Creating a Winning Formula

for Payment Factories

A huge opportunity exists for European banks to re-engineer payments processing for efficiency – but they need to construct “payment factory” ventures judiciously.

On the surface, the vast payments processing activities of European financial institutions are all heading in the same direction: towards the exploitation of socalled “payment factories”.

Amid increasing competition, new market regulations and eroded margins, banks have realised their future success depends on being able to process increasingly large volumes of transactions while at the same time delivering ever-richer payment products and services to customers at low-risk.

With many of their processes still locked into legacy systems and struggling to justify the risk and investment involved in creating a suitably robust payments platform on their own, most banks seek to partner. The obvious direction is to forge alliances with other banks and IT service partners to create a shared “utility” payments processing platform that can securely and reliably support growth and innovation while achieving sufficient economies of scale.

Andy Stewart is Global Head of Financial Services at Fujitsu; Quentin Creed is a Project Manager at Fujitsu; Francesco Casi is CTO for Cloud Sales in Fujitsu’s Global Business Group

Share this page