Bank consolidations these days are producing fewer, bigger banks, resulting in increasingly homogeneous product and service offerings. The common wisdom among big bank CEOs—despite increasing calls to reduce the size of SIFI (Systemically Important Financial Institutions)—continues to be the pursuit of economies of scale as their mantra for success. One result of the “Bigger-Is-Better” strategy is the diminishing attention paid to other forms of differentiation such as innovation.
In contrast, non-SIFI banks are finding it extremely difficult to increase market share and grow their transactions businesses without some kind of differentiation. Simultaneously, corporates are asking for the moon. Someone needs to save the day and bring needed innovation to the banking domain. B2B payments, especially cross-border B2B payments, are ripe for innovation in this environment.
Corporate Treasurers consistently ask that payments be reliable, cost-effective, and easy to self-serve. One innovative way to meet their requirements is embed all the relevant transaction data in the payments information package. Such a simple approach. Why aren’t more global payments vendors picking it up?