Welcome to NEACH’s November 2024 Executive Summary. In this issue, financial services leaders share their outlook on the coming year, with collaboration and relationships emerging as key themes.
On the payments front, PYMNTS, in collaboration with Ingo Payments, released the results of a new study titled “How Instant Pay is Becoming the Standard for Ad Hoc Payments.” According to the survey, 92% of senders see instant payments as the future of ad hoc payments. Additionally, Nacha’s Payments Innovation Alliance is launching a new project team to explore the concept of “Pay by Bank.” They are inviting participation from all existing and new members.
Finally, NEACH, in collaboration with its Payments Operations and Strategy Subcommittee, recently released a new white paper titled "Payments Operations: The Next Generation through the Lens of Staffing and Talent." The paper includes insights from industry leaders, case studies, and the latest research.
Read on to learn more.
Top News Headlines
Financial Services Leaders Share Their Visions for 2025
According to PYMNTS’ new eBook, The New Value Equation: 11 Financial Services Leaders Share Their Vision for 2025, “the financial services industry stands at a crossroads where technology, customer expectations, and market pressures intersect, creating both challenges and opportunities.” The leaders interviewed strongly agreed: “Success will come not just from processing transactions or providing basic services but from delivering meaningful value that transforms everyday interactions into deeper, more profitable relationships.”
Mike Minelli, Banyon’s Chief Commercial Officer, underscores this sentiment with his emphasis on collaboration: “2025 will be the year when payment industry players will stand out due to the ability to deliver value to their partners for marketing, fraud, risk, and operations. The key word is collaboration. Retailers, manufacturers, banks, FinTechs, and technology platforms must work together to drive growth — a rising tide lifts all boats!”
Interviews with eleven industry leaders revealed several critical themes for the year ahead:
- Artificial intelligence (AI) and machine learning are essential, not optional, tools for future success.
- The emphasis on embedded solutions and seamless integration is paramount.
- There’s a growing awareness that data isn’t just about transactions—it’s about relationships.
- Security and trust remain foundational, but we must balance them with user experience.
- There’s a clear focus on democratizing access to advanced financial technology.
“My advice for companies aiming to grow revenue is to simplify how they operate and embrace a customer-first approach,” says Alice Katwan, President of Revenue, SOVOS. “Customers come to you to solve problems, not to replace one issue with another. Regardless of how great your product or service may be, customers have limits on what they'll tolerate before turning to a competitor.”
If you would like more information on what these industry leaders said about the year ahead, you can download the eBook here.
Instant Payments
How Instant Pay is Becoming the Standard for Ad Hoc Payments
PYMNTS, in collaboration with Ingo Payments, released the results of a new study, How Instant Pay is Becoming the Standard for Ad Hoc Payments. Ad hoc payments, as referenced in this study, are one-off payments made specifically to the gig economy and the gaming, property management, hospitality, and transportation industries. Based on a survey of 200 senders who generate at least $50 million in annual revenue across the U.S., key findings excerpted from the report include:
- 92% of senders see instant payments as the future of ad hoc payments
- 50% of instant ad hoc payments to businesses were made via push-to-debit card
- 42% of senders consider vendors and customer-relationship retention to be the most important reason to offer instant payments
The study found that senders were increasingly concerned about the cost of integrating instant payments last year. One in five reported this barrier, an 11% increase from September 2023. Meanwhile, 55% of senders said they plan to partner with third parties to increase integration and improve their instant payments innovation.
To learn more, download the study here.
Nacha
Nacha’s Payments Innovation Alliance Leads Industry Efforts to Define and Shape the Future of Pay by Bank
In other news, Nacha’s Payments Innovation Alliance, a membership program that brings together diverse global stakeholders seeking to transform the payments industry, will address the question “What is Pay by Bank?” through a new project team open to all existing and new Alliance members, according to an Oct. 31 news release.
“Pay by Bank has become a common industry term of art over the past several years, but there is not yet industry consensus on what it means,” Michael Herd, Executive Vice President of ACH Network Administration at Nacha, said in the release. “Nacha’s Payments Innovation Alliance is well-positioned to take on this question and to identify any operational, risk, and educational issues associated with Pay by Bank payments that also should be addressed.”
Nacha’s latest research shows that although just 13% of consumers understand the term “Pay by Bank," over half use it once they understand it. Among 22-to-34-year-olds, nearly a quarter know the term, and 72% report using it when explained, highlighting a solid opportunity to raise awareness, especially with younger consumers.
To learn more about the Alliance, click here.
NEACH
NEACH, in collaboration with its Payments Operations and Strategy Subcommittee, recently released a new white paper, Payments Operations: The Next Generation through the Lens of Staffing and Talent. Drawing on generational workforce research, insights from industry leaders, and real-world case studies, this white paper explores generational differences in the workplace, how to foster cross-generational collaboration, traits to look for in new hires, and more. The paper concludes with several considerations and recommendations for financial institutions looking to maximize the opportunities and minimize the obstacles inherent in a multi-generational workforce.
You can download this free resource here.
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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.
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