Banks in the UK are allotting approximately $1.25 million towards modernizing payment systems in the upcoming year.
In the rapidly evolving world of finance, UK banks are gearing up for a significant overhaul of their payment systems. According to the latest findings from Volante Technologies' annual flagship research report, "The Big Survey 2025: Modernising Payments," UK banks are investing substantially in modernising their payment infrastructure.
Tactically spent budgets are crucial in this modernisation process, with an average budget of nearly $1.25 million allocated by UK banks over the next year. The aim is to meet evolving payment needs, comply with regulatory requirements, and stay ahead of the curve in a competitive landscape.
Cost efficiency and resilience are top motivators for UK banks, with more than a quarter (27%) citing these factors as their primary drivers. The focus on cost efficiency is reflected in the banks' preference for partners who can help lower risk, improve return on investment (ROI), and onboard new clients quickly.
The drive for real-time payments and the adoption of new standards like ISO 20022 are key areas of focus. By 2025, regulatory deadlines regarding legislation such as SEPA Instant Payments and SWIFT ISO 20022 will loom large. UK banks are already offering SEPA Instant Payments, and a further quarter say they are close to doing so.
Choosing the right vendors and tech partners is the biggest concern for UK banks, followed closely by concerns around internal skills and expertise to manage the transition. A quarter of UK banks are also concerned about the disruption modernising payments may cause. However, nearly all UK banks plan to implement a new payments solution, indicating a willingness to embrace change.
Strategic modernisation, progressing towards modernisation with small, carefully measured steps, seems to be the solution to these worries. Banks are exploring cloud options for modernisation, with more than two in five (43%) UK banks saying they are exploring this route, although they remain mainly on-premises.
Almost two-thirds (65%) of UK banks are planning to implement a new payments solution within six months, signalling a sense of urgency in the modernisation process. Understanding customers' priorities is important both in setting out a modernisation roadmap and in building a business case for modernisation.
While specific details about Volante Technologies' "The Big Survey 2025: Modernising Payments" focusing exclusively on UK banks are not provided, the broader context from the survey related to EMEA banks offers insights into general trends and priorities. Banks across EMEA, which includes the UK, are planning significant investments in modernizing their payment systems, with a focus on system replacement, technological advancements, operational efficiency, and regulatory compliance.
In summary, the fifth edition of The Big Survey shows banks recognise that modernising payments is crucial to survival in the evolving payments landscape. As UK banks navigate this journey, they are seeking partners who can offer resilient, compliant, and easily extensible solutions, standing to win big as payments enter its next era.
- In light of the significant investment UK banks are making in modernizing their payment infrastructure, it's evident that they are prioritizing cost efficiency and resilience, as shown by more than a quarter of banks citing these factors as their primary drivers.
- The modernization process in UK banks is also focused on adopting new standards like ISO 20022 and implementing real-time payments, with regulatory deadlines upcoming, such as SEPA Instant Payments and SWIFT ISO 20022, by 2025.
