The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
The pandemic has accelerated the implementation of instant payments and the need for community banks to have a strategy in place, according to the latest Main Street Matters post.
RTP and FedNow: In the post, ICBA Bancard President and CEO Tina Giorgio and ICBA’s Deborah Matthews Phillips note that some community banks are already receiving RTP transactions while preparing to send and receive FedNow transactions.
Learning Curve: “This gives community banks a chance to learn the instant payments landscape, assess operational changes needed, and shorten the learning curve for when FedNow is available,” said Matthews Phillips, who is also vice chair of the Faster Payment Council board of directors.