NEW YORK, 23 Aug 2021 / PRNewswire / – Volante Technologies, the global leader in cloud payments and financial messaging, today revealed the results of its Payments Modernization Survey for Mid-Tier Banks and Credit Unions in the U.S. United with assets between $ 2.5 billion and $ 25 billion. The results show that real-time payment connections are expected to triple over the course of the year and that cloud-based payments as a service (PaaS) is a growing industry priority.
The study, conducted in the first quarter of 2021, samples a significant portion of the mid-range market segment. It highlights the urgent need to improve productivity to support increasing payment volumes and the complexity of maintaining multiple payment platforms. The challenges cover all types of payment, from domestic, real-time and ACH transfers to cross-border payments.
Keith gray, Vice President, Strategic Partnerships, The Clearing House, said: “We are delighted that Volante’s findings confirm the trends we have observed over the past year. More than 140 financial institutions already participate in the RTP network, and more are expected to be operational by the end of the year. Mid-size banks are at the heart of the upturn in adoption, as the RTP network offers them an attractive new service for their customers and an opportunity to differentiate themselves from their peers.
“Financial institutions are looking to streamline their operations to prepare for the possible prevalence of 24/7 real-time payments and the increased operational complexity that this will bring,” said John Farrell, SVP Global Product Management, Volante Technologies. “There is a strong desire for capabilities related to digital transformation, ranging from increased automation to improved reporting and lower operating costs. “
Notable results include:
- Payments as a service is the # 1 modernization initiative: Of all the modernization initiatives surveyed by respondents over the coming year, cloud and PaaS took the top spot, followed closely by replacement of wire, ACH and other systems of payment.
- Most mid-tier banks don’t use a central processor for payments: A surprisingly low 22% use a central processor for payment services, with the vast majority taking a state-of-the-art approach, even among small institutions. The ease of upgrading to new payment capabilities, better rates and reporting, and 24/7 operations were major factors in leaving the core business.
- The increase in volumes is a concern: six in 10 respondents identified significant productivity issues due to increased yarn volumes, with a similar percentage saying the same about their ACH processing operations.
- Real-time payments should take off: 15% of respondents say their bank is currently connected to The Clearing House’s RTP® network, with around twice as many people planning to connect in the coming year, indicating that the number of Mid-tier banks with RTP capacity will triple in 2022.
- Only a small majority of banks can welcome professional clients in less than a weekOut of the rest, most take several weeks to onboard a business, with 16% of respondents lacking visibility into onboarding performance, a significant underperformance relative to onboarding efficiency for consumers.
“While real-time payments are a long-term priority, mid-tier banks are clearly planning to modernize all of their domestic and cross-border payment capabilities in the short term,” Farrell continued. “It is encouraging that they are increasingly aware that migrating to the cloud and Payments as a Service is the fastest and most cost effective way for them to scale beyond legacy limitations. “
For a free copy of the survey, see Payments Modernization: Mid-Tier Banks in the United States.
About Volante Technologies
Volante Technologies is the world’s leading provider of cloud payment and financial messaging solutions to accelerate digital transformation. We serve as a trusted partner to more than 100 banks, financial institutions, market infrastructures, clearing houses and corporate treasuries in 35 countries. Our solutions and services process millions of transactions and billions of dollars every day, fueling four of the top five investment banks, 40% of all U.S. commercial bank deposits, and 70% of global card traffic. As a result, our customers can stay ahead of emerging trends, become more competitive, deliver a superior customer experience, and grow their businesses through rapid innovation. To learn more, visit volsetech.com. Follow us on linkedin.com/company/volante-technologies and twitter.com/volantetech.
SOURCE Volante Technologies, Inc.