Abu Dhabi Islamic Bank enhances cross-border payments

Category: Blockchain
Posted by Lea Hogg

Abu Dhabi Islamic Bank (ADIB) has embarked on a digital transformation journey by integrating the PS-PayHub platform, a product of Jordan-based financial solutions provider ProgressSoft. This strategic move is aimed at enhancing the bank’s cross-border payment services.

ADIB’s decision to partner with ProgressSoft aligns with its commitment to foster digital-first payment corridors. The integration of PS-PayHub has not only replaced the bank’s legacy systems but also empowered its customers with an improved ability to process transfers and handle cross-border remittances.

PS-PayHub, launched in 2015, is a centralized, multi-tenant platform equipped with correspondent management modules and embedded charges. It supports a diverse range of payment methods, including account-to-account, deferred, instant, domestic, and most importantly for ADIB, cross-border payments.

One of the key features of the platform is its ability to assist financial institutions in migrating to ISO 20022. This is achieved through its compliance with the Cross-Border Payments and Reporting Plus (CBPR+) initiative, a project of the Financial Stability Board (FSB) and the Committee on Payments and Market Infrastructures (CPMI). The initiative aims to enhance the speed and accuracy of cross-border payments.

PS-PayHub is compatible with various payment networks such as Swift Go, RTGS, AHC, Ripple, Visa, and Mastercard. This compatibility will enable ADIB to establish new payment corridors with correspondents via its back-end systems. It will also provide the bank with increased market agility through the introduction of additional payment services.

Revolutionizing cross-border payments

Fernando Plaza Lopez, Chief Digital Officer at ADIB, (pictured above), stated that the integration of PS-PayHub aligns with the bank’s focus on driving digital-first solutions throughout its operations. He believes that this robust new platform will revolutionize the way ADIB’s payment services function.

ADIB, with approximately AED 193 billion in assets, has a presence in six markets, including Egypt, Saudi Arabia, the UK, UAE, Qatar, and Iraq. This move towards digitization of its cross-border services with ProgressSoft is a testament to ADIB’s commitment to innovation and customer service. It also underscores the bank’s role as a leading player in the financial sector, continually adapting to the evolving needs of its customers in the digital age.

Cross border payment market

The cross-border payment services market is quite diverse and competitive, with several key players operating in different segments. According to McKinsey, the major players are listed below:

 

Category
Impact on cross border payment sector
(Source SiGMA)
Ecommerce Companies Giants like Amazon, Booking.com, Expedia, and Mercado Pago with a significant impact on cross-border payments.
Banks Traditional banking institutions that continue to play a crucial role in the market.
Mobile Payment Providers Companies like MTN Mobile and Terrapay specializing in mobile payment solutions.
VC Equity-Backed Companies Growth-stage companies that have received venture capital funding.
Public Companies (Non-Banks) Publicly traded companies offering cross-border payment services but not traditional banks.
Independently Owned Companies Companies operating independently without major external funding.
Crypto Companies Companies in the cryptocurrency sector offering cross-border payment solutions.
Private Equity-Backed Companies Companies backed by private equity investments.

 

 

The sector is continually evolving, with new players entering regularly and existing ones expanding their services. The trend towards digitalization and the increasing global interoperability of payment systems are driving growth and innovation in this space.

 

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