Balancing the risks and rewards
In recent years, countries around the world have been moving to upgrade their aging legacy systems to enable faster payments processing, real-time settlement, and data-rich transactions. In 2016, Canada embarked on this multi-year path, which includes plans to build a new core clearing and settlement system, establish a real-time payments capability, enhance automated funds transfers, align with global regulatory standards, and modernize the requirements framework. The end-state envisioned by Payments Canada is the creation of a truly modern payments system that is fast, flexible, secure, promotes innovation, and strengthens Canada’s competitive position.
Our report shows that this transition presents new and potentially lucrative business opportunities to Canadian financial institutions, but also several fundamental risks. Canada faces a unique challenge in its move towards payments modernization due to the size, scale, and scope of the initiative. This report highlights lessons learned in other jurisdictions that will help guide Canadian financial institutions in assessing their preparedness. It also covers risk mitigation, specifically as it relates to fraud and treasury.
To learn more about the risks and rewards of going real-time with payments, read Payments modernization: Balancing the risks and rewards.