Broadridge Financial Solutions has partnered with Hamburg, Germany-based payments consultancy and supplier PPI in order to launch a joint Payments-as-a-Service (PaaS) initiative to help alleviate payments processing pains, according to a press release.
Dr. Thorsten Volkel, CEO of PPI, said the (PaaS) idea would add flexibility to whatever businesses need to accomplish.
“Our payments platform combines all payment types into a hybrid solution, allowing us to leverage the economies of scale for commodity payment types while still being able to preserve the individuality of banks’ core offerings in international payments,” he said, according to the release.
Some of the changes that institutions need to work against include the implementation of PSD2, SEPA ISO migration, SWIFT ISO20022 migration and more, while also responding to national payments infrastructure changes and the emergence of new protocols, the release stated.
Banks have to look at using the latest technology over the old styles of payments infrastructure and operations, which is where the Broadridge and PPI collaboration comes in. The two institutions will help banks realize a shared-service approach, which will boost core payments technology and operations that may have been out of reach previously, according to the release.
Andreas Gunther, managing director of Data Control Solutions for Broadridge in Germany said in the release that many banks and financial institutions are “weighed down by legacy systems supported by a diminishing technology resource pool.”
He said the banks need to “dramatically reduce their cost/income ratios, all while providing high-quality service for their customers and responding to the velocity of change,” according to the release.
“Our collaboration with PPI AG creates a timely answer to this with Payments-as-a-Service, providing a specialized payments solution that can help banks meet their current needs and challenges and get ready for what’s next,” he said in the release.
Payments modernization, PYMNTS reported, often comes down to standardization, making it so that one solid approach can be used for any payment, uniting stakeholders from far apart in the world and connecting cross-border payments with digital commerce.