Tag: Payments

4 Trends From Money 20/20 That Will Influence Your Bank

Money 20 20 Recap

Last week’s Money 20/20 conference in Las Vegas proved that it remains one of the best conferences for banks that are serious about innovation, particularly as it revolves around payments. The conference is big, the hallways are endless, everybody and their granddaughter is a speaker, the expo hall is ginormous, and the whole conference is almost unwieldy. However, despite these flaws, Money 20/20 is still a gathering that shapes our financial future. While the Libra folks were noticeably quiet and the regulators seemed less involved, there was still lots of action.

Changing Payments and Bank Strategy

Bank Strategy
BANK STRATEGY

One item that should be on every bank’s strategic horizon is how to adapt to the changing face of payments. If you are one of those bankers that say, “Cash won’t go away in my lifetime,” you could be right. However, we would posit that the sentiment is the wrong way to frame the challenge and the rationalization that you don’t have to worry about cash, checks and the payment channel will likely lead you to disaster. In this article, we highlight the newest data from the Fed and what it might mean for every community bank.

 

How P2P Will Fuel Checkless Banking

The Changing Face of The Checking Account

Take away checks from a checking account and what do you have left? What you have is a “core banking account” that is cheaper for banks to set up and less expensive to maintain. You also have a paradigm shift in product delivery that banks need to come to terms with in order to stay competitive. While the latest update by the Federal Reserve shows the number of checks processed last year fell 5.2%, banks should get ready for acceleration with the increase in person-to-person payments from the likes of Zelle and Venmo.

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.

Why Banks Need To Market With Amazon

Getting Bank Customers To Switch Cards

Two weeks ago Amazon introduced the Echo Look and yesterday; the Company introduced the Echo Show. These are second generation products to the Echo and Echo Dot which kicked off Amazon’s voice-enabled ordering wave. All these voice-enabled devices will serve to fuel the growing trend of users making purchases and interacting with Siri-type voice-enabled assistants. Amazon is starting to socialize these devices both of which serve to expand Amazon’s retail sales capabilities.

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.

 

Here Is a Winning Bank Payment Strategy

Bank Payment Strategy

Something might be getting lost in the payment debate among banks. At conferences and publications, most of the information targeted at banks is whether banks should go on Apple Pay or other payment platforms; should a bank get a mobile wallet; and, our favorite, can banks still win the payment game? The answers to those questions are: Yes, banks need to get on Apple Pay and all other payment platforms readily available. Yes, banks should support some mobile wallet in order to get their card in the payment stream.

The Messed Up State Of Bank Wires

Bank Payment Products

Last week we wrote a piece that the biggest threat facing banks is complacency around our traditional processes. Disruption threatens our industry at every turn and even within our industry there is a growing divide between large banks and community banks. Today, we highlight one such area as it an example of our point nicely and highlights the many problems that banks need to overcome in order to create a better process.

Why Community Banks Need To Stay In The Payment Game

Mobile Payments For Banks

Yesterday was the first anniversary of Apple Pay while the past 60 days saw the release of Android Pay and Samsung Pay. The strategic question comes up – which do you do if any? Before you answer that question ask yourself this one – how long do you want to be in business? Wait. Before you fire us off an angry email, we are not being flippant. It is important to understand your investment horizon, as if your bank plans on selling in the next five years, then why go through the cost and hassle of registering your cards on each platform.

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