Trends & Research

Trends & Research

Access the power of data and objective insight. Data from various sources, including NEACH surveys and member interviews, is compiled and made available as white papers, case studies, articles, benchmarking, and industry reports to provide a snapshot of both the current and future payments landscape. 

Published on Wednesday, December 16, 2020

Breaking Down Your Payments Strategy Questions - What about faster payments? How do they tie into our payments strategy?

Many FIs are questioning how the faster payments movement factors into their existing payments strategies. The reality is that we’re in an immediate gratification environment. When your customers or members can order an item and have it delivered the next day even during the course of a global pandemic, you know that the market has driven expectations to the next level. Just look at the growth in P2P networks like Zelle where payment transaction volume was up 63 percent in the first half of 2020.

But how an FI implements its faster payments plan as part of its broader payments and business strategy ties back to the individual institution. Your faster payments approach should align with the elements of a payments strategy overall and take into account the solutions available to you, what use cases you are solving for in support of your customers, and how the solution fits with your organization’s technology and culture.

For example, with The Clearing House’s RTP® Network making headway and an increasing number of banks coming on board—they report a pipeline of more than 150 FIs with current volumes reaching 56 percent of all U.S. DDAs—real-time payments are slowly becoming the new norm. As part of your strategic planning, you want to be asking yourselves, am I going to wait or am I going to look at RTP?

Either way, beginning an exploration of what it takes to get online with real-time payments will help your institution be more knowledgeable in setting a strategy that aligns with your goals and objectives. First up, technology-wise, you can dive into what your infrastructure allows you to do with real-time payments, what is out there that you may need to integrate in, and what front-end solutions support your customers. The majority of core providers already have relationships with TCH and will be building onramps to FedNow, so talking to them can guide you in making the strategic call on how your organization will handle faster payments.

Our “Building Blocks of Faster Payments” series helps you prep for where you want to take your faster payments strategy. We encourage you to set your foundation today to prepare for where the industry will head in the not-so-distant future.

 

Breaking Down Your Payments Strategy Questions:

 

.....

AUTHOR: Mark J. Dixon, AAP, APRP, NCP
Director, Payments Innovation

As the Director of Payments Innovation for NEACH, Mark focuses on exploring innovative solutions and technologies
that will help position members for success, both now and in the future. Connect with Mark to read more of his blogs, articles, and posts.

 

 

Rate this article:
No rating
Comments (0)Number of views (674)

Author: Meagan Norlund

Categories: Articles

Tags:

Print

Theme picker