Welcome to "Innovating Payments Top Three News Headlines." This issue's top headline highlights the Federal Reserve's paper, "Community Bank Access to Innovation through Partnerships." The paper explores the benefits and risks of financial institution (FI)/fintech partnerships and key considerations for engaging in these partnerships. And that's not all. Mastercard posits that with the rapid uptick of digital commerce, faster payments are set to become "the new normal" for small and medium-sized businesses. Finally, check out the PaymentsJournal recent podcast, which explores the current trends in the financial services industry and how traditional FIs can use these trends to remain relevant in today's digital-first economy.
1. Fed Issues Paper on Bank/Fintech Partnerships; Bowman Discusses Innovation (ABA Banking Journal)
The Federal Reserve today published a paper highlighting how community banks can partner effectively with fintech companies. The paper is intended to be a resource for community banks as they plan their innovation journeys. Among other things, it provides an overview of the banking and fintech landscape, discusses benefits and risks of bank/fintech partnerships and key considerations for engaging in these partnerships. Read more.
2. Mastercard: With Digital Commerce 'The New Normal' For SMBs, Focus Shifts to Faster Payments (PYMNTS.com)
The resilience of Main Street small and medium-sized businesses (SMBs) over the past 18 months has been remarkable, as small businesses have not only survived but adapted, reinvented and thrived, thanks in large part to their embrace of digital commerce. But with the rapid uptake of online selling platforms by SMBs largely in place, Mastercard Global Senior Vice President of Small Business Andrea Gilman told PYMNTS' Karen Webster the next phase is all about getting SMBs paid faster and helping them address their notorious cash flow problem. Read more.
3. Traditional Banks are Getting a Digital Makeover (PaymentsJournal)
Consumer payments are becoming more and more invisible. People can now do things like order food and have it delivered without ever pulling out cash or a credit or debit card. As more fintechs pop up with services that offer frictionless payments for customers, banks and issuers struggle to remain in the game. To further discuss the current trends in the banking industry and how traditional banks can use these trends to remain relevant in an industry full of new technology, PaymentsJournal sat down with Jens Audenaert, SVP/GM of Payments at Diebold Nixdorf, and Tim Sloane, VP of Payments Innovation at Mercator Advisory Group. Read More.
What is your experience with FI/FinTech partnerships? Is faster payments for SMBs an untapped market waiting to be explored? What steps is your FI taking to remain relevant in an industry full of new technology?
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.
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.