Welcome to Innovating Payments Top 3 News Headlines for the Week of May 26. In this issue, real-time payments continue to transform financial transactions by offering unparalleled speed and convenience. However, a gap remains, as most financial institutions support receiving instant payments while fewer enable sending them, which limits the full potential of these networks and leaves customer expectations unmet.
Meanwhile, major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are engaged in early discussions to launch a joint stablecoin venture in response to growing competition from the cryptocurrency industry. The proposed model would enable both large and regional banks to utilize the stablecoin.
Finally, Javelin Strategy & Research released a report that found while many financial institutions have introduced security centers in mobile banking apps to keep customers informed about the latest threats, there is still room for improvement.
Read on to learn more.
1. The Real-Time Leap: Closing the Gap Between Receiving and Sending (PYMNTS)
The rapid rise of real-time payments is transforming the way consumers and businesses move money, offering unprecedented speed and convenience. Nevertheless, a significant disconnect remains: While most financial institutions (FIs) now support the ability to receive real-time payments, far fewer have enabled customers to send funds instantly. This imbalance limits the full potential of real-time networks and leaves customer expectations unmet. (Read more.)
2. Implications of Big Banks Exploring Joint Stablecoin Ventures (Tekedia)
Major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are in early discussions to launch a joint stablecoin venture to counter growing competition from the cryptocurrency industry. The talks involve bank-owned payment companies like Early Warning Services (operator of Zelle) and The Clearing House (a real-time payments network). The initiative aims to protect banks' payment and deposit bases, especially against potential moves by big tech or retailers into digital currencies. A proposed model would allow both large and regional banks to use the stablecoin. (Read more.)
3. Telling the Security Story: How FIs Can Leverage Security Centers to Fight Fraud (Payments Journal)
In response to fraud attacks that increasingly target individuals, there have been continued calls to ramp up consumer education. Many financial institutions have introduced security centers in mobile banking apps that are designed to keep customers informed on the latest threats. Although this is a positive step, as Lea Nonninger, Digital Banking Analyst with Javelin Strategy & Research, found in the report Security Centers in Digital Banking: How to Tell an Empowering Story of Prevention, Detection, and Resolution, many security centers still have room to improve. (Read more.)
Do you agree that the current gap between sending and receiving real-time payments limits their full potential? What are the implications of major U.S. banks exploring joint ventures in stablecoins? What improvements can your financial institution's security centers in mobile banking applications implement?
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.
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AUTHOR: Joe Casali, AAP, AFPP, APRP
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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