Although we’ve entered an era of seamless consumer payments, B2B financial services are lagging — so what will it take to catch up?
One exciting solution lies in cloud-native ecosystems. While you may hear ‘cloud’ and think of storage capabilities, cloud-native ecosystems can enhance payments processing, accelerate the uptake of new technologies, and lay the groundwork for better customer lifecycle management.
Breaking down these systems and uncovering new value-creating opportunities, Converge recently hosted a panel featuring leaders at the forefront of the cloud-native movement: Dharmesh Syal, Chief Technology Officer at Convera; Mick Fennel, Head of Payments EU for Temenos; and Nilesh Dusane, Global Head of Institutional Payments at Amazon Web Services (AWS).
A curated payments stack
Every company has customers with unique needs. When it comes to payments, there is not always a one-size-fits-all solution. That’s where a connected, cloud-native ecosystem comes in to bring services together and, as Fennel describes, “create a level playing field where you’re speaking the same language.”
The panel itself is an example of how cooperation in the cloud takes shape.
Providers such as AWS can provide value-added services in the cloud while Temenos offers a platform to bring those services together. Finally, a customer like Convera unlocks the power to curate a payments stack with the most useful tools possible.
“It’s almost like choosing Lego blocks. Cloud-native organizations are able to assemble their ideal payments stack in one place,” says Dusane. “That lets them dramatically reduce time to market.”
Harnessing the power of a network effect
To realize the full potential of the cloud, the Converge panel highlights more than just quick technological wins for individual players.
“The ecosystems, themselves, are the real value creators to make B2B commerce more efficient,” says Syal, and connectivity ultimately creates a network effect.
The next era of fintech innovation, Dusane outlines, is more akin to an open marketplace than a landscape of companies building independently in silos.
“You can both consume and supply services within someone else’s payments stack, and it’s a concept that goes both ways. It can help you get to market more quickly and give others visibility into what you’re trying to do.”
Consider the case of real-time payments. Heralded as the next big thing in payments, instant transactions could facilitate 24/7/365 FX transfers, boost security, and lower costs. A key challenge, however, lies in coordination. While the industry moves toward common standards — particularly in the form of ISO 20022 — removing friction from payments ultimately requires strong partnerships and transparency.
“Instant is driving change,” says Fennel. “Everyone wants quicker execution, but the actual benefits for customers will be a result of layered capabilities put together by the cloud.”
“It takes a village to raise a payment”
In Syal, Fennel, and Dusane’s view, the movement to cloud-native is about more than migrating individual pieces. Instead, organizations across the financial landscape can benefit from an iterative approach in the product and customer lifecycles.
“You need to have a cultural change, with engineers and developers embracing the cloud to run proofs of concept,” notes Dusane.
Whether it’s embedding multiple payment products into a single process, simplifying compliance, or addressing unmet customer needs faster, the next phase of B2B payments innovation can be achieved through collaboration.
“It takes a village to raise a payment, but it takes an ecosystem to innovate,” says Fennel. “The cloud gives us that platform.”
Want more insights on the topics shaping the future of cross-border payments? Tune in to Converge, with new episodes every Wednesday.
*The information shared on this blog is for informational purposes only and should not be considered financial advice. Please note that the opinions expressed on Converge are solely the opinions of the host and the guests, not Convera’s.
