ROLE OF TECHNOLOGY IN BANKING

Abstract:
Ever since the Nationalization
of Banks in India, Banking
Sector has been
growing with leaps and bounds
and catering to the needs of
various segments of the
society. In recent times, the
Banking Sector has been
making rapid straights by
using information technology
as a platform and
endeavouring to scale
higher
heights. Commercial Banks in
India are now becoming a
one-stop Supermarket.
The focus is shifting from
mass banking to class banking
with the introduction of
value added and customized
products. Technology allows
banks to create what
looks like a branch in a business
building‘s lobby without having
to hire manpower
for manual operations. The
branches are running on the
concept of 24 X 7 working,
made possible by the use of
Tele banking, ATMs, Internet
banking, Mobile banking
and E -banking. Today, E-
Banking is used as a strategic
tool by the global banking
sector to attract and retain
customers. An attempt has been
made in this paper to
examine E-Banking and its
implications in banking
industry.
Introduction:
With the Globalization trends
world over it is difficult for
any nation big or
small, developed or developing,
to remain isolated from what is
happening around.
For a country like India, which
is one of the most promising
emerging markets, such
isolation is nearly impossible.
More particularly in the area of
Information technology,
where India has definitely an
edge over its competitors,
remaining away or uniformity
of the world trends is untenable.
Financial sector in general and
banking industry in
particular is the largest spender
and beneficiary from
information technology. The
technological evolution of the
Indian banking industry has
been largely directed by
the various committees set up
by the RBI and the government
of India to review the
implementation of
technological change. No
major breakthrough in
technology
implementation was achieved
by the industry till the early 80s,
though some working
Abstract:
Ever since the Nationalization
of Banks in India, Banking
Sector has been
growing with leaps and bounds
and catering to the needs of
various segments of the
society. In recent times, the
Banking Sector has been
making rapid straights by
using information technology
as a platform and
endeavouring to scale
higher
heights. Commercial Banks in
India are now becoming a
one-stop Supermarket.
The focus is shifting from
mass banking to class banking
with the introduction of
value added and customized
products. Technology allows
banks to create what
looks like a branch in a business
building‘s lobby without having
to hire manpower
for manual operations. The
branches are running on the
concept of 24 X 7 working,
made possible by the use of
Tele banking, ATMs, Internet
banking, Mobile banking
and E -banking. Today, E-
Banking is used as a strategic
tool by the global banking
sector to attract and retain
customers. An attempt has been
made in this paper to
examine E-Banking and its
implications in banking
industry.
Introduction:
With the Globalization trends
world over it is difficult for
any nation big or
small, developed or developing,
to remain isolated from what is
happening around.
For a country like India, which
is one of the most promising
emerging markets, such
isolation is nearly impossible.
More particularly in the area of
Information technology,
where India has definitely an
edge over its competitors,
remaining away or uniformity
of the world trends is untenable.
Financial sector in general and
banking industry in
particular is the largest spender
and beneficiary from
information technology. The
technological evolution of the
Indian banking industry has
been largely directed by
the various committees set up
by the RBI and the government
of India to review the
implementation of
technological change. No
major breakthrough in
technology
implementation was achieved
by the industry till the early 80s,
though some working
Abstract:
Ever since the Nationalization
of Banks in India, Banking
Sector has been
growing with leaps and bounds
and catering to the needs of
various segments of the
society. In recent times, the
Banking Sector has been
making rapid straights by
using information technology
as a platform and
endeavouring to scale
higher
heights. Commercial Banks in
India are now becoming a
one-stop Supermarket.
The focus is shifting from
mass banking to class banking
with the introduction of
value added and customized
products. Technology allows
banks to create what
looks like a branch in a business
building‘s lobby without having
to hire manpower
for manual operations. The
branches are running on the
concept of 24 X 7 working,
made possible by the use of
Tele banking, ATMs, Internet
banking, Mobile banking
and E -banking. Today, E-
Banking is used as a strategic
tool by the global banking
sector to attract and retain
customers. An attempt has been
made in this paper to
examine E-Banking and its
implications in banking
industry.
Introduction:
With the Globalization trends
world over it is difficult for
any nation big or
small, developed or developing,
to remain isolated from what is
happening around.
For a country like India, which
is one of the most promising
emerging markets, such
isolation is nearly impossible.
More particularly in the area of
Information technology,
where India has definitely an
edge over its competitors,
remaining away or uniformity
of the world trends is untenable.
Financial sector in general and
banking industry in
particular is the largest spender
and beneficiary from
information technology. The
technological evolution of the
Indian banking industry has
been largely directed by
the various committees set up
by the RBI and the government
of India to review the
implementation of
technological change. No
major breakthrough in
technology
implementation was achieved
by the industry till the early 80s,
though some working
ABSTRACT In the development of Indian Economy, Banking sector plays a very important and crucial
role. With the use of technology there had been an increase in penetration, productivity and efficiency.
The banking sector has embraced the use of technology to serve its client‟s faster and also to do more
with less. Emerging technologies have changed the banking industry from paper and branch based
banks to digitized and networked banking services. Unlike before, broadband internet is cheap and it
makes the transfer of data easy and first. Technology has changed the accounting and management
system of all banks. Information technology refers to the acquisition, processing, storage and
dissemination of all types of information using computer technology and telecommunication systems.
Information technology architecture is an integrated framework for acquiring and evolving IT to achieve
strategic goals. The branches are running on the concept of 24 X 7 working, made possible by the use of
Tele banking, ATMs, Internet banking, Mobile banking and E -banking. These technologies driven
delivery channels are being used to reach out to maximum number of customers at lower cost and in
most efficient manner. The beauty of these banking innovations is that it puts both banker and customer
in a win- win situation. Effective use of technology has a multiplier effect on growth and development.

