The European Payment Initiative is making headlines. We at fino are deal with the European Payment Initiative (EPI). This has been launched by 16 banks from the eurozone to create a unified payment solution for consumers and merchants in Europe that includes a payment card, a digital wallet and person-to-person (P2P) payments.
We welcome and support the initiative, as it is our mission to optimize business processes in the area of finance in order to help banks remain competitive in the future and give people more freedom. It is therefore a good step to want to provide payment services that meet customers’ needs. This certainly includes breaking down the existing fragmentation of European retail payments and supporting the five key objectives of pan-European reach, customer convenience, cost efficiency, security, European identity and governance. The idea, according to the European Central Bank, of aiming for global reach in the long term is also positive.
Creating strong added value
To achieve this and to be able to hold their own against already very successful global players, we believe that the creation of strong added value for customers should be at the center of all activities. In other words, it’s about much more than simplifying payments – it’s about creating new, beneficial business models. The key is to understand the context behind payments, to use the information and make life easier for customers, for example, to help them save money or automate accounting. That sounds like a wish list? It is, and one that has long been possible and is being implemented.
With the right technologies, accounts can be used not only as a source of payment, but also as a source of data for insights. After all, bank accounts reflect the lives of customers. If this data is incorporated into a user profile and supplemented with additional information, for example from invoices analyzed as part of a document service or from other sources, banks obtain valuable information. This information, in turn, can be put into context with the help of artificial intelligence and enables a comprehensive view of customers – and partners.
Being better than the global competition
The next step is to use these insights responsibly in the interests of the customer. One scenario, for example, is to recommend products or services that fit the customer’s life situation exactly. If the implementation of these recommendations is then made as simple as possible with the help of technology, banks can exceed customer expectations.
Since the bar is set high, it is essential to include this potential in considerations now. It is worth it. Because the combination of tradition and innovation, the financial knowledge of banks and the data science of FinTechs, can act as a game changer to make EPI a success. We would be happy to advise on this topic and help with implementation.
Yours, Björn Kahle
COO of fino
