Accenture: Payments Get Personal – How to remain relevant as consumers seek control.

Report Link: Strategies to Stay Relevant in Payments | Accenture

Size of Report: 36 pages

Packed with key information mirroring the views of other analysts and reports, the survey undertaken by Accenture highlights the tempo of change has hastened. 94% of bank executives feel consumer behaviours, needs and desires are changing faster than they can deliver change in their core tech stacks. The report highlights how consumers want to personalise their payment experiences, retain control, and seek a more seamless, frictionless shopping experience that will pave the way for biometrics.

Accenture calculates that banks that take a timid approach to change transformation to modernise, digitalise and personalise their offerings stand to lose 4.6% of revenue totalling US$89 billion in just the next three years! The biggest commercial impact for procrastination will be felt in North America, then APAC, then LatAm.

The report highlights:

• The future is digital even for face-to-face transactions.
• Rapid growth in adoption and frequency of use for alternative payment methods, largely through digital wallets and skewed toward smaller to mid-size payment values. APAC and LatAM regions lead the adoption.
• Desire for responsible embedded finance solutions. This is where the money moat can exist to replace lost interchange as rapid instant payment use accelerates. Up to 62% of consumers believe this can replace credit cards as a financing option and 40% would take up embedded finance if offered by their banks rather than a fintech.
• The interest rate environment could see one third of consumers switch from traditional banks issuing credit cards that are not providing personalised services, half of this number will leave owing to the lack of modern functionality offered by banks.
• Figures 6 and 7, on pages 10 and 11 respectively, offer a good breakdown by region of how consumers choose to pay for small and larger payments respectively, split by in-person and online payments.
• Figure 12 on page 23 highlights the brand trust value banks have, which buys a little time, but this competitive edge is strained and might not last much longer. Banks need to change now. Because of this brand trust, there is a window of opportunity for banks to launch super apps and over half of consumers would trust a bank super-app. Example from South Africa of Avo from Nedbank.
• The report concludes with four strategies banks can take to deliver seamless experiences; they are:

• Partner to Scale for example, blik in Poland.
• Simplicity and speed by focusing on deep insights and using tools like AI to contain cost and streamline experiences.
• Niche focus on your offering.
• Beyond Payments through embedded finance and managing a portfolio of APIs and partner services such as via a super app.

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