Both systemic and central banks are embarking on a new wave of innovation, with a focus on digital direct payments.
The rapid growth of direct payments, recent national legislation aimed at reducing fees, and the new European regulatory framework offer “an opportunity for banks to adopt a fresh model in the payments market that prioritizes customer experience and new services,” stated Yannis Grammatikos, General Manager and Head of Retail Bank Products at Piraeus.
“The pressure on payments revenue drives us to innovate, which is beneficial. It paves the way for a new banking paradigm that centers not on ‘transaction fees’ but on data, personalization, technology, and ecosystems,” he explained. This strategy will be built on three key pillars:
- Enhancing the value of current payment services through subscription-based “digital relationship” models and budgeting & alerts tools integrated into mobile apps.
- Developing new personalized products and services leveraging artificial intelligence, driven by payment-generated data.
- Expanding into new ecosystems, including telecommunications and integration with third-party platforms.
As highlighted by Yannis Stournaras, Governor of the Bank of Greece, at the 9th 360 Payments Conference organized by DIAS, the adoption of new technologies has significantly modernized the Eurosystem of banks. Representatives of systemic banks also discussed emerging trends in the fast-evolving landscape of instant payments.
Stournaras pointed out the upgrade and modernization of central bank infrastructures within the Eurosystem, utilizing technologies like Distributed Ledger Technology (DLT) in services such as TARGET and in instant payments through the TIPS service, marking it as a success story.
Additionally, the Governor mentioned the digital euro project, which is being developed with the involvement of various market participants engaged in the payments sector.
