ACI Immediate Payments eBook

GET READY NOW FOR IMMEDIATE PAYMENTS

POSITION YOUR BANK TO ACQUIRE NEW CUSTOMERS

AND ESTABLISH NEW REVENUE STREAMS

YOUR WORLD IS CHANGING

DELAY CARRIES RISKS

THE ACI ADVANTAGE

DELIVER PROFITABLE SERVICES

PROTECT YOUR INVESTMENT

SPEED YOUR TIME TO MARKET

OUR WORLDWIDE PRESENCE


DELAY CARRIES RISKS

THE ACI ADVANTAGE





GET READY NOW FOR IMMEDIATE PAYMENTS 2


You continually work to provide payment services that appeal to customers and set you apart. But that task is getting more difficult. The expectations of your customers are changing continuously—and faster than ever before.

Immediate payments offers something for all:• Consumers get faster, reliable transfers and instant, accurate account balances • Merchants increase profits by getting paid sooner and eliminating interchange fees • Business customers can take advantage of better payment terms and improve their working capital

Your customers will want this capability. If you don’t offer it, your customers will find others who do. And being a fast-follower may not be good enough.

So, how do you plan to lead?


DELAY CARRIES RISKS

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1 YouGov survey on behalf of ACI, 2,000-plus UK adults surveyed, June 20152 Banking Technology/NETS/ACI Worldwide survey, June 20163 Faster Payments Scheme Limited website statistics4 Faster Payments Scheme Limited 5 The Association of Banks in Singapore, Media release May 5 2015, www.mas.gov.sg

25 to 34 year olds who will switch their bank account for faster payments.1

The number of faster payments processed in the U.K. in 2015— a 13% increase over the prior year.3

Respondents who believe real-time payments will displace existing payments.2

FAST in Singapore increased its transaction limit from $10,000 to $50,000 to address corporate users’ business needs. 5

One-off payments using the U.K. Faster Payments systems that are made outside of business hours4

82%

1.2 Bil.61%

50k

49%


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THE ACI ADVANTAGE





GET READY NOW FOR IMMEDIATE PAYMENTS 46 YouGov survey on behalf of ACI, 2,000-plus U.K. adults surveyed, June 2015

Other banks are not waiting. They are moving forward at full speed to offer

market-ready solutions for the first go-live. These competitors view immediate

payments as an opportunity to establish a competitive advantage. And they’re

right—research predicts that 45% of consumers who can’t get immediate

payment capabilities from their existing bank are likely to switch to a rival.6

You need to move forward now if you are to meet the go-live date.

Immediate payments offers a new business model for acquiring new

customers and expanding revenues.

WHAT IF YOU COULD…

“WAIT AND SEE” IS A HIGH-RISK APPROACH

Venmo transactions have grown 141% year-over-year to nearly 4 billion.

Source: Digital Transactions, November 2016

Deliver profitable services?

Protect your investment while enabling

immediate payments?

Accelerate your time to market?


DELAY CARRIES RISKS






Identify and monetize new opportunities for your bank. You will be able to offer products and services that leverage the strength

of your current customer relationships and your existing technology

infrastructure when you work with ACI. Not only products and services

your customers want—but ones they are willing to pay for.

Not only will you be able to deploy immediate payment applications on day

one, you will have the ability to quickly enhance and improve these solutions

to deliver continued value to your customers as the market matures.

LET’S TAKE A LOOK AT JUST HOW WE CAN SUCCEED TOGETHER.

With ACI, you have a partner with many years of experience deploying immediate payment solutions in multiple countries. We’ve helped banks prepare and implement solutions for U.K. Faster Payments, Singapore FAST and are currently helping banks get ready for Australia’s New Payments Platform (NPP).

THE ACI ADVANTAGE


DELAY CARRIES RISKS

THE ACI ADVANTAGE






THE BARRIER: TOO MANY UNKNOWNS ABOUT THE IMMEDIATE PAYMENTS BUSINESS CASE

It would be great to have the luxury of waiting until some of the uncertainty surrounding payment limits, timelines and network rules is resolved—but doing so will give your competitors too much of a lead. Failing to be proactive can lead to:

• Action paralysis that prevents you from meeting diverse market needs

• Introducing “me-too” services that fail to distinguish you from your competitors

• Needing to win back customers you’ve lost to competitors who were quick to develop immediate payments overlay services

10-20% cash replacement could add 290 to 580 billion credit transfer transactions.

McKinsey & Company, Global Payments 2016: Strong Fundamentals Despite Uncertain Times

“

”


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THE ACI ADVANTAGE






THE BEST PATH FORWARD: DEFINE, DEVELOP AND DEPLOY SERVICES THAT ADVANCE YOUR BUSINESS OBJECTIVESWhile uncertainty exists surrounding which immediate payment-based services customers will prefer, you can’t afford to give your competitors a headstart. Adopting a flexible and agile framework that allows you to anticipate and quickly respond to customer demand puts you in a position of strength.

Deliver profitable servicesACI can help you be among the first to offer new products—including unique services —to address different customer segments, both businesses and consumers. You’ll be able to evolve as necessary to incorporate emerging initiatives and new technologies.

