How to be a Payments Trailblazer – The Seven Habits of Highly Innovative Organizations
The new Culture of Innovation Index from Ovum and ACI identified segments—from banks to intermediaries to merchants to corporates—at the cutting edge (of innovation) across the payments ecosystem. But what is most notable about those segments that have reached ‘trailblazing’ status is the apparent lack of commonality between them. No one segment, nor one region fosters better innovation. In fact, what’s driving these segments/organizations to be best of breed is their own culture of excellence. The only thing they have in common is their attitude.
1. Enterprise-Wide Innovation
Those organizations at the top of their game have a strong central function tasked with driving innovation. This does not mean that it is limited to a single innovation team, but it does signify that digital transformation is well resourced, managed and executed.
2. Empowerment of Employees
Trailblazers are more likely to foster a culture of innovation at both the individual and team level throughout that enterprise-wide vision. Creative inputs are sourced from across the business to collaboratively shape new product and service ideas.
3. Technology Literacy
There’s a difference between being tech-led, and understanding how to take advantage of new and emerging technologies that enable your innovation strategy. Trailblazers prioritize technologies that allow them to ‘fail fast’ and ‘fail forward’ to support an agile innovation culture and develop a competitive edge.
4. Productization Prioritization
Every organization wants to bring new products and services to market, but the degree to which they are successful and how they drive this success is a key differentiator for Trailblazers. Leaders in innovation articulate the importance of delivery to market, and internally reward high-performance in this area.
5. Training for Transformation
Industry leaders understand the (potentially untapped) value of their human resources and reorganize to release it. This means training every employee to support new product and service development, whatever their role. In a well-oiled innovation machine, every cog has a part to play.
6. Comprehensive Cloud Plans
Trailblazers have a clearly articulated cloud strategy, particularly around public cloud and leveraging it for payments. This includes capitalizing on new cloud technologies, including containerization and microservices. They want to be first movers—not fast followers—reaping the rewards of public cloud.
7. Customer Centric Agility
Agile work processes are not a new phenomenon, but the level of flexibility that organizations have developed via their agile aspirations is the difference between trailblazing and lagging. Agility across technology and team mindsets is crucial to the ability to pivot in line with rapidly evolving customer demands and deliver ahead of the competition.
Meet with ACI Worldwide at Money20/20 USA 2019 in Las Vegas, October 27-30 (Veronese 2502) to find out more about our newly-released Culture of Innovation Index, conducted with leading analyst firm, Ovum.
Is your organization a digital trailblazer or a laggard? Find out how to encourage a culture of innovation by completing the Ovum Culture of Innovation Index. Click here to get started.
Related Blog Posts
Strong Customer Authentication in Australia: Reducing CNP Fraud and Streamlining eCommerce Payments
Minimizing fraud without harming the customer experience can be done – using the right tools
In 2017-18, card-not-present (CNP) fraud cost Australian eCommerce AUD $478 million and accounted for some 85 percent of all fraud on Australian-issued cards1. In 2016, CNP fraud in Europe represented 70% of all card fraud2. Seriously uncomfortable numbers.
2020 Fraud Predictions: What to Expect Across the Globe as Cybercrime Evolves
As we near the end of 2019, our payment experts have begun to take stock of the trends over the last year, and make their predictions for where they see the industry heading in 2020.
I sat down with our own fraud experts, Marc Trepanier, principal fraud consultant for North America, and Giselle Lindley, principal fraud consultant for APAC, to get their thoughts on what we can expect in the year ahead around payments fraud.
Real-Time Payments Hits its Stride in the U.S.
The recent announcement of FedNow in the U.S., the launch of cross-border services like SWIFT gpi, and multiple real-time payment systems including The Clearing House’s (TCH) RTP system and Zelle underline the fact that real-time payments are here to stay. The need to deliver real-time payment services to customers has never been more pressing for banks, credit unions, processors, acquirers and fintechs. However, the U.S. payments ecosystem – and its infrastructure – must keep pace with global markets to remain competitive, and interoperability between real-time payment systems will be key.
Strong Customer Authentication under PSD2: Consumer Education Will Be Crucial to Success
The European Banking Authority (EBA) has finally provided the promised update on SCA supervisory flexibility timelines – with a new hard deadline for migration completion of December 31, 2020. According to the new guidelines, migration plans of PSPs – including the implementation and testing by merchants – should be completed by that date, otherwise all players could face serious penalties for non-compliance.
Deep Dive: Latin American Fintech Market (Part 2)
To support fintechs’ development and create a more inclusive financial system, governments across the Latin American region should adopt different regulations. Some good practices implemented in other countries, like the U.K. or Singapore, could also be adopted in Latin America, such as temporary exemptions on fintech authorizations on behalf of regulating entities, or the creation of temporary regulation sandboxes in which fintechs can operate, evaluate their business models and offer their innovative products in supervised environments.
Women in Payments: “Make Failure Your Fuel”
ACI’s Darcy Locke, new business development principal, was recently appointed Chair of the American Financial Services Association (AFSA), Business Partner Board. During her two-year term, Darcy will preside over the AFSA Business Partner Board meetings, and concurrently serve as a member of the AFSA Board of Directors and Chair of the AFSA Business Partner Task Force.
Deep Dive: Latin American Fintech Market (Part 1)
There is a gap between what financial institutions currently offer versus what today´s customers want in Latin America, and this is where fintechs are earning a reputation for customer-centricity, personalization, quick response and seamless delivery. The relationship between fintechs and traditional financial institutions in Latin America has evolved from competition to collaboration, with the aim of efficiently working together and effectively scaling innovation, while also driving financial inclusion for the underbanked.
From API to AI to I: Banking Tech Gets Personal
Tired feet. Running out of business cards. Countless LinkedIn connections – sound familiar? This time of the year is conference season; the annual SIBOS (SWIFT) and Money20/20 USA gatherings spanning the autumn give attendees plenty of hot topics and talking points. My American colleagues refer to this season as “the fall.” I trust this to be an observation on leaves and fruit rather than a sequitur on the state of the fintech industry. Either way, it’s a good time to harvest, to take stock and to work out what we should be doing with the apparent abundance of innovative produce.
India’s Unified Payments Interface: Breaking the Billion Barrier
September brought about quite a stir in the Indian payments ecosystem, with three years passing since the launch of UPI (Unified Payments Interface), and the realization that UPI is closing in on a significant milestone: one billion transactions per month. In September 2019, UPI clocked 955 million transactions, amounting to 1.61 trillion rupees (INR), demonstrating the extent to which Indian consumers have exuberantly welcomed real-time payments.
The Need for Financial Inclusion in Developing Countries
The payments ecosystem globally is changing – and the idea of financial inclusion is increasingly featuring as part of long-term strategy. At a glance, financial inclusion means that people and businesses have access to important financial products, services and data, such as transactions, credit cards, payments, savings and insurance, and that these are delivered in a sustainable way. The challenge for banks lies in being more inclusive and meeting social needs, while remaining profitable and increasing market share.