For a long time, domestic payments was a straightforward business – volumes grew slowly, customers were largely satisfied with basic ACH and RTGS services and, with banks making good returns from deposits, the age and fragmentation of payment infrastructures was never a top priority to address.
This is changing:
- Non-cash domestic payments are now growing at over 8% per year, with mobile payments on the rise at a stunning 60% annually [McKinsey/Capgemini]
- Regulators are putting increasing focus on the stability of payment infrastructures
- Banks need to provide totally reliable commercial and consumer services in a world of 24×7 availability
- The long-standing gulf between ACH and RTGS is narrowing as one country after another makes the step into immediate payments while regional schemes, like SEPA, are blurring the traditional distinction between domestic and cross-border.
So banks are looking closely at their domestic payment systems and realizing that it’s time for a change in the back office as well.
Dovetail’s Domestic Payment Solutions are already delivering this change and, in the process, delivering customer advantage through:
- A single architecture for processing domestic payments of all kinds – ACH, RTGS and real-time
- Faster innovation – products which used to take months to bring to market can now be released in weeks
- Real-time information – payment status can be made available to customers regardless of payment type or channel
- Reduced operating costs and improved margins – due to a significant increase in straight-through-processing rates and a reduction in the number of legacy systems and middleware assets in back offices.
The solutions feature a set of core functions common to all banks needing to support domestic payments, with additional Dovetail Domestic Payment Solutions Options for specific business needs, such as payment enrichment, or the provision of agency services. The modular design ensures that the solutions can be easily integrated with a bank’s existing systems, reducing implementation effort and accelerating time to market
In common with all Dovetail solutions, the Domestic Payment Solutions are based on the Dovetail Transaction Architecture.