Technology has taken the banking system to the level of greater transformation. The introduction of computers and other electronic
devices has made banking easier for everyone. Technology has its impact on all the sectors and in our daily lives but the changes brought
in the banking sector have transformed the lives of the people to another level. Efficient and quick services not like before with burdens of
lots of paperwork and maintenance of files. New banking has helped the industrial, agricultural system to such an extent by providing
loans to the small farmers at small rates and also taught and helped them in making an investment. With the globalization of trade, the
bank provides the funds to the customers, if they require foreign currency and that too with safety measures.
 1

Some of the developments brought by the technology driven banking sectors are like

E-Banking

E-banking facilities are through the usage of the computer via the internet. In modern times e-banking has really made the lives easy and
cheap too.

Some of the advantages of E-banking are like.

 The customer can view his balance, details of recent transactions any time a day and as many times he wishes too.

 He can download bank statements, view images of the paid cheque, can order new cheque books online, and can also download the
periodic account statement.

 Fund transfer can be made between the customers linked accounts.

 Fund transfer to the third party within the bank.

 Fund transfers to the third party having his bank account in another bank.

 Investment, purchase or sale.

 Bill payments and many more.

It is convenient to the customer as now they don’t have to go to their respective banks and wait for their chance. In fact, not only the
customer but also been very flexible to the banking business.

2
ATM services

Automatic Teller Machine has become common in many parts of the nation. People can draw cash from their accounts in the bank from
24 hours working ATMs spread across the length and breadth of the nation.

Debit and Credit cards

Debit and Credit cards have again added to the convenience of the consumers, who can make payments using these at a reasonable rate of
interest. This has reduced the element of risk involved in carrying cash to all places.

Telebanking

Telebanking is a system in which banks provide their customers with the facilities of performing transactions through telephone.

NRI banking services

In many countries like India, this technology has been adopted. In this, the ones who work abroad send money to their family and bank
within no time convert the currency and give to his family members.

Rural Banking

The majority of the population in India is living in rural areas. The development of banks in remote areas has helped the people, economy,
small scale industries to develop and contribute to national income. Previously, people living in rural areas have to travel miles for
banking but now with one swipe thing, everything gets possible. It has helped a lot of agricultural sectors by providing loans at lesser
interest and many more schemes.

Which was the first bank to introduce e-banking in India?

ICICI bank was the first to provide its customer with the e-banking in the year 1987.

Importance of Technology of Banking: Many of the IT initiatives of banks started in the late 1990s, or early 2000, with an emphasis on the
adoption of core banking solutions (CBS), automation of branches and centralisation of operations in the CBS. Over the last decade, most of the
banks completed the transformation to technology-driven organisations.

Importance of Technology of Banking

Introduction of computer and other electronic technologies in banks has the following advantages which state the importance of such new
technology in banking :

1) Increase in Efficiency : Efficient and quick service to customer can be provided with the help of modern technologies.

