Did you know that, according to 2022 Federal Reserve studies, 74% of consumers and 83% of businesses sent or received a faster payment in the past 12 months?
Offering instant payments via the FedNowSM Service will help your credit union meet this demand and keep pace with the competition. Plus, instant payments provide revenue growth and cost-saving opportunities that can benefit your credit union’s bottom line and increase member satisfaction.
Instant payments can also provide cost-saving opportunities to your credit union. For example, your financial institution likely still receives paper checks from some members for loan repayments. These payments may impact your financial institution’s bottom line, since paper payment services are typically less profitable. As instant payments gain popularity, so will straight-through processing rates, which can contribute to higher profitability margins for your financial institution.
Additionally, with traditional payment channels, your members may not know when a payment is completed or when funds are available. These questions, among others, can generate member calls and inquiries. Responding to these calls requires resources on your end, and this payment uncertainty can contribute to lower member satisfaction.
Instant payments may not eliminate inquiries entirely, but calls may be significantly reduced due to attributes such as immediate settlement, transparency, and information-rich formats capable of carrying large amounts of structured remittance data. This may translate to a better experience for your members and cost savings to your organization.
“FedNow” is a service mark of the Federal Reserve Banks. © 2023 Federal Reserve Banks