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Instant payments are the new standard: Can banks keep up?
Instant payments are the new standard: Can banks keep up?

Yahoo

time3 days ago

  • Business
  • Yahoo

Instant payments are the new standard: Can banks keep up?

Ten seconds. That's all it now takes to move money across the eurozone under the SEPA Instant Payments (SEPA IP) initiative. Around the clock, every day of the year, batch processing has become a thing of the past. SEPA Instant Payments has been around for eight years, and with compliance deadlines looming, transformation is accelerating across EU institutions. October's requirement for outbound instant eurozone payments is a major catalyst. Yet there's still a gap between regulatory requirements and operational reality as many European banks are struggling with legacy infrastructure limitations, inconsistent user experiences, and incomplete 24/7 processing capabilities. Meanwhile, non-EU banks are under mounting pressure to keep pace with rising expectations, and modernise their outdated systems. While non-EU banks may have more time on paper, with the EU giving non-eurozone banks until 2027 to comply with SEPA IP for both sending and receiving payments, that breathing space could be a false comfort. Regulatory lag shouldn't be mistaken for strategic leeway – customer expectations are already shifting, and the clock is ticking. Engineering the leap to instant Legacy systems were never designed for instant payments. Historically, banking systems operated comfortably on batch processing schedules - downtimes were predictable and maintenance windows were scheduled. Then SEPA IP came along and eliminated such luxuries, mandating a constant readiness that legacy systems cannot sustain. Unfit technology isn't the only problem non-EU banks face. Their infrastructure often sits in distant time zones, designed for settlement during their own domestic business hours. Banks now have two gaps they must bridge: the tech chasm between current legacy abilities and where they need to be, and the geographical divide between business and customer. They must work out how to bridge them without sacrificing day-to-day service. Minor tweaks to legacy systems are inadequate. Ripping out old infrastructure and replacing it with a modern core is largely unworkable, despite any long-term benefits. So, it's an incremental approach that will help banks bridge these gaps. Incrementally aligning legacy systems with SEPA IP's 24/7/365 model should be an immediate priority for non-EU banks, allowing them to swiftly meet regulatory deadlines and increased customer expectations without major disruption. Liquidity at the speed of now Another consideration for non-EU banks is how real-time transactions fundamentally alter liquidity management. Traditional liquidity frameworks, established around batch processes and fixed settlement windows, now face obsolescence. Yet many banks are still managing liquidity with manual processes and spreadsheets. This won't work with SEPA IP. Under this new system, liquidity needs are immediate and continuous - demanding dynamic management that legacy systems were never designed to accommodate. Banks need to be able to predict and manage liquidity in real-time. Accurate, instant forecasting is crucial in minimising operational risks and avoiding costly liquidity shortages. Automation and analytics tools can be of huge assistance here: a sophisticated analytics platform can provide real-time visibility into liquidity positions and automation technology can instantly reposition funds in response to transactional demands. A further step financial institutions should take is restructuring their treasury operations. They need to ensure these operations are aligned more closely with instantaneous payment flows so they don't slow things down. Such changes, combined with the steps above, allow banks to move from sluggish legacy processes to active, real-time liquidity management that enables banks to boost operational efficiency, significantly reduce system risk exposure, and respond swiftly to changing market dynamics. Rebuilding for real time To deliver true instant payments, banks must do more than patch legacy systems – they need to re-architect for speed. That starts with moving away from monolithic infrastructures in favour of agile, modular platforms built to natively handle ISO 20022 – the global standard underpinning SEPA IP. ISO 20022 doesn't just improve compatibility; it unlocks rich, structured data that powers better fraud detection, customer insights, and cross-border automation. Banks that are able to harness this data will be well-positioned to launch value-added services and enhance the customer experience across every transaction touchpoint. Cloud computing is another critical enabler. Data indicates 25% of banks are still exploring cloud options in 2025, remaining mainly on-premises. Cloud adoption brings the flexibility and resilience needed to scale in real-time, handle unpredictable payment volumes, and reduce latency. Combined with APIs that streamline communication between internal systems and external channels, cloud deployment lays the foundation for more dynamic, responsive banking. 25% of banks are still exploring cloud options in 2025, remaining mainly on-premises. Cloud adoption brings the flexibility and resilience needed to scale in real-time, handle unpredictable payment volumes, and reduce latency. Combined with APIs that streamline communication between internal systems and external channels, cloud deployment lays the foundation for more dynamic, responsive banking. Some non-EU banks have tried starting with a "thin layer" approach, building ISO 20022-compliant gateways to mediate between legacy core systems and the SEPA IP network. This has had limited success, because SEPA IP is about more than just ISO messaging, it requires instant 24x7 clearing and settlement capability, which legacy systems do not have. Competitive leaders have gone further, taking the SEPA mandate as a challenge to introduce native real-time 24x7 components into their payments infrastructure, accelerating both innovation and compliance. Instant isn't optional SEPA IP is more than a compliance deadline – it's a signal that the rules of banking have changed. Speed, data, and seamless infrastructure are now the baseline. Banks that cling to legacy systems risk falling behind, regardless of their location or timeline. The 2027 deadline for non-EU institutions may seem distant, but in a world where customers expect immediacy, the time to act is now. Nadish Lad is Managing Director and Global Head of Strategic Business at Volante Technologies "Instant payments are the new standard: Can banks keep up?" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Payment Modernisation Is a Priority for 99% of EMEA Banks in the Next Year, Volante Report Reveals
Payment Modernisation Is a Priority for 99% of EMEA Banks in the Next Year, Volante Report Reveals