2) Handling of Information : Creation of up-to-date monitoring and information system and strengthening internal control and housekeeping and
reporting functions are provided. Sorting of information becomes easy.

3) Cost Reduction : There is reduction in cost including floor space because of the use of modern techonology.

4) Accuracy : The clearing of cheques, pass book entries, inter-branch and inter-bank reconciliation and such other functions can now be carried
out quickly, correctly and legibly with modern technology.

5) Customer Service : With internet facility, the customers need not go to the bank office. All banking transactions and updating of accounts can
be done while at home or in transit. Networking means sharing of information, giving messages and being in face to face contact even when apart.
It is the meeting without moving.

The Impact of Information Technology in Banking System

All in all, this auspicious technology influences the banking industry, mainly in the following
three aspects: 1. Technology is influencing competition and the degree of contestability in
banking. Due to the development of technology, bank’s superiority in information is
deteriorated. Entry barrier have been declining, new competitor have emerged. Some financial
products and services have become more transparent and commodities, customer show willing
to unbundled the demand for financial products and services, all these lead to a more
competitive market environment. Due to lowered entry and exist and deconstruction, for some
sub-financial markets, contestability in banking is also raised. 2. Technology influence Economy
of scale: Competitive pressure force banks to lower their cost. Bank seeks to get economy of
scale in bank procession instead of being a big bank. Bank seeks to secure the optimal business
structure, and secure the competitive imperative of economy of scale. There are other options
to get economy of scale, including joint venture and confederation of financial firms. Small firms
also can get economy of scale by outsourcing, i.e. buy in economy of scale. 3. Technology
influence the economics of delivery Technology has a major impact on the way banking and
financial services are delivered. A wide range of alternative delivery mechanism becomes
available, Internet, ATM… these Reduces the dependence on the branch network as a core
delivery mechanism. With the development of technology, the financial systems are
substantially over-supplied with delivery system through a duplication of net work, bank has to
change their delivery strategy, rationalize their branch network strategy, and widen the range of
delivery option. Banking industry has been taking advantage of the following 22 Technology
Products: (1). Net Banking; (2). Credit Card Online; (3). One View; (4). InstaAlerts; (5). Mobile
Banking; (6). NetSafe; (7). e-Monies Electronic Fund Transfer; (8). Online Payment of Excise &
Service Tax; (9). Phone Banking; (10). Bill Payment; (11). Shopping; (12). Ticket Booking; (13).
Railway Ticket Booking through SMS; (14). Prepaid Mobile Recharge; (15). Smart Money Order;
(16). Card to Card Funds Transfer; (17). Funds Transfer (eCheques); (18). Anywhere Banking;
(19). Internet Banking; (20). Mobile Banking; (21). Bank@Home (i) Express Delivery; (22). Cash
on Tap: (ii) Normal Delivery.

6
Advantages of Technology In Banking
Some advantages of online banking go hand-in-hand with simply being online; others
are competitive advantages provided by online banks taking advantage of their cost
structure. The most prominent benefits provided by online banking include:

 24/7 account and service access

 Speed and efficiency
 Online bill payment
 Low overhead can mean low fees
 Low overhead can mean high interest rates on deposit accounts.

24/7 Account and Service Access

Online banks are accessible 24/7, as long as you have an internet connection. Some
online banks, such as Ally Bank, take this perk one step further, giving you 24/7
phone access to a real-life customer service agent. This can be extremely helpful if
you don’t have access to the internet, or if you feel you need the assistance of a human
brain, rather than a computer algorithm.

Speed and Efficiency

If you need to transfer money, apply for a new loan, or perform nearly any banking
transaction, you’ll typically have to wait in line at a bricks-and-mortar banking
location. With an online bank, there’s never any waiting.
7
As long as you can log in, you can access your accounts, request a new credit card, or
perform nearly any banking transaction you desire without driving down to a bank or
waiting in line.

Online Bill Payment

One of the great advantages of online banking is online bill pay. Rather than having to
write checks or fill out forms to pay bills, once you set up your accounts at your
online bank, all it takes is a simple click — or even less, as you can usually automate
your bill payments. With online bill pay, it’s easy to manage your accounts from one
central source and to track payments into and out of your account.

Low Overhead Can Mean Low Fees

Online banks don’t have to pay for things like electricity, janitorial services,
landscaping, or rent, so they can pass those savings along to customers. Typically, this
means that online banks can charge fewer fees than traditional banks. For example,
most online banks offer a free online checking account with no deposit, along with
other no-fee bank accounts, such as IRAs. There are a number of online banks with
free checking and no minimum balance; if you’re worried about applying for an
account with bad credit, you might be able to open a bank account online for free, no
credit check required, although there might be ongoing fees.

