Payment: Real-time Transactions Drive Payments Sector - valantic
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CASE STUDY Payment: Real-time Transactions Drive Payments Sector
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Quick Wins
1 Biggest Commercial Bank in Czech Republic Already
Arrived in the Future
2 Modular Payment Hub for Processing Different
Payment Types
3 E-Commerce Benefits from Instant Payment
4 Open Banking Leads to more Transparency
5 NetGuardians as Strong Partner for Fraud Detection
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Global trends, changing business models and innovations
pose new challenges for the world of payment transactions.
New payment providers simplify payment processes and
seemingly threat the existing ecosystem of banks and
financial service providers.
Seemingly – because banks also keep up with the times.
Within the framework of a comprehensive roll-out for the
Czech bank Česká spořitelna, valantic has implemented a
technology with which the subsidiary of the Erste Group
Bank AG in Vienna can now offer its clients the possibility to
make payments in real time.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR Overview Instant payment has long become a worldwide subject sustainably changing the payments sector. As competitive and regulatory pressure rises world- wide, financial institutes quickly realise that they have to redesign their payment systems. The cost pressure for conventional payment architectures also promotes the consolidation of redundant features. Furthermore, consumers claim rapidity, convenience and simplicity for payments. Within one decade, real-time payments around the clock have emerged as key driver for innovations in the payments sector; in many parts of the world, this technology has become the norm. The drivers of such payment systems vary between cost reduction, increased efficiency and better customer service – and, of course, the adherence of regulatory and compliance guide- lines. One of the outcomes has been the European Banking Association’s pan-European SEPA instant payments system RT1 introduced in 2017.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
What factors are currently influencing
the technological change?
90%
Cost reduction and increase in efficiency
88%
Improvement of customer service
83%
Increase in revenue
78%
Fulfilment of legal and compliance obligations
73%
Competitiveness and agility
47%
Improvement of control mechanisms
42%
Boosting time-to-market
Source: Expert survey
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR Biggest Commercial Bank in Czech Republic Meanwhile, payments in real time have to support all possible payment types – including P2P, B2B, B2C and C2B. This also expands the complexity and the additional technological levels which have to be supported by banks, companies and traders. Of course, rapidity and convenience are crucial for East Europe, too. Consequently, the Česká spořitelna in the Czech Republic has recognised the need for a modern and future-proof solution. With a balance sheet total of 33.7 billion euros, more than 10,000 employees, more than 600 local branches and five million clients, the Czech financial institution is the biggest commercial bank in the Czech Republic. The subsidiary of the Erste Group supervises more than 16 million clients in seven countries and is thus one of the biggest bank groups in Central and East Europe.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Modular Payment Hub
In payments, Česká spořitelna has already arrived in the specific requirements. Thus, all payment transaction
future. Thanks to valantic’s Real Time Payment Engine, services which may arise in a bank can be processed
bank customers have the possibility to carry out out of one central hub. This reduces costs and valuable
real-time money transfers in Czech crowns. The valantic resources and additionally consolidates computing
Real Time Payment Engine (RTPE) is an open, modular operations in one system.
structured payment hub solution which, in addition to
instant payments, supports the processing of many The web-based user platform monitors all payments,
different payment types such as SWIFT or SEPA. By integ- visualises complex transactions in one GUI and gives an
rating different payment channels – such as e-banking, overview of the current processing status. It provides a
manual recording of payments or payments via third- reliable, scalable and very flexible technology collabo-
party providers – the RTPE is particularly versatile and rating with current payment processing systems.
