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Top Trends in U.S. Wholesale Payments: Much More Than Processing Efficiency

Top Trends in U.S. Wholesale Payments: Much More Than Processing Efficiency

U.S. financial institutions risk being relegated to a commodity status of clearing and settling payments. Financial institutions can benefit from the foundation that payments provide if they build strong client relationships and develop new services.
By Eva Weber

Boston, MA, November 13, 2006 – Aite Group is issuing a new report, Top Trends in Wholesale Payments: Much More Than Processing Efficiency. This report identifies key trends in the activity of businesses paying one another for goods and services. It looks at payments challenges and opportunities faced by businesses, financial institutions and vendors. As listed in the diagram below, the trends described in this report fall under three major categories: More of the Same, In Transition and the Big Leap.
 

"Financial institutions spend millions annually to support the various payment methods in use. Each of the largest U.S. financial institutions spend $300 million or more per year on payments processing," notes Nancy Atkinson, a senior analyst with Aite Group and co-author of the report. "Greater proportions of that spend are being directed to create and leverage interfaces to clients for a competitive advantage."

"The stakes are high as institutions try to comply with regulations that impact B2B payments," says Eva Weber, an Aite Group analyst and co-author of the report. "It is difficult to predict exactly where regulators might turn next, but it is clear that they value tools that allow institutions to automate processes, that report on them regularly, and also update them quickly with new rules and guidance."

The following companies are mentioned in the report: ACI (P&H Solutions), American Express, Archive Systems, Bottomline Technologies, Electronic Payments Network, Federal Reserve, Fundtech, MasterCard, Mellon Financial, National Automated Clearing House Association (NACHA), Oracle, SAP, S1, SourceNet Solutions (A Mellon Financial CompanySM), The Clearing House, Union Bank of California, and Visa.

This 47-page Impact Report contains 14 figures and 14 tables. Clients of Aite Group's Wholesale Banking Service can download the report by clicking the icon to the right.