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Taking the pulse of the payments markets (Part Two)

More voting at IPS2010, with some interesting views expressed.

The session opened with three short questions which were quite telling.

Question 1
Does the banking industry need to change as a result of the financial crisis?

93.2% Yes
6.8% No

Most of the audience are from banks, so that’s quite telling … and who exactly were the 1 in 20 who voted ‘no’? Oh yes, about 5% of the audience were from regulators (lol).

Question 2
Which areas will be impacted the most by changes made to avoid another financial crisis?

29.9% Regulations to limit bank activities
20.1% Increasing needs for transparency in bank reporting
19.4% Changes to bank governance
11.8% New capital adequacy rules
10.4% New liquidity rules
8.3% Limitations on bank compensation structures

I was surprised by the bonus scheme limits being bottom of the list … or, bearing in mind it’s mainly bankers in the room, was I?

Question 3
Are regulators co-operating closely enough to deliver a regulatory regime that is consistent?

2.7% Yes
27.2% Somewhat
36.4% Not really
33.8% No

Bit of a silly question really, as when did a regulator ever draft a regulation that was consistently implemented (see PSD, MiFID, Faster Payments …).

Anyways, we then had lots of dialogue about regulations and rules with the FSA Japan, Banque de France, Sir John Gieve (formerly of the Bank of England), Clifford Chance (lawyers) … all good stuff and source of commentary and blogging later.

After coffee, we then went into a corporate treasury focused stream with seven more questions for the crowd.

Question 1
Are you from:

58.5% A bank or payment services provider
11.5% A corporate user
30.0% Other

Question 2
Has the financial crisis increased or decreased your efforts to rationalise your banking partnerships?
72.9% Yes, we are rationalising
27.1% No, we are staying as we are

Question 3
Has SEPA made payments easier and cheaper for corporates?
38.9% Yes, SEPA has made it easier and cheaper
41.7% No, SEPA has not made it easier and cheaper
19.4% Don’t know

Question 4
Which area needs the most support for a corporate treasury operation?
35.9% Working capital
31.1% Liquidity management
20.8% Operational efficiency and BPR
12.7% Risk management

Question 5
Is your organisation working on full automation or outsourcing of the procure-to-pay cycle?
30.7% Yes, we are working on this
27.3% We are planning to
19.3% No, but we might in the future
22.7% Not interested in this

Question 6
How would you define the best payment services providers?
61.9% Excellence in End-to-End Processing
13.3% Operational Excellence
12.4% Good Value for Money
8.6% Innovative
3.8% Provides Working Capital Support

Question 7
In five to ten years, which of these are best placed to service corporate needs?
67.3% Banks
15.9% Non-banks
9.4% Corporates’ in-house banks
7.5% Technology firms

Bearing in mind that almost 60% of the audience came from a bank (Question 1), this answer may be somewhat skewed!

About Chris M Skinner

Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal’s Financial News. To learn more click here...

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