Low Overhead Can Yield High Rates

In addition to offering low fees, online banks often have the best interest rates,
whether you are looking for a certificate of deposit, a high yield checking account or
deposit accounts with high interest, such as a money market account. Although rates
fluctuate, if you look at a current list of best CD rates or best free online checking
account rates, you’ll usually find that the banks paying the best interest rates are
online banks.

8
Disadvantages
No one type of bank can be the best at everything. In spite of their many advantages, there are some
drawbacks to using online banks as well. Here are some of the downsides of working with an online bank:

 Technology issues
 Security issues
 Inefficient at complex transactions
 No relationship with personal banker
 Inconvenient to make deposits

Technology Issues
In many ways, an online bank is only as good as your — or their — internet connection. If there’s a
power outage, or if servers go down, you might not have any access to your account whatsoever. While
some banks offer a phone number for customer service, it might be overwhelmed if online access is
down. With a real bank, you can always find someone to talk to in the branch.

Security Issues
While many online banks are reputable and well-established, sometimes it can be hard to feel comfortable
with a bank that doesn’t have a physical presence, particularly when large sums of money are involved. If
a website suddenly folds up, what will happen to your money? There’s also the risk of identity theft — or
actual theft — if someone gains unauthorized access to your account via a hacked or stolen password or
log-in credentials.

Inefficient at Complex Transactions

Online banks might be able to transfer money between accounts or pay bills, but you might be more
comfortable with an international, bricks-and-mortar bank if you have complex transactions. Worldwide,
business-oriented banks like Chase have global transaction capabilities, such as the ability to send
payments to more than 35 different currencies worldwide, that online banks might not be able to muster.
Without a real-world presence, most online banks can’t even offer the services of a notary public, which
require an in-person visit and necessary for most important financial transactions like buying a home.

No Relationship With Personal Banker

Over time, you can develop a relationship with a personal banker if you visit a traditional bricks-and-
mortar location. If you’re dealing with an online bank, on the other hand, you’re typically handed off to
an anonymous customer service agent who is unlikely to know you from the next customer. If you’re
really in a bind, financially speaking, having a relationship with someone who can help and who knows
you well can be a major advantage over a strictly online banking relationship.

9
Inconvenient to Make Deposits
It might seem counterintuitive that a bank, whose purpose is to attract assets, makes it hard for customers
to make deposits, but that can be true in the case of some online banks. With an online bank, you can’t
simply drop off cash or a check at a local branch. In fact, some online banks, like Ally Bank, won’t accept
cash deposits at all. Using Ally Bank as an example, to make a deposit you’ll have to mail a check,
transfer money from another bank or another account, or for use the bank’s e-check deposit service.

10
Scope of the Growing
Technology in the
World Financial
Ecosystem
Financial economic system in world has been growing rapidly since the past two
decades. It has had a catalytic effect since the Government’s introduction and
encouragement towards digitization of monetary assets and services. Financial
Institutions such as investment firms, venture capital organizations, banks have
drastically evolved in terms of how they undertake financial proceedings, conduct
financial services, and carry out related procedures.

One aspect of this evolutionary transformation is the involvement of technology in

financial ecosystem. Technology has paved way to innovative processes and ways that
can transform traditional transactions into effective solutions. Banking software, mobile
banking, blockchain technology, biometrics and so on are front-runners in Financial
Technology.

11
Blockchain Technology

Blockchain technology has promised to take the financial industry by storm where it has
assured to create digital-ledger systems that cannot be altered easily. It allows for a
combinatorics of shared databases and cryptography enabling multiple parties that may
not know each other from different geographical locations to simultaneously access this
constantly updated digital ledger. This technology further makes happen Bitcoins,
Litecoin, Dogecoins, and other virtual currencies to be anonymous and secure.

While banks are evaluating the possibilities, it has been estimated that Blockchain has
the potential to save millions of dollars in cash since it dramatically reduces processing
costs. This technology will therefore make banks profitable and valuable. Blockchain
consulting services would then be required to bridge the gap that allows for literacy and
awareness in the field by its official users.

