“Recent national legislation and European regulations are offering banks an opportunity to transition to a new payments model, focusing on customer experience and innovative services,” highlighted Giannis Grammatikos, General Manager and Head of Retail Bank Products at Piraeus Bank, during the 9th Payments360 Conference, powered by DIAS.
According to Grammatikos, the new European framework for instant payments, along with national fee regulations, is reshaping traditional charging structures. However, implementing alternative “micro-charges” is not the solution.
Instead, a shift towards a high-value model is essential, providing real benefits to customers and ensuring sustainable revenue for banks. This transformation hinges on three key pillars:
1. Enhancing the existing payment services. Grammatikos suggested enriching the payment experience through:
- Subscription models for a “digital relationship,” featuring premium accounts that offer real-time support, exclusive benefits, insights, and secure financial management.
- Budgeting and alert tools within mobile applications to assist customers in managing their financials.
- Tailored business services, including real-time reconciliation and cash flow monitoring tools linked to payments.
2. Developing new products and services beyond mere payments.
Instant payments not only provide speed, but also valuable data that allows for personalization, a point emphasized by Grammatikos. The role of technology and Artificial Intelligence is critical here:
- AI and analytics for customized offers: From transaction monitoring to models that recommend products, investments, or saving strategies.
- Robo-advisory services: Automatic investment profiles and capital management recommendations based on clients’ objectives, age, and risk tolerance.
- Real-time microcredits: Behavioral analysis and transaction profiles enabling small, temporary credits to be issued instantly during payments.
3. Expanding into new ecosystems beyond traditional banking.
Grammatikos noted that as technology firms, telecommunications companies, and fintechs penetrate the financial sector, banks must also stake their claim in adjacent ecosystems:
- Offering services outside core banking, such as telecommunications.
- Integrating into third-party platforms, positioning the bank as a provider of API-driven services in sectors like real estate, insurance, or B2B markets.
- Collaborating with startups and other entities to facilitate embedded finance—be it in physical retail, logistics, or consumer technology.
Thus, banks evolve from being mere payment processors to becoming infrastructure providers and value-added platforms.
