To build off that money-making momentum, banks can draw on three tactics to better differentiate their payments business and increase revenue and profitability. 1. Customer-centric 2. Open Banking for corporates insight, far beyond the typical of income, gender, value-added services marital status and location. Based on our research, Borrow from the retail business as a model and 69 percent of banks aspire to sell raw data within Focus on customer-centric and value-added services, zero-in on providing the last-mile of connectivity three years. Already 20 percent of banks monetize even if the payment itself is free. This might include to offer solutions to corporate customers as part data delivering actionable insights and 75 percent building an aggregator role in the online, mobile and of Open Banking ecosystems, even if it is invisible aspire to do so in the next three years. However, instant payment segments, and developing cross- to the end customer. For 17 percent of the survey customers’ data protection concerns (14 percent) channel payment platforms (for example, PoS, APIs and respondents, establishing internal start-up incubation and operational complexity (13 percent) are the microservices). Or, establish digitalized and differentiated units that are isolated from legacy processes to top barriers to monetizing customers’ data. customer experiences for priority segments, such as boost innovation will be the main priority for banks. tailoring service packages for commercial payments. Fraud management is a good example of a data- 3. Data monetization driven service. Other forms of data monetization, Stripe, for example, offers online payment processing Focus on monetizing data flows—selling raw data or such as offer presentment and redemption, are far for e-commerce businesses of all sizes through a suite delivering actionable insights—arising from payments less developed. The potential for data monetization 16 remains strong but will evolve over the long term of payment APIs. BBVA and other banks are launching activity to compensate for core payments becoming apps for ordering ahead and paying through the app. free, even if data plays are still early in their maturity with services more loosely aligned to core processing The apps automate payments but also lets customers cycle. Modern data analytics enables new levels of while other data monetization services progress reserve a table, order food, pick it up, check the bill, pay target segmentation where banks and their corporate more slowly from concept to revenue generation. 17 the bill and so on without waiting in line. These types clients can plan and execute more relevant products of integrated payments are now becoming standard and services based on much broader consumer in many quick service restaurant chains around the world, helping improve the dining experience. 12 GLOBAL PAYMENTS PULSE SURVEY 2019 TWO WAYS TO WIN IN PAYMENTS