The Five Main Reasons Banks Engage In Replatforming

It’s common knowledge within the payments industry that many banks are replatforming their payments operations, but are you familiar with their motives to do so? According to an Accenture white paper, regulations, geographic expansion and technological issues all come into play, as do some other key catalysts for payments transformations. What are the biggest challenges banks face as they aim to replatform?

Check out a preview of what you’ll find in this white paper below, then download the full report for more information. 

Growing numbers of banks worldwide are deciding to transform their payments operations, often including replatforming. While the reasons for replatforming vary, often by geography, there are generally one or more of five drivers at play. 

1. Core banking implementation

Banks around the world are choosing to replace their legacy core banking systems and separate core payments processing from core banking processing. This enables their payments processing to be more flexible to market changes.

2. Technology issues

Banks’ IT simplification agendas often target rationalization, consolidation and replatforming of payment systems, alongside the introduction of new standards. As they pursue these goals, many banks are finding that their legacy systems are unable to cope with the volume and nature of electronic payments.

3. Regulation

Banks across the world are experiencing intensifying scrutiny of systemically important payments systems, along with continuing pressure for harmonization, transparency and open competition. There are many examples of key regulations impacting banks around the world—such as SEPA in Europe, and Same Day ACH and the Durbin Amendment in the US.

4. Geographic expansion

Banks are expanding into new markets in response to growing cross-border trade and the need to match their clients’ footprints. Other factors include growing remittances by an expanding migrant population. So banks’ payment systems need to be flexible to support their operations across geographies.

5. Infrastructure-building

In emerging economies, where legacy systems are limited, banks have a great one-off opportunity to implement new payment schemes and new payments infrastructure which leapfrogs several generations of legacy technology.

Download the full white paper here.

To access the Accenture Payments Transformation Series, visit Accenture here.

Questions? Email Accenture at paymentservices@accenture.com.