The global provider of financial software applications and marketplaces, Finastra, has partnered with LGT – the world’s largest royal family-owned private banking and asset management group – to deliver the bank a solution to fast-track compliance with the EU instant payments regulation.
By leveraging Finastra’s payment hub, LGT will implement instant payment services to be rolled out across Austria and Liechtenstein, with other markets set to follow.
LGT: Leveraging Finastra to meet EU instant payments regulatory timeline
LGT plans to onboard Finastra’s payment hub using a model bank implementation approach. In this way, the leading private banking and asset management group will be able to accelerate its readiness to meet the EU’s instant payments regulatory timeline.
The EU’s new regulation was adopted in February this year, to make instant payments fully available in the euro currency to both consumers and businesses, across all EU and EEA countries.
Set to be implemented by January 9, 2025, the EU instant payment regulation is designed to improve the strategic autonomy of Europe’s economic and financial sectors, reducing what the bloc calls ‘excessive reliance’ on third-country financial institutions and infrastructures.
To complete the integration, LGT will uncouple payments processing from its core banking platforms before implementing Finastra’s future-proof solution.
By doing so, LGT says it will meet incoming regulations and anticipated growth in instant payment volumes while providing required 24/7 service availability.
Bernhard Strauch, Head of Securities & Payments Services at LGT Financial Services, says: “Payments are becoming increasingly sophisticated, and we must continue to evolve to meet our customers’ business needs and regulatory requirements.
“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.”
