The pitfalls of payments platforms that are “good enough”
Detailed Summary:
In this Finovate Podcast episode, host Greg Palmer interviews Rouzbeh Rotabi, Chief Revenue Officer at Qolo, about payment infrastructure modernization. Rotabi, with over 20 years of experience in fintech and payments, explains that banks face three main challenges: financial pressures to increase commercial deposits (especially following recent bank runs), infrastructure limitations of legacy systems, and the need to improve customer experience. He emphasizes that many financial institutions are reaching “terminal velocity” with their current technology, forcing them to hire additional staff and implement workarounds rather than adopting more scalable solutions.
The discussion highlights the false comfort of “good enough” payment systems in today’s competitive landscape. Rouzbeh advises financial executives to evaluate their infrastructure by examining how much “load weight” their current systems create—specifically, whether they’re continuously hiring more staff or consultants just to maintain existing systems. He recommends analyzing growth patterns over the past five years to determine if operational expenses are scaling disproportionately to business growth, and to gather direct customer feedback about their experiences with current platforms.
When implementing new payment technologies, Rotabi explains the trade-off between speed to market and maintaining control. He notes that additive solutions like Qolo’s virtual account management can integrate with existing cores without complete replacement, making implementation faster and less disruptive. The conversation distinguishes between consumer and commercial payment systems, suggesting that commercial implementations offer more flexibility and tolerance for minor disruptions compared to consumer-facing solutions where even small errors can significantly impact customer trust. Ultimately, the podcast emphasizes that financial institutions must modernize their payment infrastructure to meet evolving customer expectations and remain competitive.
More info:
Qolo: https://qolo.io/ ; https://www.linkedin.com/company/qolo/
Rouzbeh Rotabi: https://www.linkedin.com/in/rouzbehrotabi/
Greg Palmer: https://www.linkedin.com/in/gregbpalmer/
Finovate: https://www.finovate.com; https://www.linkedin.com/company/finovate-conference-series/
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