Elliot Smith (Kiwibank)
Credit: Granted
Kiwibank is investing to deliver real-time experiences for customers, forging a strategic partnership with digital payment software firm ACI Worldwide.
The agreement will see Miami-based ACI provide and operate Kiwibank’s newly installed, full payment capabilities hub, a secure software-as-a-service (SaaS) system hosted in the Azure cloud of Microsoft.
The announcement comes as New Zealand’s banking and finance sectors are accelerating their transformation to become fully digital businesses and prepare for industry transformation.
“Because of the rapid change in technology, many consumers now expect that almost everything will be available immediately and the payment system is no exception,” said Elliot Smith, chief product and strategy officer at Kiwibank. “The nature of cloud technology means we can do things faster and better, and we can deliver the simple and seamless experiences customers demand today.”
Kiwibank has been gradually rebuilding its digital capabilities over the past few years, avoiding big bang approaches, focusing on the customer and launching ServiceNow, The ACI deal is the latest piece of the puzzle to be bottomed out.
The business benefits of real-time payments are enormous, Smith says, including improved cash flow management and improved liquidity.
Moreover, the digital and real-time payment market is rapidly evolving with new, more sophisticated customers, a growing range of form factors and payment types and more active and dedicated regulators.
“This improvement will especially affect small traders who may be accustomed to waiting days for their settlement,” Smith said.
Using Nasdaq -listed ACI technology on Azure, Kiwibank will be able to deliver new products and services to market faster, add new payment types quickly and economically to its existing core infrastructure and fast scale to meet customer needs.
It also prepared and equipped Kiwibank for upcoming changes requiring New Zealand’s retail payment system to operate seven days a week, 365 days a year. Currently, settlements between banks occur at regular intervals between 9am and midnight on business days only.
Kiwibank also gained access to scale -up technical resources to help lower the cost of operating bulk – and growing – payment services, including associated back -office functions and any overlapping IT infrastructures.
“This relationship with ACI supports Kiwibank’s long -term strategies for efficiently addressing future repayment needs,” Smith said.
Kiwibank is a global role model for cloud-native, real-time experience, said Alessandro Silva, head of international markets at ACI Worldwide.
“This is a great example of how ACI’s flexibility, technology, and global expertise can help our partners meet the growing needs of their customers and their markets,” he said.
ACI’s SaaS solution is now running across Asia Pacific, said Leslie Choo, managing director, APAC, ACI Worldwide.
“We are excited for what flexibility and operating model this will have for Kiwibank and other financial institutions across the region.”
Tags bankingSoftware as a servicePaymentskiwibankACI Worldwidesettlement systemsSaaS
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