Tag: ACH

5 Trends Bankers Need To Know From The Fed’s New Payment Study

RETHINKING PAYMENTS
RETHINKING PAYMENTS

Last month, the Federal Reserve released its 7th, tri-annual U.S. payments study, and, as usual, it had some eye-opening trends that all banks need to consider for their long-term strategic planning. For example, while consumers have always said they preferred debit cards over cash, last year was the first year in US history where consumers used their debit cards (28% of all transactions) more than they used cash (26% of all transactions).

Marketing Same-Day ACH for Fun, Profit, and Deposits

Same Day ACH

Since September of 2016, bank customers have had access to same-day ACH credits. When same-day ACH was expanded to include debit transactions four months ago, no surprise, the functionality took off. Same-day ACH grew 138% from Q3 to Q4. The funny part is that, despite its proven popularity, few bank are marketing and many customers don’t know that the functionality is available to them. The same banks that complain and worry about competition from fintech disruptors are slow to adopt and market ACH.

Marketing Same-Day ACH for Fun, Profit, and Deposits

Same Day ACH

Since September of 2016, bank customers have had access to same-day ACH credits. When same-day ACH was expanded to include debit transactions four months ago, no surprise, the functionality took off. Same-day ACH grew 138% from Q3 to Q4. The funny part is that, despite its proven popularity, few bank are marketing and many customers don’t know that the functionality is available to them. The same banks that complain and worry about competition from fintech disruptors are slow to adopt and market ACH.

Promoting Same Day ACH To Businesses

Same Day ACH

Data this week from the electronic payment association, NACHA, shows that the new same-day payment functionality totaled $3.8mm transactions worth almost $5B for the first full month of availability. That is a good start, and while some community banks are not taking advantage of the functionality, an estimated 95% will be in the next couple of months. In this post, we take a quick look at the progress that banks are making and point out one area to focus on to get a jump on the large national banks.

 

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