Communication– key success factor in payment transformation projects 

The importance of communication in payment transformation

Payment transformation projects operate in a highly sensitive environment. Payments are the foundation of banking, thus customer attention to changes is high, and any issues can quickly damage an institution’s reputation. Despite the perceived high standardization of payments, particularly in the SEPA region, a transformation always brings changes for both customers and payment-related staff. A proactive and well-structured communication strategy is, therefore, essential to ensure project success. We outline key aspects of communication strategy development and implementation to achieve successful project outcomes.

Developing a communication strategy

In many payment transformation projects, change management—including communication—is often underestimated. The primary focus is usually on the actual transformation, such as design, implementation, testing, and rollout. However, the following key challenges highlight why strong communication must always be a central component of any payment transformation program.

• Lead times for communication
Even minor changes in payment processing—such as handling special characters in account statements—can significantly impact customers, especially large corporate clients and affiliated banks. These changes may require adjustments in customers’ financial accounting systems and processes. Since banks cannot fully anticipate the downstream processes of their customers, sufficient lead time for communication before going live must be factored in.

• Audience-specific communication differences
Changes in payment processing do not always affect all customers equally—some changes may impact only a single customer, while others may impact a complete customer segment. Additionally, the level of detail required in communication varies by customer segment. Language preferences and available communication channels must also be considered to ensure effective reach.

• Choosing the right communication channel
Selecting the appropriate communication medium is crucial. Key considerations include:

• Which communication channels are available for each customer/stakeholder group?
• Will the selected communication method effectively reach the intended recipients?

Experience shows that, particularly in corporate banking, digital communication channels are not always fully established – making traditional methods – such as postal mail – sometimes necessary. Additionally, banks often face challenges in ensuring messages reach the right individuals within corporate clients due to limited visibility into their internal processes.

• Internal uncertainty among bank employees
Transformation projects impact both systems and bank employees. For instance, new roles may be created, existing responsibilities may change, and some positions may be phased out. These changes can create uncertainty and resistance, potentially jeopardizing project success. To mitigate these challenges, a proactive approach with open communication is essential.

Ensuring effective communication

The following strategies help overcome the above challenges and ensure effective communication.

• Prioritize communication from the start. Effective communication must be integrated into the transformation project from the beginning. Early identification of necessary changes and their communication needs enables comprehensive planning, thereby reducing the risk of last-minute go-live delays.

• Tailor messaging to each audience. Communication should be customized for each customer and stakeholder group, considering:

• relevant content
• appropriate level of detail
• familiar vocabulary
• most effective communication channel.

• Establish robust communication channels early. Effective communication channels cannot be established overnight. Whether using a central information platform or email notifications, maintaining an up-to-date customer relationship management (CRM) system with accurate contact information significantly enhances communication effectiveness.

• Pilot communication with key clients. Engaging pilot customers in early communication efforts helps refine messaging. Providing draft communication for their feedback allows unclear sections to be revised and additional information to be included. Additionally, frequently Asked Questions (FAQs) can help address common concerns.

• Engage internal teams early. Involving all relevant departments in communication efforts fosters transparency and ensures a smooth transition. Highlighting the benefits of transformation—such as new career opportunities—can increase acceptance. If relevant, HR should be included in communication planning to manage personnel changes effectively.

Conclusion

A strategic communication approach is not just a component of a successful payment transformation—it is the foundation for smooth implementation, ensuring trust, stability, and a positive industry reputation. By proactively addressing communication challenges and applying best practices, banks can achieve seamless transformations that meet stakeholder expectations.

Capco has extensive experience in designing and executing communication strategies for payment transformations. In addition to preparatory communication, this includes ad-hoc messaging to address customer enquiries across various segments.