TREND 1TREND 2TREND 3TREND 4TREND 5 GEN Z RISINGUX IS THE NEW GOLDMOBILE HIT ITS GROOVEREWARDS REVOLUTIONTHE NETWORK EFFECT TREND 6TREND 7TREND 8TREND 9TREND 10 FINTECH AND BANK FUSIONAN ARMS RACE IN CODEPAYMENTS EVERYWHEREFRAUDSTERS INNOVATE TOORIP AND REPLACE REQUIRED TREND 10 RIP AND REPLACE REQUIRED Traditional payments players cannot survive without a complete overhaul of existing systems. Payments transactions have long been processed, cleared and settled over several days. This is laughable in today’s world—much less tomorrow’s—where so much happens instantaneously. The hard truth is that existing architectures have reached terminal velocity. They are no match for the industry’s quantum leap in speed, enhanced feature functionality or messaging standards. A confluence of forces is framing the imperative for payments modernization. Real-time payments is very real—39 countries have already implemented immediate payments, according to the InstaPay tracker. There is also the push to enable tokenization and new overlay services such as API integration and proxy and delivery services. In addition, nearly half of the global messaging standard ISO 20022 initiatives are happening in payments, moving beyond the European Union into North America. For example, ISO 20022 adoption is a strategic part of payments modernization in Canada. Payments Canada started a multi-year initiative to transform the systems and rules essential to the nation’s payments ecosystem. These changes include imminent enhancements to existing systems to speed up transactions, as well as longer-term improvements such as the implementation of a faster payments capability, a new core clearing and settlement system, and as noted, the introduction of ISO 20022, which will facilitate the transition from paper- based invoicing and checks to digital processing for these functions. Many banks and payment service providers are contemplating or have already begun overhauling their payments infrastructure. Ripping and replacing will give payments companies newfound technical flexibility. Today’s technology stack is monolithic. It is composed of large, inflexible systems. Reorganizations or replacements are by nature very costly and time consuming. Tomorrow’s technology stack is the exact opposite. It is composed of open and flexible systems. It is inherently agile and can reorganize to predict and meet market needs on short notice. A must for payments players today and in the future. Copyright © 2017 Accenture. All rights reserved. DRIVING THE FUTURE OF PAYMENTS 10 MEGA TRENDS | 13