This joint report from Logica and Capital Economics contends that the existing payments infrastructure is failing to keep pace with technological innovation, resulting in a significant brake on economic growth, and opening the way for new competitors to move in on banks' core payments territory.
Domestic and international payment infrastructures are not able to support the low cost, fast, innovative services demanded in today's markets, states the report. Unless reform is forthcoming, banks will lose a part of their core revenues to new entrants. New competitors include mobile operators set on securing as much of the mobile commerce value chain as possible.
The report concludes that elements of banking allied to cash transmission will be subject to radical restructuring and financial firms will be forced into new partnerships with non-banking organisations.
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