BNY Mellon Examines the Key Technologies and Initiatives Shaping the Future of Payments

Rhea-AI Summary

BNY Mellon has released two research papers on the future of payments and digital currencies, highlighting innovations that will enhance domestic and cross-border transactions. The papers emphasize the need for interoperability between traditional and new solutions to facilitate smoother transactions. Key findings include the potential for instantaneous, transparent money movement and how digital currencies could reshape payment models, impacting liquidity and risk management. BNY Mellon aims to leverage various technologies, including AI and blockchain, to optimize client experiences in financial transactions.

Positive

• Research papers highlight innovations in payments and digital currencies.
• Potential for faster, frictionless domestic and cross-border transactions.
• Emphasis on interoperability between traditional and new payment solutions.
• Expansion of fintech as a catalyst for innovation in payments.
• BNY Mellon leveraging various technologies to enhance client experience.

Negative

• None.

NEW YORK, Feb. 4, 2021 /PRNewswire/ -- As BNY Mellon continues to be at the leading edge of helping clients and partners navigate innovations in payments and the future of digital currencies, the Bank today announced the release of two research papers focused on the range of payment channels and capabilities that are being made available, and what their impact will mean for clients in the future. The reports highlight that innovations in payments and digital currencies will ultimately allow banks to make domestic and cross-border transactions faster, more frictionless, efficient, transparent and cost-effective; and also discuss how firms need to achieve interoperability among both old and new solutions to ensure streamlined transactions.

Multiple Paths, One Destination, examines how industry initiatives and new technologies will ultimately enable money to be moved instantaneously, 24/7/365 and with full transparency. A Spotlight on Digital Currencies focuses on how digital currencies could change the payment model. It explores how the coexistence of digital tokens and fiat money could meet a broader array of client needs; and change how the industry looks at settlement speed, liquidity, reconciliation, risk, and potentially impact the role of correspondent banking and intermediaries. 

The first paper notes that continued innovations will collectively facilitate a new era of payments, with different rails, channels and solutions delivering enhanced capabilities and supporting a variety of client needs. It also notes that the expanding fintech market is acting as a catalyst for innovation by bringing industry players together through various collaborative approaches. Banks are also playing an important role—launching innovation centers to facilitate collaboration with fintechs and clients to optimize the collective offerings.

"Each new technology is acting as an important piece of the future state of payments," explains Mike Bellacosa, Global Head of Payments and Transaction Services, at BNY Mellon. "So many exciting developments are occurring in the industry, but no single solution is currently delivering optimized payments."

"A key element of BNY Mellon's digital strategy is to offer frictionless access to these innovative solutions through our open-architecture API enabled platforms", says Saket Sharma Chief Information and Digital Officer for BNY Mellon's Treasury Services. "Each innovation – whether its SWIFT gpi, real-time payments, blockchain, or artificial intelligence – brings its own value and has a role to play in an enhanced client experience."

To learn more from one of our experts, or to download copies of the reports, visit: www.bnymellon.com.

ABOUT BNY MELLON
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of Dec. 31, 2020, BNY Mellon had $41.1 trillion in assets under custody and/or administration, and $2.2 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Contact:       
Paul Patella
BNY Mellon
paul.patella@bnymellon.com
+1 212 635 1378 

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SOURCE BNY Mellon

FAQ

What are the key findings of BNY Mellon's research on payments and digital currencies?

BNY Mellon's research highlights innovations that will enhance payment capabilities, emphasizing the importance of interoperability between traditional and new solutions for faster transactions.

How does BNY Mellon view the impact of fintech on payments?

BNY Mellon sees fintech expansion as a catalyst for innovation, facilitating collaboration to optimize payment solutions.

What technologies does BNY Mellon plan to use to improve payment experiences?

BNY Mellon plans to use technologies such as blockchain, AI, and open-architecture APIs to enhance client experiences in payments.

How do digital currencies potentially affect the banking industry?

Digital currencies may change the settlement speed, liquidity management, and the role of intermediaries in the banking industry.

What is BNY Mellon's strategy for digital payments?

BNY Mellon's strategy focuses on offering frictionless access to innovative payment solutions through its platforms.