Business Wire

time15-07-2025

  • Business
  • Business Wire

Payment Modernisation Is a Priority for 99% of EMEA Banks in the Next Year, Volante Report Reveals

LONDON--(BUSINESS WIRE)-- Volante Technologies, the global leader in Payments as a Service (PaaS), has released the fifth edition of its annual flagship research report, The Big Survey 2025: Modernising Payments. The survey of senior-level banking decision makers from 11 countries across EMEA reveals a near unanimous drive for change: 99% of banks plan to implement a new payments solution—replacing one or more systems—within the year, with over half (52%) aiming to do so in the next six months. Volante found that banks are not only keen to modernise, they are prepared to spend big to future-proof their payments infrastructure. Almost half (49%) of banks surveyed say their budget allocations for payments modernisation have increased over the past 12 months—on average, EMEA banks are planning to spend just under $1.5 million ($1.42 million) on payments modernisation within the next year. Other survey highlights include: Cost efficiency and resilience are top motivators. Nearly one-third (29%) of banks say cost efficiency and operational resilience are the external factors driving modernisation the most, followed by changing customer expectations for real-time payments and competitive pressure from fintechs and neobanks. Vendor selection is a key concern. The biggest concern for banks in modernising payments is choosing the right vendors and tech partners (38%)—above factors like cybersecurity and fraud risks and budget challenges. Banks are still encumbered by legacy systems. Over a quarter of banks (27%) rely on legacy technology for their payments services—either relying on core banking to provide payments, or using a combination of internally built and / or vendor solutions that are 5-10+ years old. The survey also revealed that the majority (58%) of EMEA banks use a hybrid approach to cloud adoption for modernising payments, although a quarter are still exploring cloud options but remain mainly on-premises. However, there is some concern among EMEA banks regarding the process of modernisation. Around a third of banks are concerned about the disruption modernisation may cause, and a similar percentage are worried about the internal skills and knowledge needed to manage the transition. The report notes 'the solution to both of these worries is to focus on strategic modernisation: progressing towards modernisation with small, carefully measured steps". It further advises banks that understanding their customers' priorities is important both in setting out their modernisation roadmap and in building a business case for modernisation and ensuring budgets are tactically spent. 'The fifth edition of The Big Survey shows banks recognise that modernising payments is crucial to survival in the evolving payments landscape. It's not only market competition and changing customer expectations that are impressing this urgency upon them: 2025 is a pivotal year for regulatory deadlines regarding legislations, such as SEPA Instant Payments and SWIFT ISO 20022,' said Vijay Oddiraju, Co-founder and Chief Executive Officer. Oddiraju continued, ' The fact that banks are preparing to spend, on average, almost $1.5 million on payments modernisation shows that they understand how important it is to adapt to industry shifts. But the size of such modernisation budgets means banks are, understandably, cautious about their selection of vendors and tech partnerships. For banks, the right partners are ones who will help them modernise their payments while lowering risk, improving ROI, and helping them onboard new clients quickly. PaaS providers who can offer banks such solutions, with technology that is resilient, compliant, and easily extensible, stand to win big as payments enters its next era.' Download a copy of the survey, ' The Big Survey 2025: Modernising Payments ', here. Notes to editors The survey was conducted by Censuswide in May 2025 on behalf of Volante Technologies. All respondents work in banking roles related to payments, transaction banking, corporate banking and wholesale banking and hold director level or more senior positions with responsibility for selecting payment processing systems. Respondents come from 11 different countries: the UK, Portugal, Spain, Saudi Arabia, UAE, Sweden, Norway, Denmark, Belgium, the Netherlands and Luxembourg. Sample sizes varied across countries. About Volante Technologies Volante Technologies is the trusted cloud payments modernisation partner to financial businesses worldwide, giving them the freedom to evolve and innovate at record speed. Real-time native, API enabled, and ISO 20022 fluent, Volante's Payments as a Service and underlying low-code platform process millions of mission-critical transactions and trillions in value daily. Volante's customers include four of the top five global corporate banks, seven of the top ten U.S. banks, and two of the world's largest card networks. Learn more at and

