Sibos in Toronto is looming once more and this year, I am anticipating more people than ever before will be looking to engage with Earthport.
Why is this? Quite simply, we are approaching an important stage in our market development. We have spoken frequently over the past two years about how the world is changing and the level of disruption in the financial system.
However, over the past 12 months, the momentum we have seen suggests there is no turning back. We are not quite at a tipping point but I am confident it will not be too long before there is widespread acknowledgement that new ways of conducting business have become the norm.
Amid this frenetic period of activity, the banking system will be changed forever. However, I expect we shall see some shake-out in both the fintech and banking sectors, as some start-ups struggle to achieve critical mass or scale and banks continue to suffer from margin compression.
Payments will be at the heart of this battleground with the correspondent banking system, which has been under pressure for some years, giving way to new payment methods that are more transparent, reliable and cost-effective. This is where Earthport comes into the picture.
Of course, we need banks to redefine their models and set themselves on a path of sensible innovation, rationalisation and focused strategic growth. Banks are our deeply valued clients and we believe that an offering which provides an innovative connection point that reduces fees, payment stopping-off points, unpredictability around settlement and redundant capital spend can be very compelling for banks. We see it as being more in tune with today’s climate and better suited to handle growing volumes.
This is the clear message I am taking to Toronto – that assembling best of breed solutions is no longer a curious idea or classified as wow-factor innovation. They are pragmatic and necessary for the 21st century payment ecosystem. That’s why I am expecting increased interest in Earthport. Payment concepts like our own offering have moved into the mainstream and now is the time to step up our efforts to tell our story.
Just consider that SWIFT themselves have responded to growing unrest with their global payments initiative (gpi), which is a step in the right direction but will need to be combined with other solutions and partnerships to address the long overdue need for change.
I really believe that banks have to think long and hard about this, and bearing in mind that transaction banking has moved up the hierarchy to become an attractive, stable, revenue-generating discipline, it is now a prerequisite.
So I am hopeful that Sibos will be rich in the sort of dialogue that we want to have with potential clients. The benefits are manifold, not just for banks, but also for their clients. It really is time for new models to become an indispensable part of the mainstream and we are eager to ensure that Earthport becomes pivotal and embedded in that evolutionary process.
Find out what Earthport is doing at Sibos and where to find us here.