Financial services and capital markets are undergoing a profound transformation across the world. Although technological disruptions are creating greater opportunities for banks and financial institutions, the emerging challenges such as growing credit risks, higher customer attrition, etc., continue to be bothersome.
To highlight how the financial services sector in the Middle East can gear up to ward off future crises and contribute toward building a robust and resilient payment landscape, an event was organised by IDC Banking and Finance Congress at Hilton Al Habtoor City, Dubai on June 28, 2022.
Mindgate participated in the event as a Gold Sponsor. Also present at the event was a selected group of business leaders from the Banking & Finance industry. Participants presented their views on the best practices for a brighter digital future and gained insights from IDC’s analysts and inspiring speakers from across the GCC region (UAE, KSA, Qatar, Oman, Bahrain, and Kuwait).
Role of Real-Time Payments and Request to Pay in the Middle East
If we go by the latest industry trends, it’s not hard to notice how real-time payments are catching up across the globe. Middle Eastern countries are no exceptions to this trend. They are advancing their new real-time payment solutions, and some are even thinking beyond their domestic markets while planning for the future. Many are also focusing on streamlining cross-border payments within the region.
Built on a state-of-the-art technology framework RTP Solutions are gaining momentum as they provide ease of instant transfer with the use of Virtual Payments Address (VPA), QR codes, or any other qualified account identifiers– coupled with solid end-to-end security and data protection.
The new-age instant payment system offers a multitude of benefits for financial institutions (FIs), merchants, and consumers. Inducing enhanced visibility into payments, facilitating better cash management, and empowering businesses with improved liquidity, the instant payment solutions can prove to be game-changers for an economy. This is why the interest in real-time payments rails has grown stronger in the Middle East, where various faster payments initiatives are going live or are nearing their debuts.
Talking of developments in real-time payments, the Request to Pay application cannot be missed. It has emerged as a powerful real-time payments channel that is further bolstering the existing payments landscape. Rollouts are occurring across the globe and the Middle East too is gearing up for the same. A number of financial institutions are deploying the system to provide value-added services to customers.
Request to pay gives payers the flexibility to choose how and when to make their payments or whether to deny payment requests for any reason. This makes it an attractive payment option for today’s consumers who seek convenience and speed. A highly secure application, it also helps banks in curtailing frauds and subsequently reducing costs of managing and writing off risk.
Additionally, the lending institutions gain from faster and safer cross-border and domestic payments. This speeds up reconciliation efforts and saves time and resources spent on tracking down payers with outstanding debts.
Key Takeaways
It’s just the right time for financial institutions in the Middle East and other countries to start working on modernising their payments infrastructure. The banks today need to capitalise on the potential of real-time payment systems and leverage their commercial potential.
For successful implementation of real-time payments, the financial institutions must think beyond just return on investment. They need to come up with a concept that integrates real-time payments as part of their comprehensive digitalisation strategy and covers technical, operational, and business aspects.
Tying up with leading solution providers such as Mindgate can be a boon for banks as it can help them have a future payments strategy that complies with next-generation requirements.
A market leader in digital payment solutions, Mindgate has come up with solutions that are optimised for scalability. These facilitate the launching of various value-added services for all participants across channels with a quick turnaround time and reduced TCO. Equipped with API-based interface and micro services-enabled architecture for scalability and flexibility, our cloud-native solution can power P2P, P2M, and M2P payments and collections.