highly flexible. The high-performance solution provides an almost 100
percent Straight-through Processing (STP) which is of
In addition, the real-time software comprises numerous vital importance taking into account the combination of
gateways, features a multi-channel and multi-instrument very small margins and the increasing pressure on
capability and is easily adjustable to country- and bank- efficient payment handling.CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
valantic Real Time Payment Engine (RTPE)
Initiation Processing & Settlement Clearing
Claim Investigations &
Processing Exceptions Clearing Channels
Client Channels
Branches SEPA SCT, SDD, SCC
Account
Corporate Statements
Domestic Payments
Banking
CGi Module
E-Banking International Payments (SWIFT)
PSD2 Module
Third Party
Providers Instant Payments
+ more
Manual Payment
Capture
Other Payment
Systems 24/7 Balance Module National Clearing
Routing Clients & Core
RMA Liq.Mgmt. Reporting Fraud / AML
Directories Accounts Banking
Source: valanticCASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Benefits for E-Commerce
Volumes of Mobile Payments
Companies can benefit from real-time payments by using functionalities like via PayPal
hourly payroll and just-in-time inventory management. Payments in real time (in Billions US-Dollar)
also permit to transfer more data together with the payment and to simplify
the coordination and reporting. Banks are now able to provide extended
services and to create further added value for their clients. In addition,
companies can also manage their liquidity positions more efficiently in the
entire financial supply chain.
The extended use of online and mobile devices supports this
trend which is given by digitalisation. Mobile payment solutions such as
Apple Pay or Google Pay also confirm this trend as well as the high customer
expectations regarding the convenience and flexibility of payments. In the
fields of e-commerce as well, real-time payments are a means of ensuring
customer loyalty: goods can flow faster and refunds can just as quickly be
credited to the consumer’s accounts. Compared to payment transactions
with credit cards, real-time payments are considerably less expensive for the
traders.
Source: statista.comCASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Open Banking
As of the introduction of the Payment Services Directive (PSD2) in Europe,
banks and financial institutes have to give service providers which are
approved and authorised by the clients access to customer accounts. Open
gateways allow more space for managing personal finances and require even
more the real-time aspect in financial transactions.
The future banking and finance world can only benefit from more transpa-
rency and data from the day-to-day business. This knowledge will positively
influence numerous subsections and help to segment customers, reinforce
customer loyalty and accelerate checks, e.g the credit check.CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR AI Supports Real-Time Payments For detecting criminal activities, the evaluation of data will be particularly important, too – the more transparent the processes are, the earlier fraud and money laundering can be identified. Fraud detection is to be applied not only towards external access but also towards manipulations from within. Thanks to artificial intelligence, a solution of valantic’s partner NetGuardians monitors all processes and transactions in real time, regardless of the data volume. Thereby, no known fraud patterns are searched but the entire behaviour of users and bank clients is checked for anomalies, so that even risks arising from new fraud methods which are not known yet are secured as far as possible.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Real-time payments also provide a platform for further innovation: processes
such as e-invoicing and e-commerce payment solutions are also supported
Customer Employee by real-time payment systems and allow the customers more control over
behaviour behaviour their money. Consumers as well as companies directly pay from their
accounts.
This payment method is cost-effective, fast, secure and enables an
immediate verification and confirmation of the credit balance. It helps
traders to reduce their exchange costs and helps banks to maintain the
direct relationship to their customers. The most important, however, is that it
meets the consumers’ expectations in today’s world – and is already reality in
the Czech Republic.
Transactions
Source: NetGuardiansAbout valantic
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valantic Financial Services Automation is a business unit of the global
For more information please
valantic Group (www.valantic.com), a worldwide leading supplier of software
visit our website:
solutions in the sections of Electronic Trading, Payment and Transactions.
valantic supports leading banks and financial institutes on their course for
www.valantic.com
growth by means of standardised or customised solutions in the field of
Digitalisation, Open Banking, Automation and the simplification of business
or contact us at your convenience.
operations.
In addition to the development of banking solutions, valantic is experienced sales@ts.valantic.com
consulting and producer-independent implementation partner for the
+49 391 59809-22
financial industry. For more than two decades, the company supports clients
such as Erste Bank, Santander, DZ Bank or UniCredit Group. More than
250 IT and finance specialists ensure a smooth and personal service from
different locations. The valantic Group is taking the lead in digital transfor-
mation and belongs to the leading digital solutions, consulting and software
companies with more than 800 developers and consultants worldwide.valantic FSA
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