In a real-time world where people can download movies or order books for their tablets in a few seconds, when overnight delivery may even be shifting to same-day fulfillment, payments that take several days to arrive are not keeping pace with consumer or business demands. Companies that can make a delivery overnight and track it each step of the way are not satisfied with payments that disappear into the ether for an indeterminate number of days before arriving at their destination.
Financial institutions, often find themselves supporting multiple point solutions performing similar if not actually identical, functions across lines of business. One asset manager admitted at a conference that it had 13 different SWIFT gateways, for example. The payments area in banking often has separate processes for different payment channels, such as Fedwire, SWIFT, CHIPS or a low-value clearing network. This sort of duplication contributes to the banking industry’s high level of spending just for IT maintenance — often estimated at 70 to 80 percent of IT budgets.