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Payments Strategy
Payments Strategy takes an integrated view of the products,
access devices, delivery channels, and customer segments that
enable financial transactions to and from customer accounts.
Payments are increasingly viewed and managed by progressive
banks as a "System of Systems“: related and interdependent
products, services, and functions across the enterprise’s
organizational silos. These systems make up an increasing portion
of most banks revenue growth and margins. First Annapolis Consulting
is at the forefront of assisting financial institutions to develop
and implement actionable, integrated payment strategies that
optimize the performance of these important customer relationships
and profit streams.
Typical Assignments
Payment strategy development typically involves five key areas:
Profitability: Understanding the volumes,
growth trends, revenues, and costs associated with various payment
forms, and how these factors will affect overall bank payments
profitability. First Annapolis frequently assists banks in defining
and measuring their payments businesses, and in benchmarking
their performance against peer institutions. We also help develop
the reporting systems to proactively manage payments.
Interrelationships: The co-dependencies of
certain segments, channels, and products within the bank (e.g.,
corporate initiated ACH transactions vs. ACH debits applied
against consumer DDAs.). We have helped banks develop sophisticated
financial models of payments profitability that consider these
interrelationships in forecasting payments business volumes
and margins.
Externalities: The influence of third party
networks, vendors, competitors, and regulators on payments businesses.
We assist banks in understanding the implications of external
events on their payments businesses, and in developing strategies
to best position the bank competitively.
Investment: Deployment of resources for product
and/or channel development on a proprietary or shared basis.
We advise clients on new product (e.g., prepaid or RFID), channel
(e.g.., online), or infrastructure (e.g., Check 21 capabilities)
investments.
Delivery and Support: Infrastructure and servicing
requirements of payments businesses. First Annapolis advises
clients in the various servicing requirements of payments businesses.
These assignments include evaluating the strategic use of third
party vendors, processors, joint ventures, and partnerships
to leverage the bank’s capabilities, as well as functional
assessments to determine the optimal mix of channels for service
delivery. |
