Digital transformation will put upward of 30% of the revenues of a typical European bank in play, and banks can remove 20-25% of their cost base by leveraging this digital shift to transform how they process and service.
Future role of APIs in payments development:
73% major role 22% minor role 5% no significant role. Global Jury view on significance of APIs over the next three years.
IoT devices that will drive the greatest payments volume:
29% wearables 26% retail 22% connected cars 14% connected home devices 7% insurance 2% smart city. Global Jury view of IoT devices that will generate payments volume in the future.
The percentage of institutions who believe APIs open to third-party developers will benefit their customer-facing proposition.
Banks who believe immediate payments will enhance their service and proposition to customers.
Banks in markets with live immediate payments schemes view this as a revenue driver for their institution.
Banks expecting immediate payments to reduce their costs, as the necessary improvements to payments infrastructure and fraud systems deliver broader benefit to the institution.
Banks who have recently, or are currently, investing in their fraud detection and prevention capabilities.
Financial institutions currently operating under a silo approach to fraud, despite the benefits of moving to an enterprise view across all payment types.
Financial fraud losses across payment cards, remote banking and cheques totalled £755 million in 2015, an increase of 26% compared to 2014.
Financial institutions citing concern over the reputational and customer impact of possible data breaches and fraudulent use in an open payments ecosystem.
Global non-cash transaction volumes experienced their most rapid growth in the past decade, growing 11.2% during 2014-2015 to reach $433.1 billion increasing pressure on systems to scale.
The average hourly cost of an infrastructure failure is $100,000 per hour and for a critical application failure per hour is $500,000 to $1 million.
Retail banks expecting that investment in their payments switch will reduce their operational risk.
The average time to repair is 1-12 hours with the average time to restore operations 1-3 hours.