Improve Real-Time Payment Market Positioning Through Consumer Diversity
- Date:September 23, 2020
- Author(s):
- Krista Tedder
- Report Details: 14 pages, 4 graphics
- Research Topic(s):
- Tech & Infrastructure
- PAID CONTENT
Overview
Financial institutions and challenger banks are building payment strategies which include multiple faster payment methods however the strategies traditional banks deployed look very different than the newer market entrants. Financial institutions’ payment strategies are treating new ways to pay as requirements while challenger banks look at faster payments as differentiators. To move towards a more progressive payment strategy, financial institutions need to understand where the bias of traditional banking is impeding their ability to expand their market position.
The example provided in this report focuses on the diversity gap of payments and Black Americans, however financial institutions should evaluate payment strategies across a broad spectrum of consumers. Race, ethnicity, gender, age, technology sophistication, financial stability, and other segments require different payment strategies. This report helps focus on how consumer groups can be evaluated to diversify ways to pay and expand the market share of the financial institution through accessibility.
Key questions discussed in this report:
- Why are faster-payment strategies crucial to a financial institution’s market position?
- What competitive threats do financial institutions face if they do not adopt inclusive payment strategies?
- How do financial institutions overcome diversity bias when building a faster-payment strategy?
Methodology
The payment product ownership data was collected in June 2020 from 6,000 consumers. The digital banking survey was conducted online with a margin of error at +/- 1.27%
The data in the report associated with P2P usage was collected in May 2020 from 3,000 U.S. consumers. The consumer payment survey was conducted online with a margin of error at +/- 1.79%.
Learn More About This Report & Javelin
Related content
Navigating 1033: Technology Considerations for the New Rules of the Road
The long-awaited final rules under Section 1033 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 present technology departments and tech leadership with a n...
Demystifying Payment Orchestration for Banks
Payment orchestration for banks is fundamentally about lowering costs, increasing efficiency, and creating better customer journeys. The process of building orchestration architect...
Banking as a Service and Self-Inflicted Wounds
The “unbundling” of financial services through banking-as-a-service arrangements cast risk and compliance into a gray area. This was underscored by the failure of BaaS provider Syn...
Make informed decisions in a digital financial world