Payments Modernization: An Account Holder View

Jane needs to pay her car loan. She knows she can do it using her computer or her phone, but she has been really busy lately and hasn’t had the time to sit down and focus. She asks Alexa on her Amazon Echo Dot to make a one-time payment using her debit card and is relieved to get it paid before she incurs past due charges.

Convenient loan payments mean offering as many payment options as possible — mobile, web, IVR, agent, walk-in, Facebook Messenger, or intelligent assistants. This also means payment methods, such as ACH and card payments, and payment options such as one-time-recurring and autopay.

John needs to pay his HOA bill. He really doesn’t want to set up yet another website account and re-enter his account information, so he uses the bill pay function at his financial institution to quickly pay his bill. He has set up a recurring payment to keep himself on track since it’s only due quarterly.

It’s important to enable consumers to manage and pay their bills all in one place within their existing digital banking channels. Options should include one-time or recurring, immediate, scheduled next day, or a day in the future.

Jane needs to move money between her business accounts at two banks fairly frequently. She transfers money from her bank to her credit union account for payroll as a recurring transaction. It’s an important transaction, and she needs it to happen automatically. That way, she doesn't miss it while she's traveling.

On average, consumers own 5.3 accounts across all types of financial institutions. They need to be able to move money effortlessly and securely between their bank accounts, regardless of financial institution, with one-time or recurring, immediate, same day or next date, or future date options.

John used to use a major digital wallet provider to transfer money with friends but got tired of having to make a transfer to his bank account, which takes time unless he pays a fee. He started using P2P at his financial institution to share restaurant bills with his friends using just their email addresses or phone numbers. He liked knowing the funds would go directly into his account vs. using a third-party service.

Consumers take for granted the ability to quickly transfer money to friends and family members without sharing account information. However, financial institutions can offer a more secure, direct to account method of transfer, and with more capabilities such as one one-time, recurring, immediate, same day/next day, or a date in the future.

Jane switched to an insurance company that offered quick claim payments. When she filed an interruption of business claim due to the pandemic, she was thankful to receive the funds right into her account. As an owner of a restaurant, the time and stress to constantly monitor her mailbox for a paper check could have cost her the business, as she still needed to pay her lease no matter what.

Business owners can stand out by quickly and seamlessly sending digital payouts to customers using just their mobile phone numbers or email addresses. There is a clear benefit to the customers inconvenience, and saving on paper checks at the same time provides even more value.

John is setting up a new savings account at his financial institution but is funding it with a portion of another account. Using his phone, he is able to quickly open the account with the convenient funding option of being able to choose from all of his accounts. 

One study showed the abandonment rate for online account opening at 19%. Secure and convenient account funding options are part of the frictionless process needed to decrease account application abandonment.

Jane usually manages her business accounts online but is driving to the airport and doesn’t have time to go through everything on her phone to solve an issue with one of her transactions. She calls into her financial institution, and because they have a holistic view of her profile and transaction history, they are able to quickly see the employee in question she’s referring to and make a transfer for her after she is authenticated. Jane appreciates the quick service and not having to answer a bunch of questions that would take more time that she doesn’t have.

Whether on chat or on the phone, customer service staff should be empowered to quickly access profiles, view reports and transaction history, and schedule and manage payments and transfers on behalf of customers or members.

John has been using his new savings account accesses fairly infrequently. Based on that, his financial institution reaches out to him using a secure message offering him an account with a higher interest rate that allows fewer withdrawals. He appreciates the customized recommendation for his needs and makes the switch. 

In order to make faster and better business decisions, visibility into consumers’ money movement activity and behavior are key. However, just viewing one channel isn’t helpful. A consolidated view of customer and transaction information across channels, money movement services, and lines of business provides is necessary for quality analysis.