David Kretz, head of global payments, global transaction services, Bank of America Merrill Lynch:
With increasing adoption of electronic and mobile payments, and the continuing globalisation of commerce, the financial industry is focused on making payments truly global, fast, price-appropriate and data rich. One potential way to achieve these objectives is interoperability of local real-time payment (RTP) systems. End-users will likely come to expect real-time processing of their cross-border payments in the future.
With banks responsible for the actual movement of money, we recognise three primary challenges to RTP interoperability: settlement risk, regulation and oversight/standards. A real-time user experience depends on immediate funds availability to receivers, yet current settlement activities supporting cross-border payments do not occur in real time. Local regulations and the lack of a single overseeing body add complexity. Finally, the industry would need to achieve agreement on general governance, data standards and establish appropriate disclosures to support transparency.