- Volante Technologies, a major name in the cloud payments sphere, has confirmed a swathe of new findings from a survey of mid-level banks and credit unions in the US.
- The findings show that real-time payments connections are expected to skyrocket before the end of 2021.
- “Financial institutions are seeking to streamline their operations to prepare for the eventual prevalence of real-time 24x7 payments and the increased operational complexity this will bring,” said a spokesperson for Volante.
Volante Technologies, a market leader in cloud-based online money transfers and financial messaging, has released the results from a recent survey.
The company issued the findings of its payments modernisation survey this week.
The survey was sent to mid-tier banks and other financial institutions such as credit unions.
Only US institutions were included, and they had to have assets between US$2.5bn and US$25bn in order to participate.
It revealed that real-time payments connections are on track to go up threefold before the end of 2021.
It also shows that ‘payments as a service’ (PaaS) is quickly becoming a big priority for the sector and is widely considered to be the most popular modernisation plan in the industry.
Other modernisation moves, such as replacing the wire transfer as a payment method, are also popular.
The survey revealed that the majority of mid-level banks don’t use a core processor as part of their payments work.
In total, only 22% use this service.
Another figure revealed that only 15% of mid-tier institutions are currently connected to the RTP network offered by The Clearing House.
However, this is set to change, with almost 30% saying that they plan to start using it this year.
In a statement, The Clearing House’s vice president for strategic partnerships said that the findings from Volante reflected what his own firm was seeing.
Keith Gray said that more than 100 firms were already on the RTP network.
“We are delighted that Volante’s findings confirm the trends that we have been seeing in the last year,” he said.
“Over 140 financial institutions are already participating in the RTP network, with more slated to go live by year end.”
He also said that differentiation was a key desire for most banks.
“Mid-tier banks are at the heart of the upswing in adoption, as the RTP network provides them with a compelling new service for their customers, and an opportunity to differentiate themselves from their peers,” he said.
The senior vice president for global product management at Volante Technologies said that many firms were looking to “streamline” what they did.
“Financial institutions are seeking to streamline their operations to prepare for the eventual prevalence of real-time 24x7 payments and the increased operational complexity this will bring,” said John Farrell.
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