Cloud provider’s payments modernization survey highlights the key priorities for mid-tier banks in the U.S.
NEW YORK, August 23, 2021 – Volante Technologies, the global leader in cloud payments and financial messaging, today revealed findings from its payments modernization survey aimed at mid-tier banks and credit unions in the U.S. with assets between USD 2.5B and USD 25B. The results show that real-time payments connections are expected to triple within the year, and that cloud Payments as a Service (PaaS) is a growing industry priority.
The study, conducted in Q1 of 2021, samples a sizeable portion of the mid-tier market segment. It highlights the dire need for improved productivity to support rising payment volumes and the complexity of maintaining multiple payment platforms. The challenges span all payment types, from domestic wire, real-time, and ACH to cross-border payments.
“Financial institutions are seeking to streamline their operations to prepare for the eventual prevalence of real-time 24×7 payments and the increased operational complexity this will bring,” said John Farrell, SVP Global Product Management, Volante Technologies. “There is a strong desire for capabilities related to digital transformation, ranging from increased automation to improved reporting and lower operating costs.”
Notable findings include:
Keith Gray, Vice-President, Strategic Partnerships, The Clearing House, said, “We are delighted that Volante’s findings confirm the trends that we have been seeing in the last year. Over 140 financial institutions are already participating in the RTP network, with more slated to go live by year end. 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.”
“While real-time payments are a long-term priority, mid-tier banks are clearly planning to modernize all their domestic and cross-border payments capabilities in the short term,” continued Farrell. “It is encouraging to see that they are increasingly aware that migration to cloud and Payments as a Service is the fastest and most cost-effective way for them to evolve beyond legacy limitations.”
For a complimentary copy of the survey, visit Payments Modernization: US Mid-Tier Banks.