An American Banker poll sponsored by Finzly reveals bankers' expectations for FedNow's profit potential and biggest risks.
CHARLOTTE, N.C. Jan. 30, 2024: Finzly, the pioneering provider of modern payment infrastructure for financial institutions, today published a report that includes polling results of bank executives' expectations for profitability from offering instant payments using FedNow®. The poll found that 51% of bankers believe that FedNow payments will become a profit center for their institutions within the next three years, and 50% think the biggest profit opportunity will come from fees enabling businesses to send and receive instant payments.
The poll results of 267 bankers are included in a new report from Finzly 'New Revenue Opportunities for Banks: B2B Real-Time Payments', which summarizes a webinar hosted by American Banker that brought together speakers Erik Van Bramer, SVP at The Federal Reserve, Ron Shevlin, CRO at Cornerstone Advisors and Finzly's Founder and CEO Booshan Rengachari. The report covers how banks can seize the growth potential of B2B instant payments and delves into top use cases.
The key findings of the poll, along with the conclusions of the esteemed panel are as follows:
When asked about the biggest profit opportunities with B2B instant payments:
Respondents identified their biggest concerns as follows:
Banks continue to treat instant payments as a product, and that's the bigger problem. We must think from the customer's perspective and offer different options: some want to move money within an hour and pay a higher fee, others want to move the money in 24 hours to pay a lower fee, and still others are willing to wait four days and pay no fee. The customer will start paying for the experience, not for the payment.
With nearly 300 participants, the poll results are representative of wider industry sentiment. To read the full report with poll findings go here.
Source: PRWeb
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