That being said, the general expectation [we see] from both sides of the market [i.e., banks and FinTechs] is that market share will shift from traditional banks to FinTechs.But with the aforementioned prevalence of ISO , said Janas, there’ll be more optionality and more alternative payment methods available for banks’ clients. ISO will manifest through two ways, he said, through standardization and more structure in data, as instructions between parties will be automated, and more transactions will be processed in a straight-through manner, without human intervention.
Processes such as anti-money laundering AML and sanctions georgia mobile database screening will also be more fully automated.Against that backdrop, said Janas, there’s room to differentiate competition when it comes to cross-border payments.Build vs ‘Borrow’Banks, he said, must mull whether to build out new cross-border capabilities on their own or whether they should borrow those capabilities from someone else. He advised that local or regional banks build out the functionalities in their home markets, but to borrow those capabilities from providers such as Citi outside of their presence counties.
After all, said Janas, we wouldn’t expect every bank in the world to have [financial market infrastructure] connections and operate in markets, as Citi does — both those capabilities can be tapped via APIs.Citi, for its part, has elevated its cross-border clearing flows through the past few years, and now has more than banks enlisting the firm’s / payments services for different use cases as transactions are settled on holidays and beyond the confines of banking hours.
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