Blockchain: BNY Mellon Advises Banks to Prepare for New Payment Trends

In BNY Mellon’s latest report titled “Innovation in Payments: The Future is FinTech,” the group highlights major changes that are taking place in the global payments landscape.

In the coming years, banks will take on new competition from over 4,000 startups, a new breed of network solution providers and blockchain-powered services. Financial institutions can remain at ease while they assess their current positions, as the new entries in the field face hurdles in the form of regulations and compliance.

“While the banking industry is traditionally conservative about change, any hesitation or ambivalence here could be costly,” warned Ian Stewart, CEO, treasury services business, BNY Mellon.

“In order to position themselves at the centre of the payments industry of tomorrow, banks must act today to understand, interact with, and cherry-pick from the full smorgasbord of fintech developments.”

The report shines light on a pivotal strategy that some banks are taking to ensure they don’t get left behind. Some establishments are partnering up with small companies to boost their products and services. For banks that are slow to act on the latest financial trends, BNY Mellon recommends crossing into non-related sectors, such as mobile or social network operators.

“BNY Mellon is immersed in the fintech sector,” said Stewart. “We are focusing on and investing a great deal of time in exploring the opportunities it has to offer the global payments arena in areas such as the potential to reengineer payments, including blockchain and big data technology. We are also working closely with fintech firms to explore the use of new technology capabilities.”

Specifically, the study mentioned the following tech brands as potential threats to banks: Amazon, Google and Facebook. Such businesses are offering powerful, low cost alternatives to traditional banking services.