Welcome to the Top 3 Innovating Payments News Headlines for the Week of February 16.
This issue explores new research on how mid-sized and large firms are integrating financial services into their platforms. The research shows that success depends not just on adoption rates but on how firms evaluate value and choose implementation partners.
Additionally, a new report from Javelin Strategy & Research, Foolproof Payments: How AI Is Revolutionizing Payment Fraud, explores how to create payments that are both fast and secure in the era of artificial intelligence.
Finally, JPMorgan Chase and Nacha are partnering to integrate Nacha's peer-to-peer payment information network into the bank's blockchain-based data-sharing network. Through the integration, financial firms using JPMorgan's system can verify U.S. account holders' information in real time using multiple trusted sources within Nacha's network.
Read on to learn more.
1. Firms Report Improved Financial Performance Linked to Use of Embedded Finance (PYMNTS)
Embedded finance has evolved beyond a supplementary revenue channel to become the deciding factor between companies that forge lasting customer relationships and those that fall behind, according to new research examining how mid-sized and large firms are deploying financial services within their platforms. The study, "Embedded Finance as a Strategic Initiative," conducted by PYMNTS Intelligence in collaboration with Green Dot, surveyed 515 senior leaders across banking, FinTech, HR software, retail, and technology sectors. The research reveals that while nearly all companies now offer at least one embedded finance capability, success hinges not on adoption rates but on how firms measure value and select implementation partners. (Read more.)
2. Fighting Fraud in the Era of Faster Payments (Payments Journal)
The Iron Triangle of Service suggests that a product can be good, fast, or cheap-but not all three. That adage has taken on new meaning in the world of instant payments, where speed has often come at the expense of fraud detection. Is it possible to deliver payments that are both fast and secure, or must financial institutions choose one over the other? A new report from Javelin Strategy & Research, Foolproof Payments: How AI Is Revolutionizing Payment Fraud, explores that question in the age of artificial intelligence. In the study, Jennifer Pitt, Senior Analyst of Fraud Management, examines where fraud prevention processes have fallen short and how banks can use AI to strengthen payment oversight. (Read more.)
3. JPMorgan, Nacha to Share Data via Blockchain (Banking Dive)
JPMorgan Chase and Nacha, the organization overseeing the ACH payment network, are partnering to integrate Nacha's peer-to-peer payment information network within the bank's blockchain-based data sharing network, Nacha said last week. Through the integration, financial firms using JPMorgan's system can verify U.S. account holders' information in real time using multiple trusted sources within Nacha's network, the organization said in a Feb. 5 press release. By integrating Nacha's Phixius network with JPMorgan's Kinexys Liink system, users can reduce payment errors, improve operational efficiency in international payments, and mitigate fraud risk, per the press release. (Read more.)
How is your financial institution leveraging AI to mitigate fraud? What other ways is your FI using AI?
Check back soon for our next issue, which will highlight the industry's most pressing and essential developments. In the meantime, visit us online at Innovating Payments.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy. For more information, visit neach.org.
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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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