Arion Bank Strengthens Compliance With Volante Technologies' Payments as a Service
Arion Bank Strengthens Compliance With Volante Technologies' Payments as a Service

Yahoo

time15-05-2025

  • Business
  • Yahoo

Arion Bank Strengthens Compliance With Volante Technologies' Payments as a Service

Iceland's leading bank strengthens its modern payments infrastructure and partners with Volante to support long-term innovation and growth LONDON, May 15, 2025--(BUSINESS WIRE)--Volante Technologies, the global leader in Payments as a Service (PaaS), announced a strategic partnership with Iceland's leading financial institution, Arion Bank, to modernise and future-proof the bank's payments infrastructure, solidify its regulatory response, and prepare for an increase in transaction volume as part of its growth plan. Arion Bank is one of Iceland's leading financial institutions and the third-largest bank in the country by assets. It offers a wide range of services in retail, corporate, and investment banking, providing smart and reliable financial solutions to individuals and businesses alike. The bank sought to evolve its current payments hub by adopting a modern, API-driven, and scalable solution designed to support multi-rail processing and seamless integration with the emerging payments ecosystem. By partnering with Volante Technologies, Arion Bank will ensure compliance with the Digital Operational Resilience Act (DORA) and be prepared for the upcoming CBPR+ deadline of November 2025. The new platform will also enable readiness for SEPA Instant Payments (SEPA IP), expected to launch across the region in 2026/27, aligning with the bank's broader strategy for innovation and future-proofing its payments infrastructure. "We needed a partner who could provide both the technology and guidance to help us navigate the complexities of evolving regulatory standards," said Björn Björnsson, CIO at Arion Bank. "Volante is a strong fit for our strategic objectives. As the partnership progresses, Arion Bank will explore additional ways to leverage Volante's innovative technology stack. The modular, component-based design of Volante's PaaS allows Arion Bank to implement and scale new products and services at their own pace, enabling agility to adapt to future market demands. Given Iceland's market size, this presents a significant competitive advantage." "We are delighted to partner with Arion Bank, a leader in Iceland's banking sector," said Deepak Gupta, EVP Product, Engineering & Services at Volante Technologies. "From the beginning, it was evident that Arion Bank understood the value we deliver beyond our cloud payments technology. We will continue to serve the organisation as a trusted partner throughout its modernisation journey, ensuring the team can meet its strategic business goals, including strengthening its compliance response and preserving its ability to adapt to change quickly." To learn more about Volante Technologies Payments as a Service, please visit [ For more information on Volante ISO 20022 Service, please visit [ About Volante Technologies Volante Technologies is the trusted cloud payments modernisation partner to financial businesses worldwide, giving them the freedom to evolve and innovate at record speed. Real-time native, API enabled, and ISO 20022 fluent, Volante's Payments as a Service and underlying low-code platform process millions of mission-critical transactions and trillions in value daily. Volante's customers include four of the top five global corporate banks, seven of the top ten U.S. banks, and two of the world's largest card networks. Learn more at and Arion Bank Arion Bank is a leading Icelandic bank offering universal financial services to companies, institutional investors and individuals. These services include corporate and retail banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients. View source version on Contacts On behalf of Volante Technologies:EMEA Assyria GravesHard NumbersTel: +44 7507 870214VolanteTech@ Americas Julian ByrneanthonyBarnumPublic RelationsTel. +1 (512) 665-9258pr@

