If you want to see technology move fast, look no further than the payments space. APIs, personalization, BNPL, cryptocurrencies, and even the metaverse are all part of the mix, or will be soon. Given the pace of change is so staggering, how are traditional banks going to respond to ensure their future?
In the latest report from Rise, created by Barclays, I consider one solution that's being road tested here at the Alloy Labs Alliance and in other organizations: developing shared utilities through deep collaboration. Done right, collaboration between institutions can be powerful, as the history of finance illustrates. In the 1970s, responding to the out-of-date Telex systems of the time, the SWIFT messaging network was developed by a massive group of global banks (over 200 from 15 countries) working together to solve the problem. Also in that decade, a consortium of banks developed what would become Visa when credit cards proved popular but internal accounting systems in competing banks couldn’t cope with the demand.
Fast forward to the 2020s, and banks are once again embracing collaboration. But this time, instead of fixing yesterday’s technology, they’re banding together to leverage today’s opportunities. In the new report, you can read how a group of community banks is minting a USDF stablecoin to reap the benefits of faster transactions, efficient onboarding and access to more data. You can also learn how Alloy Labs banks are expanding their customers’ payment choices by building an open hub for sending and receive payments of any kind, on any platform.
The pace of change and appetite for convenience is driving many exciting developments in payments technology. The Rise Insights report examines other areas where innovative fintechs have stepped up, and features contributions from the Rise ecosystem and from experts at Barclays. Download the report