A new Federal Reserve study found that nearly half of American businesses surveyed said the pandemic is accelerating their plans for faster payments adoption, reports the FedNow(SM) Instant Payments Community. In fact, nine in 10 expect to be able to make and receive faster payments within three years, which coincides with the projected release of the FedNow Service in 2023. The Fed is also rolling out new details for the FedNow Service, touting it as a tool that business owners and individual consumers will want to use for instant bill pay. Also making headlines, research released by the Financial Brand reveals that customer expectations around what they want from their financial institutions has changed more in the past 18 months than at any time in the past.
Read on to learn more.
1. Study Reveals Pandemic is Spurring Business Demand for Faster Payments (FedPayments Improvement)
For much of 2020 and continuing through this year, businesses have responded to uncertainty with agility and innovative solutions, and payments improvement has been a primary area of focus. In a survey of more than 2,000 businesses sponsored by the Federal Reserve (PDF) during the COVID-19 pandemic, three of every four businesses now consider it important to offer faster payments. In fact, nine in 10 businesses expect to be able to make and receive faster payments within three years – including instant payments, a type of faster payment that credits the payee's deposit account within seconds of payment initiation. Read more.
2. FedNow Follows TCH to Enable Instant Bill Pay (PYMNTS.com)
The Federal Reserve is rolling out new details for the FedNow instant payments service scheduled to launch in 2023, touting it as a tool that businesses owners and individual consumers will want to use - and participating financial institutions will want to offer. On average, according to Fed material promoting FedNow, which is scheduled to launch in 2023, a consumer pays eight bills per month. Read more.
3. Banks with Strong Digital CX Generate More Profit Than Peers (The Financial Brand)
To succeed, financial institutions must build a customer experience ecosystem that includes a modern IT infrastructure, enhanced delivery options, an innovation culture, a foundation of data and analytics, and a workforce that is digital-ready. New research suggests that banks and credit unions are improving their IT infrastructure, yet still struggling with data and analytic solutions. Read more.
How has the pandemic accelerated your plans for faster payments adoption? Where does instant bill pay fit in your digital payments strategy? How is your financial institution enhancing the customer experience through digitization?
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.