Transaction banking: New opportunities to spot

Abstract

Payments are essential for the functioning of the global economy and banks have done well from payments ever since the establishment of organised banking in the 15th century. Times have changed, however. New players have entered the market, some banks have abandoned payments as the rules and regulations have become more complex, and payments have increasingly been seen as a commodity, even comparable with the public good. For banks not to lose ground, they can look at smart possibilities to provide good service to their customers while dealing with limited resources. This paper suggests three opportunities: sourcing with a layered approach, with only individual processing steps in the value chain to reduce and share cost; co-strategies, managing the four Cos (connectivity, coopetition, collaboration and co-creation); and re-evaluation of products offered to achieve a good basis for a sound product line.