Celent Model Bank 2016, Part III: Case Studies in Digital Payments and Cards

by Zilvinas Bareisis, April 13, 2016
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its ninth year, is to spotlight effective uses of technology in banking. The approach that Celent takes is to seek examples of best practices in technology usage which, in aggregate, would answer three questions below.

Every year Celent suggests five to eight categories and invite banks to nominate their technology initiatives. Celent analyst review all nominations and recognize a number of them, up to four per category, with a Model Bank award.

In 2016, Celent accepted nominations in seven categories and awarded 18 initiatives. The case studies of winning initiatives are profiled in a seven part report series published today:

  1. Digital Banking Transformation
  2. Omnichannel Banking
  3. Digital Payments and Cards
  4. Corporate Payments and Infrastructure Modernization
  5. Cash Management and Trade Finance
  6. Security, Fraud, and Risk Management
  7. Legacy and Ecosystem Transformation

 In Part 3, Celent profiles two award-winning initiatives in digital payments and cards.

  • Bank of America Merrill Lynch Digital Disbursements
  • RBC Wallet

Digital payments is a hot topic in the industry. The growth of mobile commerce — customers using their mobile devices for shopping (discovering, checking, considering) and buying — is fuelling the need for frictionless digital payments. Consumers live in an increasingly digital world with “shopping” embedded in conversations and lifestyle activities, facilitated by social platforms.

“The leading banks are starting to take control of their destiny in digital payments,” says Zilvinas Bareisis, a senior analyst with Celent’s Banking practice and author of the report. “This is evidenced by a growing number of banks launching their own digital wallets based on HCE technology as well as developing creative use cases that leverage real time payments infrastructures. And of course, remembering that a mobile device can give more control to consumers over their payments and enhance overall shopping and payments experience.”

Nominations for Model Bank awards were accepted in late 2015. The Celent Banking team selected winners based on business benefits, degree of innovation, and technology or implementation excellence. Each Model Bank winning initiative is presented as a detailed case study within the report, including descriptions of business drivers, solutions, success metrics, and future plans.

This 28-page report contains two Celent Model Bank case studies, four tables, and eight figures.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Model Bank Overview

3

 

Summary of Model Bank Award Winning Initiatives

5

Key Themes in Digital Payments and Cards

9

Bank of America Merrill Lynch: Digital Disbursements

11

 

Overview

11

 

Opportunity

11

 

Solution

12

 

Results and Future Plans

14

RBC Wallet

17

 

Overview

17

 

Opportunity

17

 

Solution

18

 

Results and Future Plans

20

Conclusion

22

Leveraging Celent’s Expertise

23

 

Support for Financial Institutions

23

 

Support for Vendors

23

Related Celent Research

24

Sign in to download reports and access personalized information