Q&A with Deutsche Bank’s Andrew Reid in The Paypers B2B Fintech guide 2016

In a Q&A for The Paypers, Andrew Reid, Managing Director and Head of Cash Management Corporates, GTB, explained how now was the time for the B2B payments space to have the same level of transformation and convenience that the Retail banking space has experienced in recent times.

ReidAndrew Reid - 065 argued that banks and corporates should be investing in real-time payments, with benefits stemming from the capability for executing time-sensitive transactions – such as High-Value, critical vendor or M&A-related payments – while receiving close-to-immediate proof of execution instead of waiting for the specific entry to be documented by standard intraday reporting. To be involved in these developments, Deutsche Bank and others are developing a Pan-European Instant Payment Solution.

Reid also talked about the benefits and challenges of implementing pay-on-behalf-of/collect-on-behalf-of structures, and also discussed the main friction points in B2B cross-border payments that will be disappearing in the next five years.

Further discussion revolved around bank core-competencies that foster innovation and growth through fintech partnerships in the B2B payments space, with Reid arguing that collaboration was key between banks and new incumbents.

Reid explained: “By offering the strength of their established reputation, global infrastructure, existing client-base and expertise regarding risk, regulation and treasury needs, banks can support fintech growth, bring new products to market through such strategic alliances, and successfully scale-up new offerings.”

The Q&A finished with a question on blockchain technology, with Reid highlighting how Deutsche Bank is an initial driving member of blockchain consortium R3 CEV, and participated in trials of five distinct blockchain technologies with other member banks.

The full Q&A can be found here.

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