Unifying your business with Payment Factories

Today, the largest banking groups in the world result from consolidation, merger or acquisition over the years of several banks across different markets.

The consolidation of these entities raises new challenges they need to address. Consolidation means merging of existing structures – therefore dealing with existing systems, technologies infrastructure and business operations. Technology is a key challenge because to keep its business operations going, the consolidated group needs to integrate and interact with an array of interfaces, multiple data formats, multiple banking systems, etc. In addition, when businesses are running on mainframe legacy platforms and technologies, it is not unusual to see old and unoptimized implemented systems that have been continuously and heavily modified over the past years, stifling innovation.

Whether it is a merge of several structures from the same country, or from different countries, the challenge remains the same and is significant: how to deal with each local characteristics and preferences? It is one thing to define a generic framework, and quite another to implement and apply to all. Each subsidiary or local branch has its own unique features, that are key to that specific market – which does not mean that they are essential to another market.  

In an industry that values efficiency like no other, delivering innovative payment services and seamless user experiences is a must for every player in the market. Thus, all the above issues must be addressed without impacting the existing customers, cardmembers, corporates, or merchants – and still allow innovation to stay relevant in this demanding ecosystem.

To overcome those challenges, large and diverse organisations can’t remain forever as they are: they need to go down the path of change. To do so, they can move from their legacy and fragmented systems to a single technology platform, centralizing all their diverse systems as a payment factory. Payment factories are processing centres specialized on the payment functions (meaning all the issuing, acquiring, switching, authorization server, etc. activities are consolidated in one single platform). Implementing a single technology platform for an organization that operates in multiple countries allows not only cost and process optimization (central team to handle payment processing, with a 360° visibility on the entirety of the organization), but also allows the rationalization of bank IT systems.

HPS has an acute and extensive expertise in legacy systems replacement to enable its customers to gradually become Payment Factories. With PowerCARD single technology platform, HPS provides its customers with a best-of-breed approach and helps them transition from fragmented and decentralized systems, to a single open payment platform. PowerCARD covers the whole payment value chain. The platform has a modular architecture: clients can build the solution they need and grow it over time to replace legacy systems. Modularity makes it a future proof system. PowerCARD is flexible enough to provide each subsidiary, each branch, each department, etc. a high level of parametrization: all implementation strategies are possible.

To know more about how PowerCARD helped large banking groups migrate all their fragmented systems to a single technology platform, please contact sales@hps-worldwide.com