PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
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

    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Payoneer eBook: