Welcome to Innovating Payments Top 3 News Headlines for the Week of April 2, 2023. In this issue, FedNowSM Pilot Participant Blayne Furey of Freedom Bank offers a community bank's perspective on instant payments. Also in the news, 63 percent of consumers received a disbursement in the last year, and 68 percent want the choice to receive their disbursement payments instantly, an increase from the 47 percent that said the same in PYMNTS Disbursement Satisfaction Report 2022. And learn how AI is being used to combat financial crime in real-time payments.
Read on to learn more.
1. Blayne Furey of Freedom Bank Provides a Community Bank's Perspective on Instant Payments (FedNow.org)
Blayne Furey is Vice President and Management Information Systems Officer at Freedom Bank. Freedom Bank is a small and locally owned community bank. We recently spoke with Furey to hear more about her experience as a FedNowSM Pilot Program participant focused on establishing a foundation for instant payments at Freedom Bank. (Read more.)
2. Consumers Want Instant Payments – For Free (PYMNTS.com)
Consumers in the United States frequently receive disbursement payments, whether it be Social Security payments, tax refunds, insurance claim payouts or bonus payouts. In the last year, 63% of consumers received a disbursement - and 68% want the choice to receive their disbursement payment instantly, an increase from the 47% that said the same in our "Disbursement Satisfaction Report 2022." Some consumers would even be willing to pay a fee for an instant payment - especially those struggling financially. (Read more.)
3. Using AI to Combat Financial Crime in Real-Time Payments (Payments Journal)
In today's always-on, need-it-now world, both merchants and consumers alike are quickly relying on real-time payments as a preferred method of payment. This summer, real-time payment adoption is expected to soar when the U.S. Federal Reserve rolls out FedNow . . . However, the convenience of real-time payments doesn't come without risk. Faster payments provide easy access for bad actors to exploit for money laundering and financial crime. This poses a huge threat to fintechs, banks, and payment service providers (PSPs) that need to have strong anti-money laundering (AML) controls in place. (Read more.)
With the launch of FedNow just a few months away, how is your financial institution establishing a foundation for instant payments? Now more than ever, consumers receiving disbursements are asking for instant payments. How will your financial institution address this consumer preference? What plans does your organization have for mitigating instant payments fraud using artificial intelligence?
Check back soon for our next issue, highlighting 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.