ABSTRACT
The author’s view is that disruption to payments is not new and goes back to when computerization was first introduced to banking. Banks, as any business should, are rethinking their role in payments and reacting to pressure from regulations, etc. They are deciding whether to withdraw and utilize the services of third party providers. This will enable banks to concentrate on maintaining the customer relationship and therefore control over the eco-system without ownership.
This raises the question of, to what extend is the FinTech sector driving the payment evolution or are the users (consumers and businesses) really driving the pace and direction through their relationship with the financial institutions? The author’s view is that the users decide whether or not to initiate change. A negative user response historically and into the future will result in technology-driven initiatives failing.
Added to this mix are big data, cryptocurrency and possibly more interesting blockchain. The real success of payment innovation, primarily driven by banks (based or perceived customer need) is the introduction of faster or near-time payment services.
