Why Haven't More Banks Created a Payment Service Hub?
Director, Channel Solutions
Banking and Credit Services
Payment Service Hubs (PSH) have been around for many years now and have proven their value to banking users. What is a Payment Service Hub? It’s a centralized system that processes all types of payments (small and large value) that come from every payment origination and receiving channel. The value of a PSH is in the standardization of redundant processing functions across all payment types, such as processes for fraud prevention, anti-money laundering, disputes, and account and payment verification.
By using a PSH to standardize all payment processing, reduce inefficiencies in payment processing and provide more robust payment information, banks can reduce costs, generate more value-added revenue and improve risk and liquidity management.
The chart below from Novantas LLC touches on the primary benefits for users of a PSH.
Reducing the complexity of payment processing and providing a consistent customer experience across all payment types offer a great deal of business rationale for implementing a PSH. In these days of driving cost reduction in all areas of banks, Payment Service Hubs provide significant opportunity for streamlining both IT and operational processes.
What are you waiting on to convince your bank that the time is right and the business value is confirmed to implement a Payment Service Hub?