• Piecing together the global payments puzzle

October 2018

Over the past few years, the payments landscape has undergone major transformation, driven by advances in technology and ever-increasing client expectations. It continues to evolve rapidly – with new regulations and updated market infrastructures coinciding with new technology and new industry initiatives that will drastically reshape it

Amidst all these changes, however, all future payment schemes will need to deliver on the three core needs of end users: 1) security, 2) speed, efficiency & transparency, and 3) global reach.

With so many new elements to factor in, it’s easy to lose track of the big picture. Evolution has happened so quickly, with much still ongoing, that there is a risk of innovating for innovation’s sake, with individual developments not fully in harmony with the needs of end users, or with the overall development of the payments industry.

‟Building a future global payments network that is fast, efficient, transparent and secure is the payment industry’s key task over the coming years, and one that industry players must tackle and solve together – fitting into place the many necessary components like pieces in a giant jigsaw puzzle”, comments Marc Recker, Global Head of Institutional Market Management, Cash Management, Deutsche Bank.

In a new white paper, Deutsche Bank critically assesses how the current pieces stack up against the core needs of end users. The paper summarises the main changes being driven by regulatory and governmental bodies, industry players and infrastructure providers, and non-bank competitors; what they do; whether they are doing enough; and what further pieces could – or should – be added to complete the picture.


Marc Recker

Global Head of Market Management | Cash Management | Deutsche Bank


When it comes to security, the rise of cybercrime, fraud and money laundering has galvanised pressure on the payments industry and its market infrastructures to guarantee the security and integrity of payment systems. New threats have arisen as a result of new technologies, and there is an increased need to protect information exchanges from unauthorised disclosure to third parties. Whether banks decide to act alone, or in combination with FinTechs or RegTechs, technology will be the key to stronger security.

Speed, efficiency and transparency

Massive strides have already been made by the payments industry to increase the speed, transparency and efficiency of payment schemes, and this will be taken to an even higher level as key market infrastructures migrate to ISO 20022, real-time payment platforms proliferate, and emerging technologies unlock further potential.

Speed, efficiency and transparency must now be embedded in the entire value chain – from new client adoption through to reporting and exceptions handling. This will be coupled with real-time intraday analytics and reporting capacity, and real-time payment fraud and surveillance controls.

Reach and network

In terms of global reach, in the immediate future the correspondent banking network must continue to leverage its strengths. What the industry needs to strive for now is full adoption of SWIFT gpi by banks, making this the new standard, and incorporating additional elements such as pre-validation in the next stage of the evolution.

Looking to the future

How, with whom, and in which form banks fulfil the core needs of the end users of payment schemes over the coming years depends largely on their preferred business model. For its part, Deutsche Bank sees Open Banking and API technology as an important area of focus – not only to ensure regulatory compliance, but also to explore its business potential to enhance the client experience and enable more flexible integration of banking services.

To this end, Marc Recker notes that ‟As a bank, we are striving to create a unified API ecosystem which will support Open Banking business models enabling our clients, partners and FinTechs to interface and integrate with us in a seamless and fully secure manner.”

Click below to download the white paper and learn more about the current payments puzzle and the payments landscape of the future.

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