The financial sector is often labeled conservative, but Payments proves otherwise. With two decades of experience, our Senior Consultant, Anna Holmgren, shares how the demand for instant payments is reshaping the way money moves and how new standards, such as ISO 20022, can spark innovation and foster collaboration between new and established players in the Payments market.
The financial industry has long carried a reputation for being traditional and conventional, where things are done as they always have been. This is unsurprising, as the sector has been shaped by strict regulations, demands for stability and customer trust, as well as heavy legacy systems and a risk-averse culture. These factors have historically hindered change and innovation, resulting in slower progress compared to many other industries. But is that really all there is to it?
Anna Holmgren, Senior Consultant at 421, has worked in Payments since the early 2000s. For her, it has always been an area within finance that, contrary to common perception, is in a state of constant transformation. It has evolved fro m cashing checks at the bank counter to today’s instant mobile payments, such as Swish.
Payments are always changing because consumers, businesses, and banks all share the same goal: They want their money faster. Higher liquidity enhances financial stability and enables us to reinvest surplus capital. In my assignments, I focus on Payments innovation, which can involve developing entirely new products for banks and other stakeholders, or implementing practical changes to existing processes.
Compliance creates no added value; innovation does
Over the years, Anna has worked at some of Sweden’s largest banks, focusing on product development, Payments for corporate clients, and on transformation projects with institutions such as the Swedish Central Bank. This has given her a unique insight into the challenges and needs of every player in the payment chain, from companies and their end customers to bank employees and IT departments.
Banks are often fully focused on managing day-to-day operations, and they need support in lifting their gaze and looking ahead. I always set ambitious goals for myself and my project teams. For me, regulatory changes are not just something to comply with in the moment, because compliance itself creates no other value than business as usual. The real value comes from the products we can build upon it, because that’s where opportunities for better customer experiences, long-term profitability and more efficient operations are found.
In the world of Payments, products can range from improving how companies handle and reconcile invoices to the payment services private customers use in their online banks. One of the major topics in recent years has been instant payments. These will not only function on a national level, but also across borders. This places extremely high demands on banks.
I’m convinced that future products will be built with an instant mindset. Today, users expect everything to happen immediately. However, this requires robust IT systems, vast processing power, and better security controls at the banks. Right now, a major transformation is underway with ISO 20022, a standard that harmonizes the market, enhances interoperability, and lays the groundwork for further innovation. My firm stance is that banks must treat ISO 20022 as an enabler for better, more profitable operations, not just as a requirement.
More collaboration on the Payments market
Looking out across a more level playing field, Anna sees many new entrants in the market, both FinTech companies and so-called neo-banks. She believes that traditional banks can learn from these newcomers.
I believe in more collaboration between all parties. New banks don’t carry the burden of legacy systems and have been highly driven in creating new, value-adding products for their users. At the same time, traditional banks possess invaluable knowledge and experience. I believe the best solutions arise when these worlds meet. In the end, innovation is about being open-minded, collaborative, and daring to look ahead, Anna concludes.
How is your organization approaching new standards and product innovation? Contact us and let’s find the best way ahead.
Share:
