Joe Casali, AAP, NCP, EVP of Payments Innovation for NEACH
Payments modernization and strategy are top of mind for most financial institutions, with seven out of ten executives agreeing that transforming the payments industry is a core pillar of their larger digital program, according to Accenture. While most bankers agree on prioritizing a strategic approach to payments, knowing where to start against today's backdrop of accelerated digitization and innovation can be a challenge.
NEACH recently sat down with Keith Riddle, President and CEO of Sherpa Technologies, a credit union service organization (CUSO) owned by Corporate One Federal Credit Union, one of the nation’s largest and most innovative corporate credit unions with $6.5 billion in assets, to talk payments modernization and strategy.
“Payments modernization can take many forms, but as we define it, it’s an open framework, access to multiple payments methods or streams, and the availability of those payments methods within integrated digital experiences,” says Riddle. “If community banks and credit unions don’t seek an open framework where consumers and small businesses can consume multiple payments methods and messages, they fall prey to competitors that have integrated those services within digital experience platforms.”
How FIs Can Future-Proof Their Payments Strategy
Learn more about how your credit union can future-proof its payments strategy to drive modernization forward in this on-demand webinar with Sherpa’s CEO and President Keith Riddle and Levvel’s FS&P Senior Director Fred Fuller.
The payments experience
Within the broader context of payments modernization, no delivery channel impacts the customer experience more than payments for consumers and small businesses. Consumers expect immediacy, transparency, and simplicity in interacting with digital experiences.
“That’s why there has been a significant migration for consumers and small businesses in leveraging FinTech platforms that have embedded payments simply but extensively in their platforms,” says Riddle. “If a credit union or community bank cannot provide that same degree of convenience, simplicity, and embedded functionality to help consumers and small businesses manage their cash flow, then they’re going to start losing those consumer relationships to institutions or FinTech platforms that do.”
Future-proofing your payments strategy
When we talk about future-proofing your payments strategy, it goes back to that open platform, says Riddle. When he speaks of "open platform," Riddle is referring to an open framework for integrating diverse payment methods and vetted FinTech solutions with credit union systems and applications. Using an open platform means financial institutions can upgrade their strategy or work through a phased approach for their modernization efforts.
According to Riddle, there are a few steps you can take to future-proof your financial institutions and payments modernization strategy:
Payments modernization shows no signs of slowing down. With the continued acceleration of digitization and changing customer preferences, delaying your payments modernization efforts can cause customer drop-off and make your financial institution less competitive during today’s rapid pace of change.
Payments modernization doesn’t have to feel overwhelming. All it takes is one small step to start your journey toward payments modernization and future-proofing your payments strategy.
Republished with permission from NEACH