What is a Payments Hub?
A payments hub enables banks to consolidate different payments processes into a single central, standardised and co-ordinated platform, which lowers Total Cost of Ownership, and reduces maintenance, support and risk, allowing for processing of all payment types.
It facilitates central managenment of liquidity, which enables better cash management, being a primary objective for financial institutions and their customers.
More importantly, payments hubs enable a phased approach to the payments evolution within financial institutions.
A well-designed Hub enables Financial Institutions to manage rules and payment processing logic from a central platform. This allows banks to replace and/or modernise components as they require and remain at the cutting edge, offering a very high level of flexibility for the bank to adapt to changing landscapes.
- Increased payment operations efficiency
- Single view liquidity management
- Improved risk management
- Processing rules managed in a single location – no necessity to manage in channels
- Simple addition of new payment services
- Replacement of or changes to components simplified
- Single points of integration provides a cleaner more effective architecture
- Complete transaction lifecycle management
- Support of interoperable and proprietary standards