Oracle, the software company, revealed on Wednesday (Aug. 9) the release around the globe of its Oracle Banking Payments API service.
In a press release announcing the news, the company said the offering, which was built from the ground up leveraging ISO 20022, is designed to help banks compartmentalize payments messaging, message transformation and payment processing, while providing insight. The company said that by using the Oracle Banking Payments API, banks can also innovate within the Internet of Payments, collaborate with third parties or curate new business models in collaboration with FinTechs.
“As a core banking vendor, we have been supporting payments for over two decades. We run payments for over 500 banks across 140 countries. In many instances, our applications cater to a significant proportion of a country or a jurisdiction’s volumes; for example, we enable over 20 percent of the inward and 22 percent of the outward real-time settlements in India,” said Chet Kamat, senior vice president, Oracle Financial Services, in the press release. “With Oracle Banking Payments, financial institutions can improve straight through processing, support real-time and immediate payment settlement and reduce time-to-market while driving innovation.”
According to Oracle, digitization is creating a situation in which customers want real-time, frictionless payments, and banks have increasingly moved to siloed structures and multiple messaging standards to meet the demand, which creates a disharmonized payment landscape. FinTechs are entering the market, challenging the incumbents with personalized products that are efficient and highly secure.
In order to stay competitive, banks and other traditional financial firms need to overhaul their approach to digital payments, Oracle said. “With Oracle Financial Services Analytical Applications (OFSAA), Oracle Banking Digital Experience, Oracle FLEXCUBE, Oracle Banking Platform and Oracle Financial Services Revenue management and Billing, today’s (Aug. 9) announcement of Oracle Banking Payments makes Oracle one of the most comprehensive solution providers for the payments industry,” the company went on to state in the press release.