Create Scale with a Leveraged Services Utility Model
Author: DXC Technology
Banks face a dilemma. The cost of dealing with an accelerating cycle of change in the payments industry is making it increasingly difficult to retain a fully proprietary, end-to-end payments function in house. At the same time, banks can’t afford to lose this essential link to their customers.
A way out of this dilemma is through a leveraged services utility model that provides a structure that will enable banks to stay in the payments business for the long term. Better still, it offers them a way to seize new business opportunities. A consortium of banks and a business and technology services provider can create a leveraged services utility model. By collaborating, banks can gain sizeable competitive advantage in the payments business. The goals of the strategy are ambitious:
- Slash the cost of payment processing
- Radically reduce the capital needed to provide future enhancements to a bank’s payment infrastructure and operations
- Give banks a way to deliver best-in-class payment services while retaining control over the customer relationship
- Leverage similar processes across multiple payment channels to gain efficiencies and increase productivity
- Provide enhanced revenue streams for banks that want to be first movers in the new market for utility payment services
This 12-page viewpoint paper walks you through the advantages of a leveraged services model, reviews the importance of payments and key drivers for change – customer requirements, new regulations, competition from nonbank entities and more standardization – and discusses how banks can respond to these changes. It outlines ways to build the right alliance and achieve the scale needed to build a new delivery engine based on the latest technological and operational approaches. Finally, the viewpoint details ways to deliver the full value of a leveraged services utility model and ultimately reap the benefits.
Read the full paper to learn more.