News & Views - Savantor

Prevailing Trends

Sunday, 16 September 2018

There are a number of trends prevalent across the payments market today which can be seen to be indicative of how the payments landscape has evolved during 2018.

The latest annual payments survey released by the British Retail Consortium shows that for the first time ever, cards now account for over three quarters (76%) of the value of retail purchases in the UK. This increase has been encouraged by the popularity of contactless as a means of payment for small value purchases.

Alongside this cash has continued to decrease in popularity, both as a percentage of the volume of retail transactions (down 0.5%) and value of retail sales (down 1.2%), where it now accounts for only 22% of retail transaction value.

At the same time, the increase in online and mobile shopping is continuing to have an impact on physical bank branches, with an announcement by RBS this month of the forthcoming closure of another 54 branches in England and Wales in January with the loss of 258 jobs. Since 2014, branch transactions across RBS in England and Wales are apparently down 30%, whilst there has been a 53% increase in the number of customers using mobile banking during the same period.

However, the trend of branch closures is not limited to the UK; the latest figures from the European Banking Federation show an ongoing decline in branches across the region. In its annual report the EBF reports that European banks closed almost 6000 branches in 2017, and that by the end of 2017, European banks employed 40,000 staff fewer than in 2016 and the least since the ECB began its data series in 1997.

The fall in use of cash can also be seen to have had an impact on the availability of free-to-use ATM’s. Apparently, according to Link, more than 250 free-to-use cash machines are being shut down a month as operators close down unprofitable ones. Whilst there are 53,000 free-to-use machines in the UK, the number is shrinking at a record rate partly as a result of people using less cash and the demand for cash withdrawals falling.

Although Link has set up "specific arrangements” to protect free-to-use ATMs more than 1km away from consumers’ next nearest free-to-use ATM, apparently 76 of these protected cash machines closed between January and July. As a result the Payment Systems Regulator has expressed concern and is ‘taking action’ to ensure Link meets its commitments.

Success in one area of payments (use of cards; contactless) inevitably does not come without a corresponding negative impact on another area – but that is the process of evolution.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Complex Multi-Country Migration

"This complex migration, undertaken simultaneously in Spain and Portugal, has been a complete success. Savantor has provided us with excellent support for over 3 years, both in the original business transformation programme and now this double migration. We value their open and honest approach to business, and of course the expertise that they bring."

Ricardo Gomez, Director, Operations & Technology - WiZink Bank – Spain & Portugal

Complex Cards Business Transformation

"This was a major business transformation that required us to build an excellent team made up of internal bank specialists, supported by external card business, technical and operations expertise. Savantor provided specialists from the local market and with international experience to fill a variety of important roles. The Savantor resourcing team are professional, reliable and good people to work with."

Ricardo Gomez, Director - Operations & Technology - WiZink Bank - Spain

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

Acquirer Specialist Support

"OP-Pohjola Group has used Savantors help in numerous different specialist projects differing from risk assessment to management tool creation to transaction analysis. We have been very satisfied by the quality of the service provided by Savantor's experts."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

New Fuel Card Guidelines

"Savantor successfully assisted Clear2Pay by providing specialist EMV expertise."

Marie Costers, General Manager - Clear2Pay Open Test Solutions

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Credit Card Migration and Operational Support

"The bank has undergone significant transformation of its card business on both the issuing and acquiring sides. One business partner we have looked to for support in the areas of strategy, major project leadership, management analysis and ongoing business support is Savantor. The Savantor team has contributed to our success as we have leveraged their deep industry knowledge and broad range of operational skills."

Sean Sheehan, Service Management Director - Bank of Ireland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.