Faster lives need faster payments
Credit unions are facing a once-in-a-generation imperative in 2023: either respond to growing member and business demand for real-time payments (RTP), or risk becoming irrelevant.
Demand for faster payments has reached a fever pitch as member and business awareness of the benefits of faster RTP grows and instant access to funds becomes intrinsically intertwined with banking decisions. Around 70% of consumers indicate that faster payment capabilities are a key offering from their financial institutions (FIs).
Innovative offerings from emergent players, tech behemoths (Apple, Google), and other market disruptors are further shaking up the payments landscape and providing both consumers and businesses with payments transactions options beyond traditional banking models.
Credit unions, though widely recognized as customer experience leaders, tend to lag in modernization, including RTP adoption. The strategic implications for credit unions is monumental. But implementing, operationalizing, and monetizing the requisite advanced fraud prevention can often eclipse any opportunities associated with delivering RTP functionality.
Demand for RTP is driving significant industry changes. To remain relevant, credit unions need to be prepared to meet the evolving needs of their members while safeguarding their institution against sophisticated fraud at scale.
The Future is here…for RTP
The future of RTP is fast-approaching, if not here, and there’s numerous benefits and opportunities for credit unions, including the ability to offer new services to members, increase transaction efficiency, and reduce costs.
Increased customer satisfaction
Members can take advantage of the convenience and speed of real-time payments, which can improve member satisfaction and digital experiences.
Improved cash management
Real-time visibility into transactions and balances offered by RTP can enable more efficient cash flow management.
Credit unions that act quickly to offer RTP may have a competitive advantage over larger banks that have yet to implement the technology.
Costs can be reduced by eliminating the need for check processing and other manual transactions, which is often expensive.
Essentially, RTP represents a classic case of disrupt or be disrupted. Credit unions need to explore how they can best exploit RTP and usher offerings into new, value-added territory. However, a proven fraud prevention framework must be integrated with any RTP strategy.
RTP is a Game Changer: Can Your Fraud Prevention Solution Say the Same?
Real-time payments aren’t a fleeting trend – it’s on track to become the leading technology within the payments landscape. Members are going to stay on the current course of accelerated RTP adoption and you as a credit union must follow suit. RTP capabilities can be a game-changer and lead to new, differentiating experiences that delights members and nurtures trust, without compromising on security.
Contextual insights, high quality data, strategic automation, and adaptability should be absolutes in a faster and real-time payments environment. Because fraudsters are like any predator; they target the weakest prey first. Credit unions need to ensure they’re in a position to intuitively evolve their fraud prevention approaches alongside developing threats to effectively protect their organization and their members.
We invite you to connect with us and share any feedback as the RTP landscape unfolds in 2023.
Stay safe out there.