Empowering Banks in the Era of Open Banking Payments
The financial world is undergoing a major breakthrough, enabled by the evolution of Open Banking Instant Payments. With the imminent release of Open Banking Payment Initiation Services (PIS) by the Saudi Central Bank (SAMA) and UAE Central Bank issuance of “Aani” following CBE IPN, financial institutions are grappling with the challenge of instant payment compliance. The game-changing shift from Incumbent bank-to-bank transactions is set to disrupt traditional revenue streams, as intermediaries are no longer part of the equation. As banks expect to face shrinking in their revenues from traditional transactions, the need for innovative solutions has never been more urgent. In this context, we introduce some of the proposed ideas for banks to keep up with the pace and maintain steady growth through instant payments disruption.
The Challenge
Banks have long enjoyed substantial revenues from traditional transactions. However, Instant Payments are eliminating these intermediaries, slashing revenues by around 60%. The challenge lies in finding strategies to maintain payment transaction revenues and comply with instant payments regulations.
The Solution
Blinq steps in with strategic solutions and guidance to grab the full advantage of the Instant Payment & PIS offerings;
| API Monetization Scheme | Use Cases Examples | ROI | Suitable Customer |
|---|---|---|---|
| Flat Rate APIs |
Recommended for scaled
use cases with cast
service consumer base
Ex: Consumer to Consumer Instant payment (P2P) through 3rd parties with direct integration |
Mandated Services | |
| Bulk/Wholesale (Bundle Free Information APIs) | Higher value /lower volume use casese Consumer-to-merchant or Business instant payment (P2M or P2B) A bulk upfront bundle makes sense and can be repurposed by treasury teams as an asset | SMEs E- Commerce |
|
| Tiered-descending Rate |
High value/Low volume use cases
(I.e. BaaS, Fintechs as a Service)
Business to Business
(B2B or B2M or M2B) A tiered usage or transaction size based pricing works best as it’s up to corporate customer to decide on tier & factor it to their OPEX sheets |
Results
Here's the exciting part – using Blinq and our consultation experience, banks can implement these innovative monetization techniques.
KnowledgeNet's Blinq is not just a solution; it's a lifeline for banks leveraging the opportunities of Instant Payments & PIS through;
PIS and AIS Compliance: Blinq ensures swift and efficient compliance with PIS through cutting-edge technology, allowing banks and Fintechs to achieve immediate compliance without the hassle of prolonged development.
Cost Reduction and Penalty Avoidance: By facilitating regulatory compliance and automating processes, Blinq helps financial institutions avoid hefty penalties, ensuring that resources are utilized effectively.
Revenue Generation: Blinq is equipped with a powerful Billing Engine, enabling banks to monetize API calls when integrating with Fintech partners. This opens up new revenue streams, compensating for the decline in Traditional transaction revenues.
Banks don’t have to fear the changes brought by Open Banking. Your revenues are not lost; they are just waiting to be unlocked in new and exciting ways.
