We live in the age of Instacart, DoorDash, and same-day shipping from Amazon Prime. Yet, many financial services and processes can still take hours, days, or weeks to complete. Leaders across banking, fintech, payments, and lending all point to an increased need for speed to meet consumer expectations when it comes to account opening, money movement, and more. One panel at September’s Money Experience Summit points to a few factors related to speed:
1. Moving Money
According to Stephany Kirkpatrick, founder and CEO of Orum, “real-time payments and FedNow exist but are significantly underutilized and underadopted.” Speed matters for the end user because they need their money. Every generation going forward is going to expect money to move fast, says Larry Talley, founder and CEO of Everyware.
2. Providing Data Access
According to Jean-Paul LaClair, director of financial wellness and open banking at USAA, it’s not just the speed of moving money — it’s the speed of moving data. When you complicate your architecture and data stores, the question is how you enable that seamless flow of data. Open finance APIs can enable more real-time data sharing and enable a broader view of a consumer combined with that data infrastructure and personalization based on insights from the data.
3. Managing Risk and Fraud
Faster payments don't equal more fraud. The financial services industry has an opportunity and a requirement to get better at managing and verifying identities. Once identity verifications are nailed, we can do a better job collectively of keeping bad actors out of the system. Instant account and identity verifications are getting stronger, but there is still more work to be done.
Larry Talley compares this process to the security lines at the airport. Those who have Transportation Security Authority (TSA) pre-check or use Clear can get through the lines much faster and are essentially, “double verified.”
Watch the full discussion on the Next Modern from Money Experience Summit 2022 to learn more.