case study · 2020-02-03 · customer loyalty: goods can flow faster and refunds can just as...
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CASE STUDY
Payment: Real-time Transactions Drive Payments Sector
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
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Quick Wins
Biggest Commercial Bank in Czech Republic Already Arrived in the Future
Modular Payment Hub for Processing Different Payment Types
E-Commerce Benefits from Instant Payment
Open Banking Leads to more Transparency
NetGuardians as Strong Partner for Fraud Detection
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Global trends, changing business models and innovations
pose new challenges for the world of payment transactions.
New payment providers simplify payment processes and
seemingly threat the existing ecosystem of banks and
financial service providers.
Seemingly – because banks also keep up with the times.
Within the framework of a comprehensive roll-out for the
Czech bank Česká spořitelna, valantic has implemented a
technology with which the subsidiary of the Erste Group
Bank AG in Vienna can now offer its clients the possibility to
make payments in real time.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Overview
Instant payment has long become a worldwide subject sustainably changing
the payments sector. As competitive and regulatory pressure rises world-
wide, financial institutes quickly realise that they have to redesign their
payment systems. The cost pressure for conventional payment architectures
also promotes the consolidation of redundant features. Furthermore,
consumers claim rapidity, convenience and simplicity for payments.
Within one decade, real-time payments around the clock have emerged as
key driver for innovations in the payments sector; in many parts of the world,
this technology has become the norm. The drivers of such payment systems
vary between cost reduction, increased efficiency and better customer
service – and, of course, the adherence of regulatory and compliance guide-
lines. One of the outcomes has been the European Banking Association’s
pan-European SEPA instant payments system RT1 introduced in 2017.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
83%
73%
47%
42%
Cost reduction and increase in efficiency
90%
88%
78%
Improvement of customer service
Increase in revenue
Competitiveness and agility
Fulfilment of legal and compliance obligations
Improvement of control mechanisms
Boosting time-to-market
What factors are currently influencing the technological change?
Source: Expert survey
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Biggest Commercial Bank in Czech Republic
Meanwhile, payments in real time have to support all possible payment types – including
P2P, B2B, B2C and C2B. This also expands the complexity and the additional technological
levels which have to be supported by banks, companies and traders. Of course, rapidity
and convenience are crucial for East Europe, too. Consequently, the Česká spořitelna in the
Czech Republic has recognised the need for a modern and future-proof solution.
With a balance sheet total of 33.7 billion euros, more than 10,000 employees, more than
600 local branches and five million clients, the Czech financial institution is the biggest
commercial bank in the Czech Republic. The subsidiary of the Erste Group supervises more
than 16 million clients in seven countries and is thus one of the
biggest bank groups in Central and East Europe.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
In payments, Česká spořitelna has already arrived in the
future. Thanks to valantic’s Real Time Payment Engine,
bank customers have the possibility to carry out
real-time money transfers in Czech crowns. The valantic
Real Time Payment Engine (RTPE) is an open, modular
structured payment hub solution which, in addition to
instant payments, supports the processing of many
different payment types such as SWIFT or SEPA. By integ-
rating different payment channels – such as e-banking,
manual recording of payments or payments via third-
party providers – the RTPE is particularly versatile and
highly flexible.
In addition, the real-time software comprises numerous
gateways, features a multi-channel and multi-instrument
capability and is easily adjustable to country- and bank-
specific requirements. Thus, all payment transaction
services which may arise in a bank can be processed
out of one central hub. This reduces costs and valuable
resources and additionally consolidates computing
operations in one system.
The web-based user platform monitors all payments,
visualises complex transactions in one GUI and gives an
overview of the current processing status. It provides a
reliable, scalable and very flexible technology collabo-
rating with current payment processing systems.
The high-performance solution provides an almost 100
percent Straight-through Processing (STP) which is of
vital importance taking into account the combination of
very small margins and the increasing pressure on
efficient payment handling.
