Business Wire

Research Reveals Software Development Limitations Cost Banks 5% a Year in Lost Payment Revenues

Share

Independent research conducted by Celent on behalf of Icon Solutions estimates that software developer capacity constraints have impacted banks’ payment revenues by 5% over the past two years. This is leading to increasing interest in ‘low code’ tools and platforms to accelerate the delivery of revenue-generating services, while maintaining control of the development process.

Launched today at Sibos, the survey of Tier 1 banks in North America and Europe found that the account-based payments processing model remains under significant and sustained pressure. Despite a high interest rate environment, 61% reported that margins are becoming more difficult to maintain amid evolving customer expectations, increasing regulatory demands and the emergence of new competitors.

These margin challenges are compounded by capacity limitations within the technology function. Many large banks prioritise in-house builds over buying vendor packages for payments processing software to maintain control and competitive differentiation. The ability to deliver change, however, is inhibited and improvement projects are frequently cancelled, de-scoped, or fail entirely to make it onto roadmaps. On average, banks reported missing around four opportunities to launch revenue-generating enhancements to their payment processing offering over the past two years, with the opportunity cost estimated to be around 5% of annual payment revenues.

To overcome this challenge, banks are increasingly exploring the use of low code to realise greater efficiencies, agility and collaboration. Low code involves the use of standardised, pre-built blocks that can be used to rapidly create new code or make changes to existing software through a visual, ‘drag and drop’ interface. This enables software development without manual coding, increasing developer productivity and enabling non-technical product specialists within the bank to contribute to the development process.

While low code has traditionally been restricted to enterprise applications or workflow improvement projects, the research revealed that several large banks are now extending its use into payment processing. 36% of banks reported that they are already using low code to support software development to some extent in non-card payments, with the same proportion actively experimenting or exploring their options. Overall, 90% of banks are planning on implementing low code for non-card payments in the immediate future.

“Low code is not a new concept but is emerging as a very important topic in the payment industry,” comments Kieran Hines, Principal Analyst at Celent. “Many large banks face the same challenges, with the need to deliver payments modernisation and product enhancements stymied by capacity limitations. Several early adopters are now using low code in some areas within non-card payments, and the number of proof points and use cases is building. Underpinning this is a growing consensus that the benefits of low code are both real and realisable.”

Toine van Beusekom, Strategy Director at Icon, adds: “Low code presents a powerful opportunity to reimagine the payments processing value chain, moving payments from cost to profit centre while maintaining control. There is no single approach to leveraging low code to deliver enhanced, revenue-generating services, yet all banks will be required to think differently and assess the full spectrum – from buying a package to a full in-house build – to ensure a unified focus on the customer need. This starts with a clear strategy and an understanding of the underlying architectural requirements needed to realise its transformative potential.”

To download the full report, ‘Using Low Code to Accelerate Payments Innovation:Unlocking Greater Agility and Flexibility’, click here.

Icon will be exploring payments processing strategies in more depth at Sibos. Find the team at stand DISM10 or click here to book a meeting.

-ENDS-

About Icon Solutions

Icon Solutions is a leading specialist provider of services and technology solutions that are simplifying banking transformation.

Icon is the past, present and future of payments. With a proven record delivering mission-critical solutions for global institutions, it is driving the next-generation of banking and payments architecture. Icon combines industry-leading domain experts, services, accelerator assets and technology that empower customers to solve problems, fight complexity and embrace change.

Icon has applied its payments, technical and integration expertise to create IPF: a low-code, cloud-native, open-source technology platform to accelerate payments transformation.

Icon’s clients include leading global banks such as BNP Paribas, HSBC and Lloyds Banking Group.

iconsolutions.com | Twitter/X | LinkedIn | YouTube

Click here to read our privacy policy

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

For further Icon Solutions media information, please contact Ellie Fingleton at iseepr ellie.f@iseepr.co.uk

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Higround and The Pokémon Company International Invite Fans to Explore Fan-Favorite Pokémon in New Collection4.12.2023 22:31:00 CET | Press release

In a new and special collaboration, Higround, a powerhouse within the lifestyle and gaming spheres, is teaming up with The Pokémon Company International to create an exciting collection that seamlessly blends the worlds of competitive gaming, and the beloved Pokémon franchise. This unique partnership introduces a carefully curated collection of gaming peripherals inspired by fan-favorite Pokémon. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231204512387/en/ Pokémon + Higround Blastoise Summit 65 Keyboard (Photo: Business Wire) Higround introduces its line of Pokémon-themed keyboards and additional accoutrement, offering fans a tactile way to connect with their favorite franchise. In this unique collection, the Base 65 and Summit 65 Keyboards take center stage. The Base 65 models, for the everyday adventurer, feature designs like the iconic Poké Ball and fan-favorite Pokémon, including Venusaur, Charizard, Blastoise, and Me

