The UK’s payments modernisation agenda is colliding with industry illusion, according to research by ACI Worldwide.
ACI’s recent Payments in transition: Leadership in an era of transformation report found that while 69% of executives believe they’re payments leaders, only 44% say payments innovation is a priority.
Philip Bruno, chief strategy and growth officer ACI Worldwide, said the payments industry has reached a new level of complexity as innovation accelerates while regulatory and operational demands continue to grow.
“The industry is held back by persistent barriers that hinder innovation and modernisation, while powerful forces impacting experiences push the industry forward, driving progress simultaneously,” said Bruno.
While only 12% of respondents believe the payments industry is falling behind others in terms of innovation, over half of the same group (55%) believe that they are not making full use of the technology already available.
This disjointedness is what Bruno addresses through the research, claiming that “making modernisation a strategic priority, building resilience as conditions shift, increasing protection and strengthening the capabilities to exceed customer expectations” will be necessary for firms desiring any industry influence.
Cybersecurity and fraud stand as the largest barrier to innovative progress (77%), closely followed by regulatory complexity (63%) and organisational resistance (53%).
However, the largest drivers are evolving customer expectations (79%), regulatory mandates (61%) and fintech competition (58%), positioning regulation as a barrier and a driver.
The analysis shows a gap between perception and reality:69% of organisations consider themselves front runners, while only 44% prioritise the most impactful trait: payments innovation as a C-suite priority.
Ultimately, ACI calls on the payments industry to drive innovative practises forward to compete with the modernisation of legacy finance.
At this year’s Sibos, ACI spoke with Capital Pioneer about previous research on real-time payments for measurable economic uplift, reminding of the importance of orchestration.
