We have been following the recent developments in real-time payments with some interest. While adoption is increasing it is not going as fast as many industry observers had hoped.
Why?
According to American Banker, many banks have been working towards receiving funds but have not done the work to start sending real-time payments. And therein lies the problem.
It is more complex and therefore more expensive to create the technology to support sending and receiving. And if a bank is not set up to send a real-time payment on FedNow it cannot receive a request-for-payment either. And this is a key selling point for FedNow and RTP.
So, banks are mostly waiting on the sidelines until they are forced to move due to customer expectations. Eventually, all large and regional banks will be on board and then there will be pressure on everyone else to move.
But we are likely years away from that tipping point.
Featured
Why aren’t more banks sending real-time payments?
By John Adams
Banks can choose to only receive transactions instantly, and it’s the most popular choice. Simply preferring to get paid faster isn’t the reason.
From Fintech Nexus
> Backup servicing’s importance highlighted by SVB collapse
By Tony Zerucha
The Silicon Valley Bank collapse highlighted the importance of a little-discussed but key feature of healthy banks and fintechs – backup servicing.
> Top 10 Most Popular Articles in January
By Peter Renton
The top 10 most viewed articles from January on Fintech Nexus.
Podcast
Jeffrey Rogers, President & CEO of LiftForward on embedded lending
The CEO and founder of LiftForward, Jeffrey Rogers, talks about the origins of embedded lending, BNPL, partnering with Microsoft,…
Listen Now
Tweet of the Day
Also Making News
- USA: NYCB losses reveal weakness of US bank regulation
Losses on commercial real-estate loans at US regional banks should surprise no one; risk at the heart of the US financial system thanks to weak regulation should shock us all.
- USA: Celsius to exit bankruptcy with $3 billion payout
Cryptocurrency company Celsius Network has begun a $3 billion payout in an approved plan to exit bankruptcy.
- USA: An American CBDC Could Be The Ultimate Soft Power
A well-designed digital dollar would be a form of soft power. In fact, as Deutsche Bank Research wrote last year, a CBDC might be the “ultimate soft power”.
- USA: FDIC ‘dismantled’ tech office, GOP lawmakers say
Top House Financial Services Committee Republicans questioned the Federal Deposit Insurance Corp.’s stance on innovation, and said they were worried about the impact that would have on the bank examination process.
- Global: FTX to repay customers, nixes reboot
“I’d like the court and stakeholders to understand this is not a guarantee. … But we believe the objective is within reach and we have a strategy to achieve it,” said FTX attorney Andrew Dietderich.
- Global: How digitalisation is changing lending
I was recently having a chat with my old friend Slava Solodkiy about the way in which digitalisation is changing lending. He then surprised me by summarising our discussion and allowing me to share it here! Here’s his write-up: How digitalisation is changing lending.
- LatAm: Banorte launches bineo, the first completely digital bank in Mexico
Chairman of Grupo Financiero Banorte, Carlos Hank Gonzalez, has launched bineo, the first fully digital bank in Mexico.
- USA: A New Perk for Some Student Loan Borrowers: A 401(k) Match
Legislation that went into effect this year makes it easier for student loan borrowers to save for retirement while paying down their debt.
To sponsor our newsletters and reach 220,000 fintech enthusiasts with your message, contact us here.
