October 29, 2019
CHARLOTTE, October 29, 2019—A large majority of U.S.-based financial institutions (FIs) indicate real-time payments (RTP) is a high priority in 2020, according to a new study from Levvel Research. Consequently, 74% are now in progress with or considering RTP for at least one of their customer segments to meet growing demand and gain a competitive advantage. However, the research also reveals a gap between strategy and execution as many institutions have not determined how to make RTP a reality and thus risk missing the opportunities from RTP innovation. Other key findings from the research include:
Large banks lead in RTP implementation, and most indicate they have a clear strategy for productizing RTP. Opportunity exists for banks to offer RTP as part of an actionable strategy to transform the customer experience, rather than simply just another payment option. Among smaller FIs (e.g., community banks, regional banks, and credit unions), RTP is less prevalent, and these institutions are faced with developing an RTP strategy as they look to address the challenges and constraints of limited technology and resources.
Levvel believes that in developing an effective RTP strategy, FIs of all sizes must identify applicable use cases for different customer segments, with specific strategies for targeting consumer/retail, small business, and commercial customers. Additionally, factors such as simplicity, resources, third-party relationships, and technical design should be addressed for each customer segment.
“The reality is that Real-Time Payments are here,” says Kathleen McDowell, Senior Director of Financial Services and Payments at Levvel. “The technology is available, and customer demand is undeniable. FIs are realizing that to maintain customer satisfaction, reduce attrition, and stay competitive, they absolutely need an RTP strategy.”
The Levvel Research study, conducted in July and August of 2019, examines the RTP strategies and opinions of respondents from more than 200 financial institutions ranging from small community banks and credit unions to large national banks. The research uncovers the drivers behind RTP, the challenges FIs face in adopting RTP, their readiness to implement RTP, and their implementation strategies.
The aim of Levvel Research’s 2020 Real-Time Payments Report is to help FIs develop successful RTP product and implementation strategies. The report allows readers to understand the benefits as well as the challenges of an RTP implementation. The insights will enable readers to develop strategic RTP roadmaps and take advantage of the opportunity RTP provides.
You can read the 2020 Real-Time Payments report in its entirety here.
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Throughout this series we'll provide answers to frequently asked questions surrounding product management for RTP, such as managing the product(s) long term, dealing with cannibalizing current products, and more.