Based on the press release information, the collaboration marks a significant milestone in Security Bank’s digital transformation and is set to help better real-time payment customer experience
Under the partnership, Security Bank will implement ACI’s cloud-native Enterprise Payments Platform solution, which is going to help the Bank to unify its payments platform and facilitate the interoperability of payment services and gateways for high- and low-value payments like InstaPay, Philippine Domestic Dollar Transfer Service System (PDDTS), PESONet, Swift, and PhilPaSSplus on ISO2022 standards. The new modernised payment hub enables Security Bank to roll out innovative products and services to customers in an expedited manner and add new payment types in a simple and cost-effective way to its core infrastructure.
As per ACI Worldwide’s 2023 ‘Prime-Time for Real-Time’ report, real-time payment transactions in the Philippines are expected to increase from 625 million in 2022 to 1.5 billion by 2027, representing a CAGR (compound annual growth rate) of 18.7%. As paper-based transactions dominate 98.4% of payments volume and real-time payments represent only 0.7% share of payments volume in 2022, the market has yet to see an inflexion point. Per the announcement information, under its Digital Payments Transformation Roadmap (DPTR) 2020-2023, Bangko Sentral ng Pilipinas (BSP) is looking to convert 50% of total retail payments to electronic channels and boost the number of Filipino adults with bank accounts to 70%. Although significant progress toward achieving these goals has been made, there is still potential to reach the economy’s underbanked and underserved segments and unlock the benefits associated with real-time payments.
Leslie Choo, Senior Vice President, Managing Director – APAC, ACI Worldwide advised that the Philippines is among the fastest growing economies in ASEAN, with a 7.6% GDP growth in 2022. Per the spokesperson, embracing digital real-time payments to foster financial inclusion and innovation is considered pivotal for the region, especially due to the increase in a young, tech-savvy customer base. As Security Bank seeks to drive customer centricity and redefine the digital real-time payments landscape, ACI is to support the Bank with advanced payment hub technologies in furthering this transformation. The official added that the bank’s robust solutions go from powering country-wide real-time payment ecosystems to interconnecting cross-border real-time payment networks and enabling the integration of different payment types, such as the merging of high- and low-value payments into a single, unified, intelligent, cloud-native payment hub.
Stephen John Bell, SVP and Channels Network Group Head at Security Bank added that digital real-time payments are becoming ubiquitous, with current customers looking for an increasingly connected, simplified customer experience. Per their statement, ACI’s modern, scalable, and cloud-native infrastructure is set to power real-time payments to meet the dynamic demands of their customers in the digital era, with this initiative and the bank’s investment in innovative payment tech believed to showcase its commitment to customer-centricity.
What is more, John Cary L. Ong, EVP and Transaction Banking, Group Head at Security Bank added that a modernised real-time payment solution provides financial resiliency and agility for Philippines-based businesses through enhanced cash flow management and improved business liquidity. When talking about Filipino customers, they are set to benefit from a fast and seamless customer experience through secure digital channels, as the partnership with ACI signifies the bank’s commitment towards delivering a ‘BetterBanking eXperience’.
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