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Finastra, a global provider of financial software applications and marketplaces, announced it has been selected by LGT to implement instant payment services in Austria and Liechtenstein, with plans to expand to other markets.
LGT will deploy Finastra’s payment hub using a model bank implementation approach to expedite its compliance with the EU instant payments regulatory timeline. By separating payment processing from its core banking platform and utilising Finastra’s future-proof solution, the bank will be positioned to handle the expected increase in instant payment volumes while ensuring 24/7 service availability.
“Payments are becoming increasingly sophisticated, and it is crucial that we continue to evolve to meet our customers’ business needs and regulatory requirements,” said Bernhard Strauch, Head Securities & Payments Services at LGT Financial Services Ltd. “We selected Finastra’s payment hub as it supports multiple payment types within one standalone system, while enabling seamless integrations of new services as and when we need them. With Finastra’s solution and industry expertise, we will gain the necessary agility required to keep pace with regulatory and industry demands.”
Finastra’s payment hub offers banks a future-proof, scalable, and resilient payment processing system. Financial institutions can meet current regulatory requirements, respond faster to future changes, and provide personalised services to their customers.
Combined with a model bank and best practice implementation, the solution will enable LGT to meet the fast-approaching EU regulatory deadline for instant payments swiftly. Once in place, the bank can easily adopt other schemes, such as SIC5 IP in Switzerland, and pursue ongoing modernisation, innovation, and growth.
LGT also utilises Finastra Kondor, a bank treasury management system, and Finastra’s Total Messaging platform.
“Many institutions need to urgently assess whether their current payment processing environment can support the expected increase in volumes and the need to operate 24/7,” said Neil Macro, Vice President, Managing Director – EMEA mid-markets, Payments at Finastra. “This has been a huge priority for us at Finastra; ensuring that banks are fit for the future with our sophisticated payment hubs, including with the option to pay as you grow. Underpinned by open architecture, APIs, and our partner ecosystem, our solutions enable banks like LGT to innovate at speed, boost risk management and deliver enhanced services to end-users. For example, the bank can seamlessly implement new functionality to strengthen its instant payments offering, such as Verification of Payee and real-time sanctions screening. We look forward to supporting LGT on further developing its payments services.”
