How “Real-Time Treasury” Will Change Payment Transaction?

By Millena Kapamann

Imagine a world where cash is sent and received in real-time; the road to the real-time treasury is closer than we think. Soon, real-time treasury will shift the business models payment transactions by technological development and management. Therefore, here are some innovations we could face, from open banks to artificial intelligence.

Changes in predictive analytics

Predictive DATA analytics can determine customers’ responses; it also helps companies to optimize several processes. With the change coming soon, Real-time liquidity management capabilities will start to take shape. That is to say that digitization and automation will help to streamline treasury processes. That is to say that it will improve liquidity management and deliver more accurate DATA for risk management. With Data being the fuel of the new economy, statistical models will give more precise predictions. Financial officers are also relooking their technology capabilities. So, the real-time information flow area is getting more attention, which is crucial in managing financial aspects.

The possibility to cash at our fingertips

In recent years, interest in the development of cash transfer programs has been increasing. With the technology of Fingopay, the limitations to cash-transfers is no longer a technical issue. By favouring micro-payments, the main aim is to use our finger to make payments in a few seconds. Customers who registered to associate their vein signature with their bank card have the option of using “finger scanning technology” to pay for their items. This technology was installed at Costcutter, at Brunel University and uses biometric readers, which deploy infrared light to map customers veins in 3D, generating a unique personal identifier.

Instant payment friendly

Technology has changed our expectations of the time. Since companies and banks have been acknowledging customers expectations: as a result, they are more supportive of the ecosystem of instant payments. Bank systems realize the importance of providing a faster “real-time” experience to their customers: and as a result, they allow them to make instant payments and credit transfers no matter the place. The “real-time” transaction is proliferating widely, and it will permit the banks to react to changes as quickly as possible. In 2014, the Euro Retail Payments Board set up an innovative solution for instant payments in the Euro. It will be available to all payment service providers in the European Union. The Eurosystem is also working with the technology industry to ensure the support of the system functionality. For example, they have been defining expectations for infrastructures and offering clearing services for pan-European instant payments.

To sum up: changes are coming in the way we operate financially. In banking, the pace of change has been slow but innovative ideas are being set-up. As a result, biometrics software increases real-life payments and security. But we must also acknowledge that not everyone is ready to leave their cash and credit cards at home. Therefore, we expect that those who don’t want to be a part of this transformation will have alternative solutions. For example, fingerprint scanners on their phones can be their norm for transactions.

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