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.
Levvel helps clients use technology to change the world by transforming their businesses with strategic consulting and technical execution services. Whether you’re reinventing your company or creating an industry-changing product, we exist to make your story a success.
Levvel exists at the crossroads of strategic insight and the ability to execute. Our teams bring the gamut of business domain knowledge, design prowess, and technical expertise to create success for your business across the entire project lifecycle.
For press inquiries and interview requests, contact:
Michael Aprile firstname.lastname@example.org (980)278-3065
In 2019, we participated in the RTP Buildathon, sponsored by The Clearing House, Oracle, Yodlee, and The Carolina Fintech Hub. Our task was creating a compelling use case for leveraging the RTP rail and building a working prototype to demo our idea.
Integrating the Zelle P2P Service into a financial institution's ecosystem is an incredible opportunity, but the journey to get there can be a rocky one for institutions not adequately prepared.
Real-Time Payment (RTP) adoption and readiness have been a point of consideration for Financial Institutions (FIs) dating back to The Clearing House’s (TCH) announcement to launch the service back in 2014.
The P2P space is a competitive landscape with fintechs and big tech companies competing with banks for wallet share. Zelle has strengthened banks’ abilities to participate in this market, helping them maintain their valuable customer relationships.