6 reasons to reform
In the World Bank’s ‘Outcomes of the Global Payments Systems Survey 2010', 6 key factors were identified as having triggered the reform of payment systems worldwide. The most important factors were the need to improve efficiency, responding to technological innovation and a need to reduce systemic risk.
Findings from Lipis and Lipis research on market potential for real-time payments in 2013 found that a number of central banks, governments and payments associations are currently concerned with the development of financial inclusion initiatives, modernisation of payment systems, decreasing the use of cash for payments and promoting competition within financial services.
For automated clearing houses, the most important factors driving change are: the desire to increase relevance within the payments chain through the delivery of new technologies to grow their business, to circumvent the threat from card schemes and non-banks who are seeking to move their products into traditional and new payment domains, to avoid commoditisation occurring within traditional clearing and settlement services.