Through this move, CIMB Bank seeks to merge real-time, ACH, RTGS, and cross-border transactions onto a unified payment platform, in turn advancing payment transformation in the region.
Considering the current environment, with the industry working toward ISO 20022 standardisation, the new platform, which acts as the foundation for CIMB Group’s regional payment platform, enables the financial institution to benefit from optimal data exchange, efficient processing, and insights that improve interoperability, security, and compliance. Additionally, through this new unified solution, CIMB Bank intends to minimise the complexity of managing siloed legacy systems to achieve increased efficiency and agility while reducing cost and risk.
Furthermore, commenting on the news, representatives from CIMB Bank mentioned that the financial institution’s payment transformation is defined by the re-architecture of its core payment infrastructure to merge all payment flows. With this enterprise-wide initiative, CIMB aims to develop its operations, accelerate digital convergence, and facilitate simplified, secure, and intelligent payment experiences for both consumers and businesses.
In line with global initiatives, payment trends in Asia are transforming how businesses and individuals conduct transactions. Emerging trends, including cross-border payments and Open Banking, are moving the region away from traditional initiatives, facilitating increased connectivity and efficiency in the financial ecosystem. Digital payments adoption is at an all-time high across Asia, with Southeast Asians being among the largest users of digital wallets. Also, real-time and cross-border payments are expanding due to regional collaborations and technological developments, leading to a more interconnected financial landscape.
Moreover, embedded payments are projected to reach a global transaction value of USD 2.5 trillion by 2028, and in Asia, the adoption of Embedded Finance is providing opportunities across several sectors. Also, Open Banking plays a significant role in the region, expected to rapidly expand and foster innovation and competition in the financial services sector.
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