Community banks and credit unions are cheering the Fed's announcement to develop a real-time payments system. It's a hollow victory as it doesn't address the real challenges facing those financial institutions.
The Fed’s decision to develop a real-time settlement system will benefit consumers and serve as a launchpad to future payments innovations. A Fed-operated system will avoid the risk of having only one, for-profit settlement service run by the nation’s largest financial institutions. This will expand access to more banks.”Every bank and their customers will benefit from a seamless and ubiquitous [real-time payments] system.
NAFCU welcomes news of the Federal Reserve’s decision to launch a faster payments system. NAFCU also supports private sector solutions and hopes that interoperability between the Federal Reserve and private operators can be achieved.” Despite their public approval of the Fed's decision to build a RTP system, community banks and credit unions must know, deep down, that this doesn't address three big challenges:Will Real-Time Payments Really Put a Dent in Overdraft Fees?that in 2018, despite an overall decline in transaction volume, overdraft revenue hit $34.5 billion, up $100 million from 2017.
If financial institutions raised prices in order to offset declining transaction volume, why won't they do so again if and when faster payments further cuts into overdraft volume?from Dave.com, 30% of respondents who had overdrawn on their accounts did so because they forgot to pay a bill, while nearly a quarter said it was because they came up short before payday.
If banks and credit unions are serious about helping consumers reduce the amount paid out in overdraft fees, they can have immediate impact by changing prices and policies--and not waiting for the Fed to implement a new system.Fortunately for banks there's little going on in the way of innovation and change in the payments space.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Trump should calm things down with the Fed, and seek stronger exports to EU, China and JapanProblems of Washington's incoherent fiscal and trade policies should not be dumped on the Federal Reserve.
Baca lebih lajut »
Donald Trump Watches Bill Maher “By Accident”, Tweets On “Sooo Many False Statements” By “Wacko” HBO HostPresident Donald Trump’s executive apparently was interrupted by Real Time today, and POTUS clapped back at its “wacko” host’s “many false statements.” Bill Mahe…
Baca lebih lajut »
Trump Lashes Out at Bill Maher Commentary Over El Paso VisitRealTime guest Anthony Scaramucci responded to Trump on Saturday, 'Eventually he turns on on everyone and soon it will be you and then the entire country'
Baca lebih lajut »
FBI probe at DWP includes scrutiny on cybersecurityFBI agents who raided the Los Angeles DWP sought information about cybersecurity and physical security, says a federal warrant reviewed by The Times.
Baca lebih lajut »
'Prison was a humbling experience': Former federal inmates talk about time in prisonChris Maselli and Jeff Smith seemed to have it all – at one point. But it all came crashing down spectacularly for both of them.
Baca lebih lajut »
El Chapo called the site of Jeffrey Epstein's apparent suicide 'torture'The jail that was the site of Jeffrey Epstein's apparent suicide was recently described as 'torture' by notorious drug lord 'El Chapo.'
Baca lebih lajut »