October 8, 2019
TABLE OF CONTENTS
It should be of no surprise that the majority (84%) of smaller financial institutions (FIs) are reliant on third-party assistance in launching real-time payments (RTP). Most smaller institutions battle against lack of internal resources and rely heavily on third parties for a number of functions, including online and mobile banking front end. This leads them to seek help in a few ways for RTP:
These institutions are deciding if, how, and when to launch RTP, how the new service will fit into their technical stack, how to present it as a product to their clients, and much more. The resources and insight needed to perform all of these tasks in addition to business-as-usual items often become overwhelming, and in some cases impossible. This leads these institutions to seek outside help, especially with something as potentially transformative as RTP.
Smaller institutions also realize their technical stack and fraud monitoring capabilities often are not sufficient to take full advantage of, nor properly monitor, RTP as a service. Many third parties have created productized solutions for RTP that allow these smaller institutions to participate without doing most of the heavy lifting. In addition, technical support is often needed to integrate with a servicing solution, which is often also provided by a third party technical provider or consulting group.
Smaller institutions are able to take advantage of RTP, but they will need assistance in order to fully realize the benefits it can offer them and their clients. RTP has the potential to transform the organization as well as the payments industry and should be approached with research and preparation. Third-party services are able to fill gaps in smaller institutions so that they are able to launch RTP in a way that will be strategic and forward-looking.
Our 2020 Real-time Payments Report is here. See the latest industry insights, emerging trends, and critical data shaping the future of real-time payments by reading the report today.
Senior Financial Services Consultant
Chris is a Senior Financial Services Consultant who works across a variety of companies and industries to create strategic payments advantages. He has over eight years of experience in managing emerging payments and digital platforms and served as a subject matter expert in tokenization, digital product management, real-time payments, Zelle, and open banking. Chris spent five years at BBVA Compass, most recently leading business-efforts in the launch of Google Pay and Samsung Pay, as well as managing their mobile wallet offering. The last three years have focused on tokenization, Zelle, and real-time payments strategies within organizations of different sizes and needs. He currently resides in Charlotte, NC with his wife and three children.
On January 28, 2021 at 2 PM ET, join industry experts from Levvel and Bank of the West for a webinar on how financial institutions can be successful in the new world of digital payments and ‘Banking as a Service’ (BaaS).
While adoption of The Clearing House’s Real-Time Payments (RTP) is picking up among financial institutions, its spread among businesses is still early.
In our recent survey of businesses of all sizes, 49% of respondents said they were uninformed about RTP. This gap can be filled by financial institutions, business process automation software, and even businesses themselves.
Levvel Research's 2021 Real-Time Payments Report (RTP) provides a guide to the many use cases of RTP for businesses and outlines the ROI of adoption for financial management processes, product delivery, and customer satisfaction.