In our daily lives we are facing new choices in how we consume products and services:
If this works for content and cars, why can’t it work for software? It can. These same choices are now available to banks and PSPs as they approach enhancing their legacy systems.
Software as a Service (SaaS) enables this flexibility and has emerged as a game-changing technology in the payments industry. Financial institutions are embracing SaaS to drive smarter automation, improve workflows, and migrate to the cloud. In this blog, we will explore the benefits of SaaS and cloud technology in payments, and how they are transforming the banking industry.
The payments industry is one of the most complex and highly regulated sectors in finance. With the growing number of payment channels, payment types, and payment processing requirements, traditional payment processing methods have become less efficient and more expensive. SaaS solutions in payments address these issues by automating payment processing and enabling intelligent routing, resulting in faster and more accurate payments.
SaaS solutions for payments offer real-time access to transaction data, allowing banks to monitor and manage payment processing in real-time. This eliminates the need for manual intervention and reduces the risk of errors. With smarter automation, banks can reduce operational costs, improve efficiency, and provide better customer experiences.
The shift from on-premise software to cloud-based solutions has transformed the payments industry, providing banks with secure and scalable computing power. Migrating payment processing to the cloud offers several benefits, including increased flexibility, reliability, and cost-effectiveness.
Cloud deployment models, such as private cloud, public cloud, and hybrid cloud, offer different features and benefits.
There are three main models of cloud computing:
Private cloud – offers the highest level of security and is favored by banks, but they may not be as efficient as other models. Private clouds are dedicated solely to one company, even if they are not managed by the company itself.
Public Cloud – the most cost-effective, scalable, and flexible of all cloud models, but they are perceived as a higher level of risk. The cloud provider offers their services to anyone, but each user can (and will) build their own private and protected space within that.
Hybrid cloud – consist of two or more separate clouds that are linked to provide services as needed. This model combines the flexibility and control of the private cloud with improved cost-efficiency which makes it easier to quickly scale operations.
The payment processing workflow involves multiple steps, including data entry, validation, and verification, which are time-consuming and prone to errors. SaaS solutions in payments streamline these workflows by automating repetitive tasks and providing intelligent routing of payment transactions.
In conclusion, the benefits of SaaS and cloud technology in payments are clear. Financial institutions are increasingly turning to cloud-based solutions like valantic Financial Services Automation (FSA) to support them on their transformational journey. With valantic FSA, banks can enjoy the benefits of SaaS and cloud technology while also leveraging the advantages of different cloud deployment models and licensing models. As the payments industry continues to evolve, valantic FSA and other innovative solutions will play an increasingly critical role in driving growth and providing better experiences for customers.
Challenge and opportunity - Crypto assets clearing and settlement
Challenge and opportunity - Crypto assets clearing and settlement