Real-Time Payments to Drive Revenue Growth and Provide Launchpad for Innovation, According to More than 80 Percent of Bank Executives in New ASEAN Benchmark Data

13-Mar-2018 Intellasia | BusinessWire | 8:00 AM Print This Post

ASEAN spending growth outpaces other regions, as financial
institutions seek to leverage real-time payments for payments
modernization and innovation, per new benchmark data from Ovum and ACI
Worldwide

NAPLES, Fla.–(BUSINESS WIRE)–#ASEAN–ASEAN financial institutions are focusing increasing investment on
payments modernization, with real-time payments capabilities serving as
the first step to digital transformation across consumer and corporate
services, per new benchmark data, “2018 ASEAN Payments Insight Survey:
Real-Time Payments Modernization and Innovation,” from ACI
Worldwide
(NASDAQ: ACIW) and Ovum.

ASEAN member states, driven by market forces and developments in the
wider Asia-Pacific region, are looking at how real-time payments can act
as a catalyst for payments modernization and future innovation – though
member states are currently at different levels of technical and
economic sophistication, as reflected by investment plans.

Enthusiasm for real-time payments, a clear understanding of the benefits
of open APIs – used to connect banking services with instant
payment-enabled services – and proactive collaboration between central
infrastructures and banks put the ASEAN region in a strong position to
realize multi-currency, cross-border real-time payments.

Principal study findings include:

Real-time payments will enable innovative new service offerings and
drive revenue growth

  • 82 percent of respondents feel that real-time payments will drive
    revenue growth for their organizations and 77 percent say they will
    save money.
  • 86 percent of respondents overall (100% in Vietnam and Malaysia)
    believe that real-time payments have, or will, improve their customer
    services, and 89 percent have developed or are developing new services
    for consumers based on instant payments.
  • 78 percent of ASEAN institutions think that real-time payments will
    replace the use of payment cards over time.

Clear understanding of benefits of open APIs amongst ASEAN banks

  • 97 percent of respondents in ASEAN agree that the business benefits of
    open APIs are clear, versus 90 percent globally and 88 percent across
    Asia.
  • ASEAN banks are less clear on strategies for the creation of open APIs
    for third-party use – 84 percent compared to 87 percent globally and
    91 percent in Asia.

ASEAN spending growth outpaces other regions

  • 64 percent of ASEAN financial institutions forecast investment in
    payments to increase in the next 18-24 months, compared to 56 percent
    in the broader Asia region and 53 percent globally.
  • Planned payments investment varies widely across ASEAN; 53 percent of
    Singapore expect investment to increase a lot (5+%) compared to 30
    percent in Indonesia and 13 percent in Malaysia and Thailand.
  • Reducing total cost of ownership is a top three investment priority
    for most respondents (47%), with a move away from in-house development
    toward customized third-party software or off-the-shelf vendor
    solutions (from 8% to 13% over the next 2 years).

“Short-term investment plans are setting the base for long-term,
strategic developments, as many organizations address core ‘hygiene’
factors to create a sound platform for payments innovation,” said Leslie
Choo, GM & vice president – Asia, ACI Worldwide. “Getting the house in
order will be a precursor to developing services that enhance the
customer experience, and truly reaping the benefits of innovation. The
prospect of real-time, cross-border payments in the ASEAN region – and
beyond – is another reason why ASEAN financial institutions are
increasing investment, and the enthusiasm for real-time demonstrates
that bank executives see this as a primary catalyst.”

“The rapid development of real-time payments – in Asia generally but in
ASEAN countries in particular – has lessons for banks, central
infrastructure operators and merchant service providers around the
world, as they work towards the realization for the first cross-border,
multi-currency, real-time payments network,” said David Bannister,
principal analyst, Ovum. “The survey results show that ASEAN banks are
focusing increased investment on ensuring that they are able to
participate and compete in the emerging ecosystem; security – a
prerequisite in payments – is front of mind for many, but all are
looking ahead to the innovation opportunities created by the combination
of real-time payments and API-based open banking.”

To receive a complimentary copy of the report, please visit: www.aciworldwide.com/money2020asia

* Methodology and Demographics:

For the 2018 Ovum Global Payment Information Survey, Ovum and ACI
Worldwide partnered to run a 22 question survey across a sample of
retail banks.

Overall, the 2018 Ovum Global Payment Information Survey included a
total 1,032 executive respondents across 13 industry sub verticals in 19
countries, resulting in over 225,000 separate data points on current
perceptions and investment plans around payments technology on a global
basis. This includes 277 retail banks, of which 75 operate in the ASEAN
countries.

The aim of the survey was to understand the current attitudes, business
objectives and operational pain points facing each respondent company,
in turn creating a unique viewpoint on the role that investments in
payments technology will underpin both the immediate and future
objectives of each institution.

The main topics of focus for the survey include:

  • IT investment plans around payment services
  • Core business objectives and priorities
  • Payment systems architectures including SaaS
  • Plans and experiences around both open banking and real-time payments

Fieldwork ran between January 2018 and February 2018, providing a clear
insight into current thinking in the industry across financial
institutions in the region.

This paper focuses on the survey findings for banks in the ASEAN region.
For more details about the findings, please visit www.aciworldwide.com
for further information.

*Association of South East Asian Nations (ASEAN) consists of
Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam,
Laos, Myanmar and Cambodia.

About ACI Worldwide

ACI Worldwide, the Universal
Payments
 (UP) company, powers electronic
payments
 for more than 5,100 organizations around the world. More
than 1,000 of the largest financial institutions and intermediaries, as
well as thousands of global merchants, rely on ACI to execute $14
trillion each day in payments and securities. In addition, myriad
organizations utilize our electronic
bill presentment and payment
 services. Through our comprehensive
suite of software solutions delivered on customers’ premises or through
ACI’s private
cloud
, we provide real-time, immediate
payments
 capabilities and enable the industry’s most complete omni-channel
payments
 experience. To learn more about ACI, please visit www.aciworldwide.com.
You can also find us on Twitter @ACI_Worldwide.

© Copyright ACI Worldwide, Inc. 2018.

ACI, ACI Worldwide, ACI Payment Systems, the ACI logo, ACI Universal
Payments, UP, the UP logo, ReD, PAY.ON and all ACI product names are
trademarks or registered trademarks of ACI Worldwide, Inc., or one of
its subsidiaries, in the United States, other countries or both. Other
parties’ trademarks referenced are the property of their respective
owners.

Product roadmaps are for informational purposes only and may not be
incorporated into a contract or agreement. The development release and
timing of future product releases remains at ACI’s sole discretion. ACI
is providing the following information in accordance with ACI’s standard
product communication policies. Any resulting features, functionality,
and enhancements or timing of release of such features, functionality,
and enhancements are at the sole discretion of ACI and may be modified
without notice. All product roadmap or other similar information does
not represent a commitment to deliver any material, code, or
functionality, and should not be relied upon in making a purchasing
decision.

Contacts

ACI Worldwide, Inc.
Dan Ring, +1 781-370-3600
[email protected]
or
Christopher
Taine, +49 (0) 89 45230 557
[email protected]

 


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