PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Industry Opinions
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Industry Opinions
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Fending off Fintech with Same Day ACH

Sarah Grotta by Sarah Grotta
February 5, 2018
in Analysts Coverage
0
Payments

Payments

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

A blog posted to BankingExchange discussed (maybe even ranted a little) about financial institutions’ (FIs) promotion, or lack of promotion, of the new same day ACH processing capabilities:

“…few banks are marketing same-day ACH and many customers don’t know 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. And the same banks that lament not having enough fee income or deposits don’t market same-day ACH.”

I have to agree with that point.  In any organization there are competing priorities of course, but same day ACH has been nearly three years in the making.  (ACH credits rolled out in 2016, debits in 2017 and next month, the requirements to post same day ACH by 5:00 p.m. local time comes into effect.)  And it has what other payment types often lack, a clear revenue model. The blogger articulates the unique advantage of same-day to FIs:

Over the next several years, payment velocity will only increase. If your bank struggles with how to be more innovative, this is an easy solution.

Card-based payment rails (Visa, Mastercard, etc.) are available to non-bank payment competitors, and banks can’t let them fill the void. The technology, compliance, fraud prevention, and process methodology for same-day ACH already exists and is available to almost every bank. Failure to provide a real-time payment product to the marketplace is a failure of creativity and strategy rather than a failure of innovation.

Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group

Read the quoted story here

Tags: ACHFintech
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Analyst Coverage, Payments Data, and News Delivered Daily
Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

Must Reads

What Is the Difference Between PCI-Certified and Non-Certified Encryption?

What Is the Difference Between PCI-Certified and Non-Certified Encryption?

February 18, 2019
Does the Answer to POS Consumer Financing Lie in Bank-Fintech Collaboration?

Does the Answer to POS Consumer Financing Lie in Bank-Fintech Collaboration?

February 15, 2019
Faster Payments Need Faster Identity Verification

Faster Payments Need Faster Identity Verification

February 14, 2019
Can AI Help Small Companies Better Compete with Market Leaders

Can AI Help Small Companies Better Compete with Market Leaders?

February 13, 2019
Scope of the Growing Technology in the World Financial Ecosystem

Scope of the Growing Technology in the World Financial Ecosystem

February 12, 2019
Inter-connecting the Digital Payments Ecosystem

Inter-connecting the Digital Payments Ecosystem

February 11, 2019
When Real-Time Payments Go Wrong

When Real-Time Payments Go Wrong

February 8, 2019
cybersecurity

A Checklist for Financial Institutions to Avoid Cyberattacks

February 7, 2019

Connect With Us

  • Advertise With Us
  • About Us
  • Terms of Use

Analyst Coverage, Payments Data, and News Delivered Daily

Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Industry Opinions
  • News
  • Events

© 2019 PaymentsJournal.com

  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Industry Opinions
  • News
  • Events
No Result
View All Result
×

Login

Register

Forgotten Password?

Register | Lost your password?
| Back to Login