Arion Bank Strengthens Compliance With Volante Technologies' Payments as a Service
Arion Bank Strengthens Compliance With Volante Technologies' Payments as a Service

Business Wire

time15-05-2025

  • Business
  • Business Wire

Arion Bank Strengthens Compliance With Volante Technologies' Payments as a Service

LONDON--(BUSINESS WIRE)-- Volante Technologies, the global leader in Payments as a Service (PaaS), announced a strategic partnership with Iceland's leading financial institution, Arion Bank, to modernise and future-proof the bank's payments infrastructure, solidify its regulatory response, and prepare for an increase in transaction volume as part of its growth plan. Arion Bank is one of Iceland's leading financial institutions and the third-largest bank in the country by assets. It offers a wide range of services in retail, corporate, and investment banking, providing smart and reliable financial solutions to individuals and businesses alike. The bank sought to evolve its current payments hub by adopting a modern, API-driven, and scalable solution designed to support multi-rail processing and seamless integration with the emerging payments ecosystem. By partnering with Volante Technologies, Arion Bank will ensure compliance with the Digital Operational Resilience Act (DORA) and be prepared for the upcoming CBPR+ deadline of November 2025. The new platform will also enable readiness for SEPA Instant Payments (SEPA IP), expected to launch across the region in 2026/27, aligning with the bank's broader strategy for innovation and future-proofing its payments infrastructure. "We needed a partner who could provide both the technology and guidance to help us navigate the complexities of evolving regulatory standards,' said Björn Björnsson, CIO at Arion Bank. 'Volante is a strong fit for our strategic objectives. As the partnership progresses, Arion Bank will explore additional ways to leverage Volante's innovative technology stack. The modular, component-based design of Volante's PaaS allows Arion Bank to implement and scale new products and services at their own pace, enabling agility to adapt to future market demands. Given Iceland's market size, this presents a significant competitive advantage.' 'We are delighted to partner with Arion Bank, a leader in Iceland's banking sector,' said Deepak Gupta, EVP Product, Engineering & Services at Volante Technologies. 'From the beginning, it was evident that Arion Bank understood the value we deliver beyond our cloud payments technology. We will continue to serve the organisation as a trusted partner throughout its modernisation journey, ensuring the team can meet its strategic business goals, including strengthening its compliance response and preserving its ability to adapt to change quickly.' To learn more about Volante Technologies Payments as a Service, please visit [ ]. For more information on Volante ISO 20022 Service, please visit [ ]. About Volante Technologies Volante Technologies is the trusted cloud payments modernisation partner to financial businesses worldwide, giving them the freedom to evolve and innovate at record speed. Real-time native, API enabled, and ISO 20022 fluent, Volante's Payments as a Service and underlying low-code platform process millions of mission-critical transactions and trillions in value daily. Volante's customers include four of the top five global corporate banks, seven of the top ten U.S. banks, and two of the world's largest card networks. Learn more at and Arion Bank Arion Bank is a leading Icelandic bank offering universal financial services to companies, institutional investors and individuals. These services include corporate and retail banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients.

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