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Everyday banking: Accenture's digital strategy for banking and payments

Digital is revolutionizing payments in the Everyday Bank ecosystem.

Overview

As the banking industry approaches a disruption resembling those already experienced by retail photography and video rental, Accenture sees an opportunity for banks and payment providers to embrace the disruption and become central to customers' everyday transactions.

Digitally enabled accounts will be at the core of the digital payments ecosystem. Banks and payment providers moving to enable their customer's accounts for digital access can offer a complete customer proposition encompassing everyday interactions and from that position increase their value in digital payments. Accenture has identified six focus points for that growth:

  • Polymorphic Payments

  • Digital Commerce

  • Immediate Payments

  • Cards Innovation

  • Digital Corporate

  • Payments Transformation

Everyday Payment Providers will need to develop their strengths against a background of intensifying competition and declining payment fees as regulatory actions bite. Operational efficiency is therefore a critical factor and indeed the optimal new capability model may be utility-driven at its core, with specific capabilities acquired and accessed from complementary partners. Each player's approach will vary depending on existing strengths and positioning, but in Accenture's view, the winners will be those participants who focus rigorously on the key themes and priorities identified in this paper.

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Background

As the banking industry approaches a disruption resembling those already experienced by retail photography and video rental, Accenture sees an opportunity for banks and payment providers to embrace the disruption and become central to customers' everyday payment transactions.

Just as social media and online retailers have become central to customer's everyday purchasing decisions, the digitally aware "Everyday Bank" can take advantage of digital payments, with accounts enabled to initiate payments over all digital channels and thus becoming the focal points for customer interaction and engagement.

The dominant digital payment providers can become a trusted and indispensable partner central to customers' daily lives and activities. Accenture foresees a mix of next-generation players playing this role in the payment domain, such as today's banks, card companies, Automated Clearing Houses, processors, payment gateways, acquirers and other possible players such as telecommunications companies and retailers. The Everyday Payment Provider will help fulfill both financial and non-financial needs, and forge deep and durable two-way relationships in the process.

Analysis

Digitally enabled accounts will be at the core of the digital payments ecosystem. Banks and payment providers moving to enable their customer's accounts for digital access can offer a complete customer proposition encompassing everyday interactions and from that position increase their value in digital payments. Accenture has identified six focus points for that growth:

  • Polymorphic Payments: As new digital payment methods proliferate and the landscape fragments, various customers—individuals, merchants, businesses, corporations—will pay with alternative and emerging payment methods, currencies, and channels.

  • Digital Commerce: Traditional boundaries between pre-sale, payment and post-sale activities will become increasingly blurred as an ecosystem of connected content and service providers emerges.

  • Immediate Payments: Real-time payment services will demand a reliable and efficient mechanism for immediate funds transfer.

  • Cards Innovation: Card issuers and acquirers will adapt to emerging physical mechanisms and a proliferation of currency and channel options.

  • Digital Corporate: As corporate transaction services move to digital channels, providers will leverage digital to offer value-based managed services.

  • Payments Transformation: Simplification and enhancement of digital payment concepts already underway are laying the foundation for new, differentiated payment propositions suited to the full breadth of a future digital ecosystem.

Video

Everyday Payments

“Everyday Payments is about digitally enabling accounts to operate in any payment purchasing situation.”


Accenture's Jeremy Light, Managing Director - Accenture Payment Services Lead for Europe, Africa & Latin America, speaks with Asif Faruque of FinExtra about the Everyday Bank and Everyday Payments. 

Enabling Everyday Payments Infographic

Digital Payments: Enabling the Everyday Payments Ecosystem
Banks and other payment providers need a new mindset to compete in a digital era of enhanced consumer choices and connectivity.

Recommendations

A clear message for today's banks, payments processors, card issuers and acquirers is that payments can regain center stage for customers of all types, as digital payment processes capture valuable customer information and provide opportunities in cross-selling, relationship-building and providing targeted service. It is equally clear that differentiation in the emerging digital payments environment will be across the end-to-end customer experience, so customer interaction must be seamless, friction-free and context-specific, with complexities (such as security or currency type) embedded and hidden.

Current banks and payment providers will also need to think in new ways—sharing information, offering interoperable solutions and making pricing transparent. They will need to identify and exploit new ways of making money, by providing a widening array of value-added services to proliferate payment functions wherever merchants and consumers require them.

Everyday Payment Providers will need to achieve all this against a background of intensifying competition and declining payment fees as regulatory actions bite. Operational efficiency is therefore a critical factor and indeed the optimal new capability model may be utility-driven at its core, with specific capabilities acquired and accessed from complementary partners. Each player's approach will vary depending on existing strengths and positioning, but in Accenture's view, the winners will be those participants who focus rigorously on the key themes and priorities identified in this paper.

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Industry & topics highlighted

Banking