Welcome to Innovating Payments Top 3 News Headlines for the Week of Oct. 15, 2023. The U.S. Faster Payments (FPC) Council announced on Oct. 11 the release of Guideline.01: Operational Considerations for Instant Payments Receive-Side Primer in its Faster Payments Knowledge Center. The primer provides a springboard for financial institutions to plan the journey to faster payments adoption by providing high-level insights into various areas for consideration. In other news, a report from FIS found that 56% of FinTechs are experiencing greater risk than in the past. Finally, The Financial Brand shares steps the industry can take to protect the industry from fraud versus scams.
Read on to learn more.
1. U.S. Faster Payments Council Releases First Operational Considerations for Instant Payments Guideline (U.S. Faster Payments Council)
The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, today published Guideline.01: Operational Considerations for Instant Payments Receive-Side Primer in its Faster Payments Knowledge Center. The FPC Operational Considerations for Instant & Immediate Payments Work Group (OCWG), sponsored by Form3, the cloud-native account-to-account platform, developed this first guideline as a resource for financial institutions supporting instant payment rails. (Read more.)
2. Over Half of FinTechs Say They Face More Risk Than Before (Fintech)
More than 50% of FinTechs believe they are facing an increased amount of risk, according to new research, as emerging technologies continue to affect the way the sector evolves. A report from FIS – which has surveyed a broad range of over 2,000 business leaders from nine separate countries – found that 56% of FinTechs are experiencing greater risk now than they were previously, seven percentage points higher than the cross-industry average. (Read more.)
3. Protecting P2P Users: Frauds Vs. Scams & How Banks Can Tackle Both (The Financial Brand)
Financial institutions that offer person-to-person payments face two challenges. One is the very occurrence of fraud and scams. Fraud and scams hurt consumers - and, by reputation, the institutions - and the industry can take steps to protect consumers from both. The other challenge concerns perception. It is not unusual for fraud and scams to be conflated. But they are not the same, and the solutions are different. It's important to differentiate between "fraud" and "scam" as used in the digital payments arena. (Read more.)
What operational considerations for instant payments keep you up at night? How does the increase in FinTech risk impact your financial institution? What steps are you taking to educate and protect P2P users from fraud and scams?
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.
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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.