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An Enterprise Payments Reality Check: Recent Survey Data

Published by: IDC

Published: Dec. 30, 2008 - 14 Pages


Table of Contents


Table of Contents

Financial Insights Opinion

In This Report

Situation Overview

Business Need

Figure: Existing Bank Architecture: Channels, Payment Systems, and Core Systems

Figure: Top 20 Banks' Use of Enterprise Payments

Bank Size Relates to Enterprise Payments Activity

Table: Bank Size Relative to Scale of Processing, Processing Systems, and Enterprise Payments

Enterprise Payments in Summary

Scenario for the Short Term

The Ideal Single Platform

Figure: Enterprise Payments Concept Diagram

The Approach

Banks Look for Convergence

Figure: U.S. Total Checks Written Versus Total Transactions, 2006-2011

Payments Hub As a Beginning for the Future

Best-of-Breed Strategies

Initial Strategies

Differentiating the Adopters

Future Outlook

Commoditization Reduces Revenue

Convergence Poses Challenges

Consolidation Requires Integration of Multiple Systems

Competition Increases

Essential Guidance

Actions for Financial Institutions

Actions for Vendors

Learn More

Related Research

Synopsis

Abstract

This Financial Insights report summarizes studies of enterprise payments made by Financial Insights over the past three years and makes recommendations for actions for financial institutions and vendors.

According to Aaron McPherson, practice director, "Spending billions of dollars to acquire financial institutions while economizing on the technology needed to integrate them is extremely short sighted and will only ensure that the integration is long, messy, and painful, driving a large number of the customers one is spending all this money to acquire directly into the arms of competitors."



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