Gurobi 11.0 Delivers Global Nonlinear Solving, Speed Enhancements, Dynamic Distributed Tuning, and Enterprise Features4.12.2023 19:48:00 CET | Press release

Gurobi Optimization, LLC, the leader in decision intelligence technology, today announced the release of Gurobi Optimizer 11.0. This advancement marks a significant step forward in solving real-world nonlinear problems with Gurobi. With Gurobi 11.0, users can quickly identify precise, globally optimal solutions to complex nonlinear problems—from domains such as chemical engineering, electricity flow, and price optimization. Additionally, this new version delivers a key enhancement to Gurobi’s popular tuning tool, enabling teams to share resources across multiple users and jobs when tuning. As with every major Gurobi release, users will experience a boost to Gurobi’s industry-leading solver speed. Compared to Gurobi 10.0, version 11.0 delivers the following performance improvements: Algorithm Speed-Up: Overall (>1 sec) Speed-Up: On Hard Models (>100sec) MILP 8.6% 12.4% MIQP 12.8% 22.8% Convex MIQCP 9.2% 18.2% Nonconvex MIQCP 133.4% (2.3x) 480.2% (5.8x) “For nonconvex problems, we achiev

Fitch Group Completes Acquisition of Bixby4.12.2023 19:46:00 CET | Press release

Fitch Group, a global leader in financial information services owned by Hearst, today announced that it has completed the acquisition of all the remaining stock it does not own of Bixby Research and Analytics (“Bixby”), a leading provider of credit information on private syndicated loan issuers. Earlier this year Fitch Ventures, the equity investment arm of Fitch Group, led Bixby’s Series A round. Bixby, founded by Brian Conroy, will become a wholly-owned subsidiary of Fitch Solutions and will be managed by CreditSights. Bixby will be incorporated into CreditSights’ leveraged finance product suite, which includes Covenant Review’s legal analysis, LevFin Insights’ news and data, and CreditSights’ fundamental research. Ted Niedermayer, President of Fitch Solutions, said: “The acquisition of Bixby is a natural next step as we continue to prioritize our leveraged finance offerings. Bixby’s data provides complementary insights to CreditSights, which bolsters our loan offering and also allow

SoftServe Named as a Challenger in 2023 Gartner Magic Quadrant for Custom Software Development Services, Worldwide4.12.2023 18:31:00 CET | Press release

SoftServe, a premier IT consulting and digital services provider, today announced it has been named by Gartner® as a Challenger in the 2023 Magic Quadrant™ for Custom Software Development Services, Worldwide. SoftServe was recognized for its ability to execute and completeness of vision. “SoftServe is recognized throughout the market as a preferred partner for some of the world’s leading technology providers and enterprises,” said Alex Chubay, SoftServe’s CTO. “Our approach involves a holistic perspective encompassing business acumen, user experience, cloud and data engineering, along with cutting-edge technologies – such as Generative AI – that enable our clients to build award-winning digital products and transform their businesses.” Magic Quadrant reports are a culmination of rigorous, fact-based research in specific markets, providing a wide-angle view of the relative positions of the providers in markets where growth is high and provider differentiation is distinct. For more than

Limited Libations, Innovative Blending, Escapism Elixirs and More are Shaping the Way That Consumers Drink in 2024, Based on the Bacardi Cocktail Trends Report4.12.2023 16:40:00 CET | Press release

Bacardi Limited, the world’s largest privately held international spirits company, releases its fifth annual Bacardi Cocktail Trends Report, anticipating the key trends that will redefine cocktail culture and the spirits business in 2024. The report, created in collaboration with strategic foresight consultancy, The Future Laboratory (TFL), draws on insights from Bacardi-led and external research, interviews with bartenders and insights from The Future Laboratory to share the themes that are transforming flavor preferences, drink formats, and cocktail experiences in the coming year. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231202332985/en/ Find out what's in store for 2024 with the Bacardi Cocktail Trends Report. (Graphic: Business Wire) “As 2024 arrives, people are looking to settle into the unsettled – welcoming tastes of optimism into our reality. In this landscape, people are reshaping cocktail culture, infusing it