Ron Shevlin, co-author of our recent credit-building report with Cornerstone Advisors, shares insights on monetizing faster payments- a topic that connects directly to our research on consumer-permissioned data. Financial institutions need to shift from leading with technology to solving real business problems. The same principle applies to credit building: consumers don't want another feature, they want solutions that improve their financial health. Worth a read if you're thinking about how to create revenue from new payment rails and customer data capabilities>> https://lnkd.in/gVJjbxD8
𝗝𝘂𝘀𝘁 𝟭𝟭% 𝗼𝗳 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝘀 𝗲𝘅𝗽𝗲𝗰𝘁 𝘁𝗼 𝗺𝗼𝗻𝗲𝘁𝗶𝘇𝗲 𝗕𝟮𝗕 𝗶𝗻𝘀𝘁𝗮𝗻𝘁 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝟯 𝘆𝗲𝗮𝗿𝘀, 𝗮𝗻𝗱 𝗮 𝗺𝗲𝗿𝗲 𝟲% 𝗲𝘅𝗽𝗲𝗰𝘁 𝘁𝗼 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗳𝗿𝗼𝗺 𝗿𝗲𝘁𝗮𝗶𝗹 𝗳𝗮𝘀𝘁𝗲𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀. 𝗧𝗵𝗲𝘆'𝗿𝗲 𝗺𝗶𝘀𝘀𝗶𝗻𝗴 𝘀𝗼𝗺𝗲 𝗯𝗶𝗴 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀. Cornerstone Advisors just published a report titled 𝙈𝙤𝙣𝙚𝙩𝙞𝙯𝙞𝙣𝙜 𝙁𝙖𝙨𝙩𝙚𝙧 𝙋𝙖𝙮𝙢𝙚𝙣𝙩𝙨 designed to dispel FIs' beliefs that instant payments won't be a profit center. Most banks have framed faster payments as a simple enhancement to existing systems—faster ACH, instant wire, or real-time settlement. But businesses—especially small and mid-sized ones—aren’t clamoring for faster money movement. What they want are solutions to long-standing operational inefficiencies like late payments, manual reconciliation, fragmented payroll processes, and outdated disbursement systems. Instant payments can address these problems if banks reframe their offerings. Rather than leading with speed, banks should build and market faster payments as embedded solutions within specific workflows. Monetize the business pain point, not the rail. The report describes instant payment monetization opportunities including: ▶️ QR code-enabled instant bill payments ▶️ Payroll and workforce disbursements ▶️ B2B instant payments ▶️ Treasury and liquidity management By themselves, real-time rails aren’t monetizable. The value lies in the products and services built on top of them. That requires a mindset shift from technical enablement to business enablement. Check the comments for a link to the report (free as always, unlike some other analyst firms who keep their content behind cost-prohibitive firewalls). Peter Davey Peter Tapling Carlos Netto Sarah Hoisington David True Erin McCune