The report also examined how the relationship between regulation and innovation can challenge banks’ capacity to undertake customer-centric innovation. Partly as a result of the Eurozone debt crisis, European banks are complying faster than originally expected with the Basel III objectives, but as a result they have less capacity to focus on innovation.
“Regulation must not be created in regional isolation," added Lassignardie "Its central goal needs to drive innovation forward, and deliver customer benefits that push industry boundaries."
The report also found that while the volume on non-cash payments remains concentrated in developed markets, Russia and China saw payment volume increases of more than 30 percent, while Brazil has become the third-largest payment market in the world, after the U.S. and the Eurozone. India’s payment volume grew at 10 percent and has great potential for future growth, though is not at the level as its BRIC counterparts. As such, the report colluded that when it comes to payments, the four countries should be viewed differently, rather than as one entity.
The World Payments Report 2012 is an annual report which examines the latest developments in the global payments landscape, including payments volume trends, payment instruments (such as cards and checks), key regulatory initiatives and their impact on strategic considerations and options for banks.