Bankers Believe Realtime Will Give Their FIs Competitive Advantage
Most banking executives believe realtime payments will give banks a competitive advantage, according to a recent Finextra report.
The report, titled “Payments Transformation: Jostling for Position in the New Digital Landscape,” released in late October, shows that 84% of respondents said that advent of realtime payments will provide their bank a competitive advantage in the market among fellow banks as well as fintech companies. And in fact, 83% believe that within three years, it will provide a competitive alternative to card payments at the physical point of sale.
Realtime payment, of course, is an ongoing project. The Clearing House expects that by the end of next year, more than half of the banks in the country will be integrated on the realtime payments rail, the first new payments infrastructure in over 40 years.
With realtime payments comes realtime security concerns. Banks will need to strengthen their security systems to be able to prevent and monitor fraud 24/7 for 365 days in realtime.
So it comes as no surprise that 47% of bank executives strongly agree that their bank should invest in realtime fraud prevention, on par with the 47% who strongly believe their bank should invest in realtime payments.
Another popular area that bank executives believe makes a compelling business case for banks to invest in is their APIs.