Blockchain has many-fold advantages. Firstly, it reduces fraudulent transactions, in

financial intermediaries like stock exchanges and money transfer services. Secondly,
it would allow organizations to access the verification details of a client by another
organization avoiding repetition of the KYC process, thereby reducing administrative
costs. Thirdly, the tech is powered to facilitate smart contracts as they bring about
storage of any kind that can be executed only by involved parties entering relevant
keys. Lastly, NASDAQ and Australian Securities Exchange are some entities actively
looking at Blockchain consulting services and solutions that can improve efficiencies
and cut costs.

Digitized Banks
A decade ago, people had to visit banks to make payments, money transfers, open
accounts and for other banking processes. With the involvement of technology, these
frequent bank visits have drastically reduced. A common man today, relies on mobile
apps and other payment gateways to do the same thing in matter of seconds. Internet
banking has revolutionized the way people interact with financial services.

The availability of data into digital format through technology enable banks to provide
enhanced customer services. This leverages a customer by helping him save a lot of
time. Moreover, digitalization has reduced human errors and is steadily building
customer loyalty.

Customers today, are seeking interactive banking experiences to meet the ‘now-
standards-of-living.’

12
Emergence of fin-tech has forced the traditional banks to opt for options such as cloud,
data analytics, APIs, mobile phones, play software, Internet of Things all of which make
up Open Banking a possibility. These inclusions, needless to
say, will create may challenges that may require many experts in financial consulting
services to address these issues.
Mobile Banking
Mobile banking allows a person to undertake and carry on a financial transaction
anywhere in a matter of seconds. Fin-tech companies are working on it to make the
experience as affordable and as simple as possible. Apps are taking more command
when it comes to global payments and commerce. On an average, in a moderately
developed economy, an earning person, makes 4 financial transaction in a week.

Many banks are adopting the ‘Mobile-app first’ model as they believe this will reduce
transactional and processing costs in banks. With this, Mobile app
development companies are entrusted to work on creating secure platforms that can
host payment gateways. Some of these apps are inclusive of biometric verifications
when high transactional accounts are under process.
Next-generation chatbots and voice-operated assistants are being developed at
interfaces as it can cater to a person’s financial assistance needs.  These are brought
around by Artificial Intelligence that can also track fraudulent behavior easily.

Impact in the existing Eco-System

Loan Approvals – Banking stream has witnessed a new parallel growth that caters to
financial needs of an individual or a business through loans. Financial Technologies is
changing the framework of how loans are perceived and approved.
Insurance Processes –Insurance is no longer rigid but has evolved to be customized to
suit a customer’s needs. Payment of premiums have reached to a stage where it can be
automated, and related payments with expansions, changing terms are made simpler.
Asset Management –One of the foremost problem’s individual, high-salaried individuals,
businesses are faced with is the wealth management aspects. Financial technology
enables this tedious process by allowing its parties to compare customized plans to
create and implement in-order to manage financial assets and investments.
Affordable Transfers –Time and again, banks charge a lot of money for inbound and
outbound transactions. Fin-Tech makes this economical and affordable. Merchant
accounts are needed on a mandatory basis in order to minimalize the transaction costs
between a customer and a business while transferring money to-and-fro.

13
What will drive Financial Technologies’ future?
Fintech’s Innovation and readiness to adapt and use technology change will drive this
force towards its precipice. Citizens are no longer spared to be dormant, in-fact seeks
responsibility to create a digital economy. Digital era is paving way to capitalize through
many feasible solutions.

With the increase in mobile and online banking transactions, there is a need of security
now than ever. Digitalization would make the system vulnerable to unwanted exposure,
hacks and bugs. Blockchain technology with its complex cryptography methodologies
promises to curb this although many critics are skeptical about the scenario.
Acceptance and increase in the trust factor will always pose as a challenge in the
banking realm. The only way to conduct this is by creating awareness which will likely
turn into a crucial factor in the whole process.

Government has taken steps to exempt traders from taxes levied through adaptation of
electronic payments, cashless transactions, and other payment gateway systems.
Digitization of financial ecosystem powered by Blockchain services, Artificial intelligence
schema, mobile and internet banking, without a doubt, is Fin-Tech’s future.

14
Inter-connecting the Digital Payments
Ecosystem
It doesn’t take a financial expert to notice that digital payment adoption is growing, and
research bears this out: Globally, electronic payment volumes are increasing at
approximately 10% annually, with double-digit growth likely to continue through 2021.