Accommodate industry changesThe UP Framework provides you with the agility to accommodate additional new developments in the industry such as DCL (distributed consensus ledger), as well as proprietary systems from Apple, Samsung and others. You can also extend your ecosystem with partner offerings based off an extensible, flexible platform.

Create products and services that match market needs With the UP Framework’s™ payment product builder capabilities, you can augment the base real-time functionality with services such as mobile capabilities, budgeting, monitoring and alerts regarding available funds, improved supply chain management and more to attract new customers and cross-sell into your existing base to create new streams of revenue.


DELAY CARRIES RISKS

THE ACI ADVANTAGE






THE BARRIER: YOU NEED TO ENABLE YOUR CURRENT ENVIRONMENT TO ACCOMMODATE IMMEDIATE PAYMENTS 24/7

You’ve made a huge investment in your current systems—systems that aren’t currently capable of supporting the 24x7 processing required for immediate payments. But to get from where you are to where you need to be involves considerations such as:

• Avoiding redundant investment in integration efforts to enable another payment type

• Concerns that changes could jeopardize your core systems and processing stability

• The cost of custom development to connect your applications into a new network

of build cost is

projected to be for enhanced product capability, such as online

or mobile channel improvement,

cybersecurity, or payments

architecture modernization.

Source: Aite, Faster Payments: State of the Nation, June 2016

60%


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THE ACI ADVANTAGE






THE BEST PATH FORWARD: USE YOUR CURRENT SYSTEMS AS A FOUNDATION

Your current systems already contain customer data, fraud profiles, sanctions screening, transaction history and proven functionality to ensure payments are processed correctly. ACI can help you extend the substantial investment you’ve made in existing systems to incorporate immediate payment capabilities.

Protect your investment while enabling immediate payments When you partner with ACI, you’ll leverage technology backed by years of experience building resilient, scalable software solutions. You’ll turn your existing infrastructure into a springboard for immediate payments, reusing software where appropriate.

Quickly connect to a central infrastructureACI lets you link to the central infrastructure using a pre-packaged interface connection. You can easily comply with the unique rules and specifications of a specific scheme/network. And, the same instance can be utilized to connect to another country or region’s immediate payments central infrastructure.

Reuse capabilities you already haveACI enables you to layer the real-time capability onto your existing infrastructure and investment. With the UP Framework, you can leverage your existing workflows, business rules and business models, and extend only the elements unique to the new faster payments service.


DELAY CARRIES RISKS

THE ACI ADVANTAGE






The immediate payments landscape is evolving quickly and the competitive environment will be fierce as new ideas for using real-time processing are explored and exploited. A failure to enable a more progressive approach to managing payment services can lead to:

• A slow, cumbersome, sequential methodology incapable of delivering market-ready services

• Additional costs each time you want to add a new service or tune an existing service

• Falling further and further behind competitors who are more committed to innovating and developing new services

THE BARRIER: INTRODUCING NEW SERVICES AT THE PACE THE MARKET REQUIRES

Consumers who are interested in real-time payment and forward-looking spending analysis.

Source: The Digital Disruption in Banking: Demons,

Demands and Dividends, Accenture, 2015

48%


DELAY CARRIES RISKS

THE ACI ADVANTAGE






THE BEST PATH FORWARD: ACCELERATE YOUR TIME TO MARKETYour ability to meet customer demands—including those of sophisticated corporate enterprises—provides you with a significant competitive advantage. With ACI, you can get new products to market faster and keep them up-to-date.

Outpace the competitionACI will dramatically shorten your development cycles with proven, pre-configured, extensible architecture and pre-built components. By freeing up resources to create innovative new services that add value, you stay ahead of the competition and win new customers.

Minimize the delay and impact of new regulations ACI continually monitors the regulatory environment, making the required software updates to the UP Framework on a predictable schedule, so there are no surprises. You’ll reduce your compliance risk and can concentrate your resources on meeting customer needs.

Continuously enhance and improve products

The UP Framework enables you to make enhancements and modifications using configuration, not coding. Products and services can be updated more quickly and testing cycles can be minimized, so you can deliver proactive improvements more frequently to meet customer demands for new capabilities.


DELAY CARRIES RISKS

THE ACI ADVANTAGE






ACI WORLDWIDE POWERS IMMEDIATE PAYMENTS SCHEMES AROUND THE WORLD.

ACI provides faster payments processing solutions to over half of the U.K. direct members, supports Singapore FAST, New Payments Platform in Australia and is ready for The Clearing House in the US and Zelle.

ACI serves on the ISO 20022 Real-Time Payments Group.

ACI is a member of the Payments and Security task forces for the U.S. Federal Reserve faster payments initiative.

ACI chairs The Rules Committee of the International Payments Framework Association.

Copyright ACI Worldwide, Inc. 2016.ACI, ACI Worldwide, ACI Payment Systems, the ACI logo, ACI Universal Payments, UP, the UP logo and all ACI product names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.

11-2016

TO LEARN MORE ABOUT HOW YOU CAN GET READY NOW FOR IMMEDIATE PAYMENTS USING UP IMMEDIATE PAYMENTS, VISIT WWW.ACIWORLDWIDE.COM

http://www.aciworldwide.com/what-we-do/immediate-payments.aspx

Documents

ACI Immediate Payments eBook