail/Corporate
  18. 18. 17 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. For the majority of payments firms interviewed, transformation of processing infrastructure is a top priority in the short term as well as medium to long term Short Term Medium Term Long Term Top Priority Top 3 Priority Not a PriorityTime Horizon of Transformation Objectives for ProcessorsOur research indicates a strong inclination towards quick prioritization of payments processing transformation projectHalf of the interviewed firms indicated that payments processing transformation is the top priority for them in the short termMost of the participants indicated that payments processing transformation takes time and hence have retained it as a top 3 priority over the medium or long termsPayments processing transformation is amongst the top priorities for most of the interviewed participants in the short/medium term and a few indicated otherwise
  19. 19. 18 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Firms need to reassess the basics of incremental transformation through considering more robust execution aligned to a clear business vision Roadmap Towards Desired Payments Processing CapabilityBuilding Transformation VisionIncremental TransformationIntegrated Payments Back- OfficeDelivering Long- term Business BenefitsCommon constraints during transformation initiatives restrict the ability of firms to derive clear benefits from transformation •Decide a long-term payments processing vision •Assess the current maturity and agree the future desired maturity •Formulate an incremental transformation •Execute the strategy through short cycle projects •Develop an integrated processing platform with desired capabilities and flexibility •Deriving business benefits for the firm and the clients –retail and corporate
  20. 20. 19 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. About World Payments Report 2014 What is Driving Payments Growth? Increasing Overlaps of KRIIs and Increased Cascade Effect Innovation and Transformation in Payments Processing The Way Forward World Payments Report 2014 -Roadshow
  21. 21. 20 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. •800 billion number of non-cash payments transactions by 2024 •Developing countries growing to half of the total non-cash market by 2021 •Developing markets to be the focus of the majority of new solution development •Entry by large numbers of non-banksinto the customer-facing segments •In several major countries, banks may no longer be the only party at the center of payments governance •More PSP’s sharing parts of the value chain due to regulatory and industry changesRadical Shift In Roles And Influenceof Key Stakeholders Innovation And Convergence will Change Pricing and Product Mix •Continued acceleration of innovation and convergence •Emergence of additional currencies •Rising usage of closed loop payments instruments (prepaid) •Increased biometric identification •Rising potential risk of fraud or failure of PSPs •Continued proliferation of financial industry regulation •Focus on consumer protection by regulators to continue •Increased cross-border e-commerce The 10 year horizon: potential changes in the payments industry
  22. 22. 21 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Closing Thoughts… Section 1: Payments LandscapeThe global non-cash transactions volume growth is projected to have increased by nearly 10% (9.4%) in 2013 after decelerating in 2012 with a growth rate of 7.7%. This projection is fueled by growth in developing markets and debit/credit card use. E-and M-payments are converging. Section 2: KRIIsAs banks face the increasing volume and complexity of key regulatory and industry initiatives (KRIIs), data management offers opportunities to better manage KRIIs and achieve some return on compliance investments. Section 3: Innovation in ProcessingNow is the time for PSPs to develop a long-term vision and realize that vision by implementing short-cycle projects that provide agility and deliver immediate business benefits/value. Section 4: Industry Trends Innovation and convergence are likely to accelerate, resulting in multiple changes in product mix and business models. This could lead to greater choice for clients.
  23. 23. Questions? www.worldpaymentsreport.com
  24. 24. Thank you for joining us today! www.worldpaymentsreport.com Pick up your free copy World Payments Report 2014
  25. 25. 24 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. Appendix Sources and Notes
  26. 26. 25 The information contained in this presentation is proprietary. Copyright ©2014 Capgemini. All rights reserved. List of Sources for World Payments Report 2014 Slide No. Sourcesand Notes 4 Capgemini Financial Services Analysis 2014; Word Payments Report 2005-2013 6 European Central Bank –Statistical Data Warehouse -2012 figures released September 2013; Bank for International Settlements Red Book, 2012 figures released December 2013, Country‟s Central Bank Annual Reports, 2012 7 Industry estimates for the overall size of the e-commerce and m-payments markets are derived from various industry and analyst reports. For estimating transactional data for non-banks and alternative players in e-payments and m-payments, we have analyzed transactional data from leading market players such as PayPal, Amazon, and Vodafone M-Pesa 8 9 SWIFT Annual Report, 2012; Migration and Development Brief, World Bank, April 2013; WTO –World Trade Reports 2009-2013 Note: Remittances are estimated and contain both cash and non-cash transactions. Global trade numbers include both cash and non-cash transactions. The financial markets numbers reflect only SWIFT transactions. 11 Capgemini Financial ServicesAnalysis, 2014; World Payments Report, 2011, 2012, and 2013 12 Capgemini Financial ServicesAnalysis, 2014; World Payments Report, 2011, 2012, and 2013 13 Capgemini Financial ServicesAnalysis, 2014; World Payments Report, 2011, 2012, and 2013 14 Capgemini Financial Services Analysis 2014 16 Capgemini Financial Services Analysis 2014; Executive Interviews for WPR2014 Note: The chart has been prepared based on the executive interviews with 15 traditional processors 17 Capgemini Financial Services Analysis 2014; Executive Interviews for WPR2014 Note: The chart has been prepared based on the executive interviews with 15 traditional processors 18 Capgemini Financial Services Analysis 2014 19 Capgemini Financial Services Analysis 2014 21 Capgemini Financial Services Analysis 2014; Word Payments Report 2005-2013

×