The average consumer makes just over 375 electronic payments per year

In the U.S. alone, where the average consumer makes just over 375 electronic
payments per year, credit card payments grew by an average of 8% year-over-year
between 2012 and 2015 and by more than 10% year-over-year in 2016 and 2017. Most
of that growth was card payments replacing cash.

This phenomenon is not new, but does appear to be accelerating, driven by factors
such as an abundance of new electronic payment methods—many of them layered on
top of existing payment methods—focused on convenience, reliability, security, and
speed.

For the companies delivering these services, meeting user expectations means
investing in a distributed presence that can challenge traditional network and system
architectures. Just as people gather together in cities to gain the synergies of a social
network, for business and leisure, there is a parallel in the “urbanization of IT,” with
payments players creating infrastructure with direct access to data sources, service
providers, networks and clouds to gain the performance and cost benefits of direct
connections.

Simply put, the more transaction components—data, applications, networking controls,

and associated technologies—that businesses can interconnect at secure points close
to their end-users, the more successful their digital payment services will be.

15
Choosing The Right Partner

A white paper developed by the Initiatives Group and released last year by Equinix, Inc.
identified three key trends shaping the worldwide real-time payments industry – and all
three illustrate why businesses navigating the industry need to carefully examine their
ecosystem and consider rearchitecting their infrastructure to solve
some of the fundamental challenges that impact their ability to reach target users and
interconnect with business partners.
The key trends outlined in the white paper, which includes case studies of the Americas,
Europe, and Asia-Pacific markets, are:

 Real-time payments: Though initial developments in the real-time payments space were

focused on consumers, the focus has shifted to businesses and merchants as
consumers have proven reluctant to pay for payments. The B2B space, by contrast, has
seen a proliferation of solutions, including the invention of a “request to pay” functionality
with the associated documentation attached. When funds are to be securely transferred
within seconds, it places higher demands on the underlying technology of payment
systems, especially for processing fraud in real-time which means low end-to-end
latency and adjacency of third-party data streams is critical.
 Regulatory intervention: A growing number of regulators are mandating that personally
identifiable information, encryption keys and payment-related data be kept within the
country (ex. General Data Protection Regulation (GDPR) which took effect in the EU in
May 2018). At the same time, these regulators seek to boost economic efficiency by
driving greater adoption of electronic transaction technology, and to promote competition
and innovation by opening customer banking data to third parties.
 Open banking, which could draw new players into the industry as banks create AP
gateways for third-party providers with authorized access to customer data, facilitating
the creation of new products and services and consequently leading to new
opportunities to add value through data.
Private, direct connection between multiple payment players is critical in the evolving
world of digital payments. This is especially true for financial institutions, who are trying
to build payment hubs that connect to all payment rails from a single location, so they
can centralize common functions such as fraud screening as well as lower their
networking costs. Establishing connections with new partners through traditional
methods such as an MPLS network can take weeks or even months, whereas
connections between companies within the same data center can be set up overnight –
or within minutes, if they are virtual connections on a cloud exchange. Payments
providers who leverage multi-tenant “meet-me”  network architecture to directly connect
with partners through neutral colocation facilities have seen reductions in their new
partner and customer network onboarding times happen within 24 hours or less, while
external links have taken days, if not weeks.

16
As the digital payments ecosystem continues to evolve, it challenges both existing
business models and the infrastructure underneath. Today, the rails on which money
moves are not only distinct in their messaging formats and protocols, but often the
infrastructure supporting them, which tends to be purpose-built for transferring payment
details and little else. Open APIs are going to change this model, in part by adding room
for additional data that can create value around the transaction.

We expect that sooner than later companies within the payments ecosystem will begin
taking advantage of these open APIs, deploying payment hubs capable of not only
serving existing rails in a combined environment, but supporting new networks (e.g.,
blockchain-based) that compete with and add additional value to them.

Direct interconnection to financial service providers for digital payment

purposes is expected to grow by 47% by 2021

The result will be payment hubs relocating to centers where providers can leverage
private connections with partners to exchange data and process payment traffic in ways
that are not possible with today’s limited architecture. It is therefore critical that payment
companies prepare for this future by rebuilding and their architecture for colocation.
According to the Global Interconnection Index Vol. 2, a market study published by
Equinix that analyzes worldwide direct and private traffic exchange, direct
interconnection to financial service providers for digital payment purposes is expected to
grow by 47% by 2021.

17