American FIs prepare for faster payments revolution

The vast majority of American financial institutions are experiencing, or soon expect to experience, a demand for faster payments, according to a survey from the Center for Payments.

Despite this, of the more than 700 FIs and third-party senders quizzed, only a third currently have a payments strategy in place to help set payment priorities, inform decision making and focus resources.

Generally speaking, respondents are unsure about their overall readiness for the faster payments evolution and 56% report using multiple sources of information to drive their strategy.

The survey also suggests core systems providers stand to lose market share to third-party vendors. Only 55% of respondents are confident core-providers will provide the products necessary to respond to payments industry changes and 76% are willing to use a third-party vendor for additional products and services.

“These findings reinforce that US financial institutions are quickly realising that faster payments solutions are becoming mainstream and they are actively preparing for the opportunities and challenges these solutions present,” says Bill Schoch, chair of the Center for Payments.