1.A Growing Impetus in Banking to Mitigate Risks and Reduce Costs
In the banking industry, a significant shift is noticeable as the pressure to reduce risk and costs grows exponentially. A consistent need to streamline, automate, and alleviate pain points, thereby reducing costs, is reverberating across industries, geographies, and institutions. This theme is not merely a trend but an institutional necessity that cuts across the industry's entire hierarchy.
Interestingly, the evolution isn't just defined by the size of the institutions but rather the agility they demonstrate in embracing change. While larger, more global banks are establishing themselves as 'first movers', it's observed that smaller banks, leveraging their nimbleness, are swiftly keeping pace. This evolution reflects the industry's responsiveness, not just to internal dynamics but also external influences.
Notably, banks' customers are at the heart of this transformation. An improved cross-border experience is not just a competitive advantage but a necessity to retain and satisfy customers. Customer feedback is becoming a crucial indicator of the effectiveness of these changes, underlining the importance of a customer-centric approach.
The narrative of larger institutions leading the charge while smaller entities follow suit is subtly shifting. It is believed that the pace of change can be dictated as much by the smaller, agile entities as the larger players. The dynamic nature of this industry transformation underscores the possibility that innovation and adaptation could emerge from any segment of the banking industry.
2.The Era of Collaboration
The financial landscape is witnessing a shift in its very essence. It's not purely about competition anymore; rather, the spotlight is now on collaboration.
Public sector organisations, including central banks and regulators, are providing the framework, setting the tone and direction. However, the responsibility to inject innovation and create tangible solutions is increasingly being entrusted to the private sector.
One of the key factors driving this shift is the banks' recognition of their limitations. Across the industry, banks have acknowledged that they often lack the requisite internal resources or skills to innovate at the pace required in today's fast-changing world. This has opened the door to financial market infrastructure (FMI) innovators, who bring fresh perspectives and agile methods to the table.
The formation of RTGS.global’s Banks Working Group offers a compelling example of action-oriented collaboration. Comprising over a dozen market-leading banks from across the globe, the Banks Working Group aims to drive industry innovation in payments and liquidity management, as well as adapt to emerging regulation and central bank guidance.
This group provides a platform for the open discussion of pain points in global settlement, including the ongoing lack of transparency in cross-border settlements and the need for inefficient and costly liquidity pools in nostro and vostro accounts worldwide. The group also explores the implications of the trend toward real-time settlement and the role of RTGS.global in addressing these challenges.
By inviting banks to join the Banks Working Group, RTGS.global is encouraging the industry to harness the power of collaboration, thereby driving the industry towards a more integrated, efficient, and transparent future. This call to action underlines the commitment to leveraging collaborative solutions for the benefit of the entire industry.
3.Interoperability: The Building Blocks of Connection
From London to Madrid, Uzbekistan and South Africa, across the recent events we attended, one term echoed consistently - Interoperability. This term represents more than a mere technical requirement; it symbolises a vision for a seamless financial ecosystem that draws participants closer to an integrated network.
By positioning ourselves as an enabler and a connector that can build bridges between various financial market infrastructures, we are creating a more seamless exchange of value. There is an unmistakable opportunity here for RTGS.global to act as a linchpin, fostering the creation of linkages among multiple industry players.
Our potential to foster interoperability is significant. Positioned outside the traditional, pre-digital structures of institutions like SWIFT, RTGS.global is uniquely equipped to cultivate a smoothly interconnected value exchange. This is possible due to our ability to transcend the limitations of conventional financial infrastructures.
In a globalised economy, the necessity of fast, efficient, and secure cross-border transactions is crucial. With our unique position, RTGS.global can enhance interoperability in the world’s financial system, marking the onset of a more efficient, secure, and inclusive future.
