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What Does It Take To Be A Leading Player In Payments Integration?

Last Thursday, Aite Group, Capgemini and Informatica discussed why data integration was critical to the success of payment hubs. One of the questions from the audience was: who were the leading players? Capgemini responded that there are different segments of players– system integrators, payments application vendors, payments integration vendors. And each segment had a role in the success of a payments hub. But to say who is leading, you need to first look at what it takes to be a leader. Let’s look at what it takes for payments integration:

1. Data integration, and data transformation in particular is critical to the success of payments hubs. Without it, there is no interoperability or communication between and among systems. To enable all of the features and functionalities of a financial messaging infrastructure, considerable system interfaces are required. The cost of creating and maintaining these interfaces contributes to why “0% of banks are happy with their current payment structure and systems as they are right now” (source : Aite Group September 2010). Aite Group shared how this transformation was needed across payments processing, front-end interface to channels, and all the systems needed to connect to SWIFT, other banks, or regional clearing.

2. Strong partnerships with:

• standard organizations like SWIFT to support the annual standard changes early and influence new standard changes
• system integrators and other vendors with deep implementation experience in payments hubs and financial messaging to develop joint accelerators and best practices
• customers to build out purpose built solutions addressing the specific challenges of large scale payment (and financial transaction) processing

For example, in partnering with standards organizations like SWIFT, Informatica certifies the pre-built transformations to ensure complete accuracy and validity of the messages. This not only reduces costs of development but also maintenance costs of keeping up with standard changes year over year. Informatica continues to grow its expertise in data transformation from its acquisition of the leader in data transformation space years ago by adding pre-built transformations for the major standards (including SEPA, SWIFT, NACHA). In addition, Informatica enables the rapid support of proprietary, local payment /financial, and new standards. On average, Informatica reduces the costs of development and maintenance by 50% or more.

In partnering with system integrators and other vendors, Informatica has developed an ecosystem of Informatica- ready implementation experts. These experts take the jointly developed accelerators to ensure that payments projects are completed on time. Capgemini spoke about leveraging reference architectures as an example of an accelerator. This reference architecture would include: common definitions and interfaces, design principles, integration interfaces, ‘islands of stability’ to phase the project.

Informatica has been chosen as the next generation payment solution for some of the largest banks. In partnering with customers, Informatica has built out solutions targeted to operational users and that scale with volume and latency. This includes large files processing (e.g. 1 GB), high volume (billions of payment transactions per day) and low latency (transformation in seconds). Informatica targets operational users by enabling configuration and management by non-technical personnel through easy to user Web user interfaces.

For more information view the webinar with Aite Group, Capgemini and Informatica.

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One Response to What Does It Take To Be A Leading Player In Payments Integration?

  1. Bart Cant says:

    My experience from helping a few large Global Financial institution on the project study for large payment programs is that these implementations costs can vary widely based on the selected integration approach . Sr bank executives are very often surprised by the initial projected implementation costs for a payment system replacement. Accelerators for integration can help drive down these costs to a level that the business case makes sense and the projects can move forward.

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