EBAday 2024 in Lisbon brought together industry leaders, policymakers, and innovators to discuss the future of the European payments landscape. The event highlighted the complex regulatory environment, the evolving role of central bank digital currencies (CBDCs), the critical infrastructure needs for instant payments, and the emerging opportunities in identity management.
Join us as we delve into the critical discussions and innovative solutions presented at this year’s event.
The payment regulatory landscape in Europe is increasingly complex, with commercial banks struggling to keep pace with numerous regulations and initiatives, including Swift ISO 20022. The relentless rollout of these requirements has left many banks barely managing compliance, often leading to sub-optimal implementations. JP Morgan’s $16 billion investment in compliance IT underscores the immense pressure on financial institutions.
Our valantic FSA view: At valantic FSA, we see a significant opportunity for product and service companies to offer specialized solutions that can ease this burden for banks, ensuring compliance while exploring potential commercial benefits.
The ECB’s push for a digital euro contrasts sharply with public indifference, as everyday transactions continue seamlessly with current technologies. Key questions about the digital euro’s relevance, its intended use cases, and interoperability with cross-border payments remain unanswered, highlighting a disconnect in the market.
Our valantic FSA view: With the promise of PSD2 and Open Banking, there’s potential to extend banking services to the unbanked in Europe. However, the digital euro aims to reduce reliance on American payment processors, a goal already addressed by instant payments. This ambitious move demands more work from banks and clear communication of its benefits.
Instant payments, both domestic and cross-border, require robust support infrastructure beyond just software and systems. Banks need 24/7 support to handle issues like unprocessed payments, which can disrupt trade and logistics. Without this, instant payments risk becoming a retail-only solution, which may not be financially sustainable for banks.
Our valantic FSA view: Fraud prevention is another critical concern. Banks are urging governments to educate the public on fraud risks, as they often bear the financial burden of customer claims.
The rise of “identity-as-a-service” providers offers a new frontier for innovation. Our X-Gen use case demonstrates potential in this space, and there’s scope for integrating with multiple proxy resolution services to enhance identity management solutions.
Our valantic FSA view: In summary, the European payments landscape is fraught with regulatory challenges but also ripe with opportunities for innovation and collaboration. At valantic FSA, we’re committed to helping banks navigate this complex environment and uncover potential avenues for growth and efficiency.
Navigating talent market trends in Financial Services Technology
Navigating talent market trends in Financial Services TechnologyOpportunities for payments arising from the new regulations
Opportunities for payments arising from the new regulations