Instant payments are no longer a nice-to-have. Are your core systems ready?

According to Juniper's Jon Budd and Jorge Jimenez, the launch of FedNow was only a first step in helping U.S. financial institutions catch up to their international counterparts when it comes to instant payments for retail and business customers. Major obstacles remain, including aging legacy core systems and outdated practices. How can banks and credit unions create a technology roadmap to successful payments modernization?

Consumers are accustomed to seamless, instant money movement in many of their digital interactions. Yet, lagging systems modernization at many financial institutions has created friction and opportunities for nonbank disruptors.

To shed light on how banks can successfully navigate this payments transformation, we spoke with two executives from Juniper Payments: Jon Budd, the chief executive, and Jorge Jimenez, the president.

Juniper provides cloud-based transaction processing for more than 1,500 banks, credit unions, and fintech firms, handling $1.2 trillion in payments annually.

In the following Q&A, Budd and Jimenez share their insight on the forces reshaping payments and offer some advice to financial institutions seeking to keep up with consumer expectations. Their conversation is with Jim Marous, founder and chief executive of the Digital Banking Report and co-publisher of The Financial Brand.


continue reading »