Competitive Edge in Banking and Transactions Sector: Insights - Part 1 - Bottomline Financial Perspective
In a recently published report titled "The Future of Competitive Advantage in Banking and Payments," Mike Northey, the founder of Northey Point, sheds light on the critical challenges and opportunities banks and financial institutions face in adopting real-time payments and complying with evolving regulatory mandates.
The report, led by Bottomline, explores findings from over 500 senior payments professionals. Central to these concerns is ISO 20022, a transformational standard that is reshaping the entire payments value chain.
According to the report, legacy infrastructure is a major barrier to the adoption of real-time payments. In fact, 30% of participants consider it a significant obstacle. Moreover, 93% of participants are worried about their ability to comply with changing mandates.
The report underscores that the transition to ISO 20022 is a key concern tied to both compliance and operational readiness in real-time payments. The standard requires enhancements in end-to-end data readiness and operational processes, making it a pivotal factor for banks to achieve compliance and competitive advantage.
With the SWIFT migration to ISO 20022 scheduled for November 2025, the industry is urged to move beyond strategy to practical execution, emphasizing the importance of enriched data handling and operational readiness in real-time payments.
Mike, who is known as a thought leader in payments innovation, real-time infrastructure, and regulatory change within financial services, continues to apply deep levels of insight into many of the most pressing issues facing the payments industry. However, the report does not discuss his past experience as the CEO of Bacs Payment Schemes Limited or his decades of leading innovation across UK and European payments.
In summary, the report underscores that the transition to ISO 20022 is a critical challenge tied to both compliance and operational readiness in real-time payments. Legacy systems limit banks' ability to meet customer expectations for speed, accessibility, and security. The timing of ISO 20022 implementation is forcing the industry to focus on execution and agility to maintain competitive advantage.
- The report, available on ffnews.com, highlights that the transition to ISO 20022 is a critical concern, especially in regards to compliance and operational readiness in business and finance, as well as in technology-centered sectors.
- The findings from the report show that 93% of senior payments professionals are concerned about their ability to comply with changing mandates, which may impact the business and finance sectors, particularly in implementing real-time payments.
