Our clients are becoming increasingly interested in card processing options – should they keep things in-house, or should they outsource them? Some banks are hoping to achieve cost savings in the midst of the financial crisis. However, the reason many are re-exmaning their existing delivery models is that payments is becoming a growth driver for banks, a critical aspect of client retention.
These dynamics are particularly evident in Europe, where banks are using SEPA as an opportunity to rethink their payment architecture and plan for strategic sourcing. Some banks in Europe are interested in creating an in-sourcing business and take advantage of compliance requirements.
We are advising our clients to review their payment silos and initiate the payment modernization prior to changing their sourcing arrnagements. It is important that banks have deeper visibility so that the right sourcing decision is made for each process involved in card payments.