Accenture predicted up to 15 per cent of banks’ global payments revenue, or $280 billion, is likely to be captured by new competitors pushing digital alternatives over the next six years.
Research by the professional services company showed the banking industry is expected to face pressure from companies offering a number of different payment options. As an example, it predicted 8 per cent of bank’s revenue faced a risk from providers offering free payment services.
Accenture added invisible payments, those completed using a virtual wallet on a mobile app or device, are likely to put 3.9 per cent of bank revenues at risk, while instant payments are projected to present a danger to a further 2.7 per cent.
“We face an inevitable world of instant, invisible and free payments, which spells trouble for banks that don’t want to be relegated to the plumbing of payments’ digital boom”, said Gareth Wilson, MD of Accenture’s global payments unit.
Alan McIntyre, senior MD of banking, added banks will need to develop new digital business models at scale, with faster payments the new norm, and focus on delivering secure, convenient and frictionless customer experiences.
The company surveyed 240 payments executives at banks across 22 countries.Subscribe to our daily newsletter Back