Innovating Payments Top 3 News Headlines (June 26)

Welcome to Innovating Payments Top 3 News Headlines for the week of June 26. In this issue, bitcoin plummets to its lowest level in 18 months, rattling market players and raising questions about the future and stability of the cryptocurrency. In other news, with multiple real-time payment options available to financial institutions, learn why the most important determining factor is the customer's needs. And discover the connection between financial literacy and consumers' digital-first preferences.

Read on to learn more.

1. Crypto Funds Post Record $423 Million Outflows As Bitcoin Plunge Rattles Market (Forbes)
 

Investors piled out of cryptocurrency investment funds at a record pace last week after bitcoin plummeted to its lowest level in 18 months, crypto asset management firm CoinShares reported Monday, highlighting the bearishness that's come to a head this month as markets grapple with the Federal Reserve's reversal of pandemic-era stimulus measures. (Read more.)

2. Why Banks and Credit Unions Need Multiple Real-Time Payments Option (Payments Journal)

Real-time payments occupy a unique niche in the payments industry, both for its diversity and its rapid growth. The Clearing House RTP® network processes more than $16 billion each quarter, and Zelle processes more than $120 billion. . . and same-day Automated Clearing House (ACH) payments settle within hours. All these options have different use-case benefits . . . However, this level of choice can confuse financial institutions (FIs) as they discern where to place their bets based on what their customers will find most important. (Read more.)

3. PYMNTS Intelligence: How Financial Literacy Affects Consumers' Digital-First Banking Preferences (PYMNTS.com)

Digital banking has become the standard banking method over the past several years, largely due to the boost it received during the course of the pandemic as bank branches shut down or reduced their hours, forcing consumers to turn online to do their banking. More than 65% of Americans currently use digital banking, up from 61% in 2018, and this trend is expected to continue as services that were once available only in-branch, such as loan applications and account openings, move online. (Read more.)

What lessons can your financial institution take away from the recent plunge in bitcoin and other forms of cryptocurrency? Do you agree financial institutions need multiple payment rails to achieve true payments innovation; how does that impact your financial institution? As noted by PYMNTS, "One of the primary reasons for young people's affinity for digital banking may be surprising: a lack of financial literacy compared to their older peers." What plans does your financial institution have to increase financial literacy?

Check back soon for our next issue, which will again highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.

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