<img alt="" src="https://secure.perk0mean.com/172683.png" style="display:none;">
arowExplore our blog library

The future of financial collaboration


Talk of "ecosystems" was once confined to geography or biology textbooks, but now the term is common within the financial services sector. It describes the network of organisations that compete and co-operate to deliver specific products or services.

Indeed, the financial services industry has a long history of collaboration. The correspondent banking network facilitates millions of international transfers daily. Similarly, numerous parties are involved behind the scenes each time a consumer pays with a plastic card, mobile phone or a cheque.


The future of financial services is set to become even more collaborative. Part of the drive is regulatory. The revised payment services directive in Europe (PSD2) came into effect earlier this month. European banks must allow third parties, such as retailers and rivals, to access the account data of customers who authorise it.

“For customers, this means potentially more choice and better deals. For banks and other providers, it means a more dynamic, fluid environment, partly driven by APIs,” says Jonathan Bennett, CCO, CashFlows.

Commentators are predicting the growth of open banking and API ecosystems. These application programming interfaces are the software, which allows the exchange of data between systems and organisations. They are predicting the disintermediation of banks and traditional payments providers by more nimble fintech and big tech competitors.

When opportunities and threats exist in the same future, how do organisations position themselves for success post-PSD2?

Smart outsourcing

Managed services and as-a-service propositions, such as back-end as a service or compliance as a service are becoming increasingly popular. They are certainly quicker and more convenient than building or modifying one's own systems or joining a card scheme directly.

Choose the right partner, and it may also offer access to customers across Europe without the complexity, advises Bennett. Without the form filling, registration fees, certifications and collateral requirements, outsourcing is quick and convenient alternative to joining an international card network directly.

CashFlows is an experienced and reliable outsourcing partner. Since 2010 we have been actively involved in sponsoring clients through our direct membership of all the major international card schemes: American Express, Discover, JCB, Mastercard, UnionPay and Visa.

We currently work with the largest independent ATM deployers across Europe, and we are the principal ATM sponsor for the UK’s leading transaction processor. We’re proud to have settled £1.7 billion from 35,000 ATMs in 2016.

Our dedicated staff have the knowledge and experience to guide partners through the often-complex world of outsourcing and sponsorship. Moreover, our technology stack is modern and purpose-built so we can make good on our promises from day one.

Find out more

For more information on how we can help your payment processes contact sales@cashflows.com

Original article can be found here: https://business-reporter.co.uk/2018/01/29/future-financial-collaboration/