Welcome to NEACH's Innovating Payments Top 3 News Headlines for the week of April 16, 2023. With the FedNow launch just three months away, the Fed states that collaboration will be critical in the months ahead. "Partnerships are key," Federal Reserve SVP, Head of Payments Industry Relations Connie Theien told PYMENTS, "as FIs identify the critical processors and service providers they need to fill the gaps in legacy systems and back-office functionality in order to embrace faster payments."
In other news, according to a U.S. Bank survey, businesses favor real-time payments. In payment transformation initiatives planned for the year ahead, 53% want to improve vendor and customer payment experiences, 48% want to increase the efficiency of front-office payment transactions, and 47% want to create a B2B payment experience similar to person-to-person consumer payments. Also making headlines: Banks face increasing consumer demands for personalized advice and tools to manage their finances amid economic challenges.
Read on to learn more.
1. In the News: Fed Says FedNowSM Early Adopters Pave Path to Instant Payments (FedNow Explorer)
Three months until the U.S. payments ecosystem changes forever. In July, the long-awaited FedNow Service launches, and its real-time rail will speed up money movement between accounts, transform bill payments and bring instant payments to a variety of use cases yet to be imagined. As 1st Source Bank Vice President of Cards, Payments & Strategy Jim Hunt; Finzly founder and CEO Booshan Rengachari; and Federal Reserve SVP, Head of Payments Industry Relations Connie Theien told PYMNTS, collaboration has been, and will be, critical in the months and years ahead. (Read more.)
2. The Clearing House's RTP Or FedNow For Instant Payments? Users Want Both (Forbes)
Businesses appear to be in favor of real-time payments, according to a survey by U.S. Bank, and a better payment experience is one of the top drivers. And they want to be able to choose which rails to use. "We are building intelligent routing," said Anu Somani head of global payables & embedded payments at the bank. "Clients can come to us for a one-stop bank and we can connect to any instant payment rail that meets their business goals. (Read more.)
3. Digital Platforms Give Banks New Testing Ground for Personalized Experiences (PYMNTS)
Banks face increasing consumer demands for personalized advice and tools to manage their finances amid economic challenges. Just 44% of customers believe their banks support them during difficult economic times, and 46% want personalized help in avoiding fees. Banks delivering personalized banking services must also prioritize security, with customers citing fraud protection as a critical factor in digital banking satisfaction. (Read more.)
What steps is your financial institution taking to identify the critical processors and service providers it needs to fill the gaps in legacy systems and back-office functionality in order to embrace faster payments? How does your financial institution plan to meet businesses' increasing demands for real-time payments? Finally, consumers are demanding greater personalization from their financial institutions. How will your financial institution meet this need?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.