Modular Payment Hub
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Initiation ClearingProcessing & Settlement
valantic Real Time Payment Engine (RTPE)
SEPA SCT, SDD, SCC
Domestic Payments
International Payments (SWIFT)
Instant Payments
Claim Processing
Investigations &Exceptions
+ more
24/7 Balance Module
Client Channels
Branches
CorporateBanking
E-Banking
Third PartyProviders
Manual PaymentCapture
Other PaymentSystems
Clearing Channels
Liq.Mgmt.Routing Directories
Clients & Accounts RMA Reporting Fraud / AMLCore
Banking
National Clearing
AccountStatements
CGi Module
PSD2 Module
Source: valantic
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Volumes of Mobile Payments via PayPal (in Billions US-Dollar)
Benefits for E-Commerce
Companies can benefit from real-time payments by using functionalities like
hourly payroll and just-in-time inventory management. Payments in real time
also permit to transfer more data together with the payment and to simplify
the coordination and reporting. Banks are now able to provide extended
services and to create further added value for their clients. In addition,
companies can also manage their liquidity positions more efficiently in the
entire financial supply chain.
The extended use of online and mobile devices supports this
trend which is given by digitalisation. Mobile payment solutions such as
Apple Pay or Google Pay also confirm this trend as well as the high customer
expectations regarding the convenience and flexibility of payments. In the
fields of e-commerce as well, real-time payments are a means of ensuring
customer loyalty: goods can flow faster and refunds can just as quickly be
credited to the consumer’s accounts. Compared to payment transactions
with credit cards, real-time payments are considerably less expensive for the
traders.
Source: statista.com
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Open Banking
As of the introduction of the Payment Services Directive (PSD2) in Europe,
banks and financial institutes have to give service providers which are
approved and authorised by the clients access to customer accounts. Open
gateways allow more space for managing personal finances and require even
more the real-time aspect in financial transactions.
The future banking and finance world can only benefit from more transpa-
rency and data from the day-to-day business. This knowledge will positively
influence numerous subsections and help to segment customers, reinforce
customer loyalty and accelerate checks, e.g the credit check.
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
AI Supports Real-Time Payments
For detecting criminal activities, the evaluation of data will
be particularly important, too – the more transparent the
processes are, the earlier fraud and money laundering can be
identified. Fraud detection is to be applied not only towards
external access but also towards manipulations from within.
Thanks to artificial intelligence, a solution of valantic’s partner
NetGuardians monitors all processes and transactions in real
time, regardless of the data volume. Thereby, no known fraud
patterns are searched but the entire behaviour of users and
bank clients is checked for anomalies, so that even risks arising
from new fraud methods which are not known yet are secured
as far as possible.
Customer behaviour
Employeebehaviour
Transactions
CASE STUDY | PAYMENT: REAL-TIME TRANSACTIONS DRIVE PAYMENTS SECTOR
Real-time payments also provide a platform for further innovation: processes
such as e-invoicing and e-commerce payment solutions are also supported
by real-time payment systems and allow the customers more control over
their money. Consumers as well as companies directly pay from their
accounts.
This payment method is cost-effective, fast, secure and enables an
immediate verification and confirmation of the credit balance. It helps
traders to reduce their exchange costs and helps banks to maintain the
direct relationship to their customers. The most important, however, is that it
meets the consumers’ expectations in today’s world – and is already reality in
the Czech Republic.
Source: NetGuardians
About valantic
valantic Financial Services Automation is a business unit of the global
valantic Group (www.valantic.com), a worldwide leading supplier of software
solutions in the sections of Electronic Trading, Payment and Transactions.
valantic supports leading banks and financial institutes on their course for
growth by means of standardised or customised solutions in the field of
Digitalisation, Open Banking, Automation and the simplification of business
operations.
In addition to the development of banking solutions, valantic is experienced
consulting and producer-independent implementation partner for the
financial industry. For more than two decades, the company supports clients
such as Erste Bank, Santander, DZ Bank or UniCredit Group. More than
250 IT and finance specialists ensure a smooth and personal service from
different locations. The valantic Group is taking the lead in digital transfor-
mation and belongs to the leading digital solutions, consulting and software
companies with more than 800 developers and consultants worldwide.
You Want to Learn More?
For more information please visit our website:
www.valantic.com
or contact us at your convenience.
+49 391 59809-22
valantic FSA
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