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Modernizing Payments Within the Digital Banking Platform: Why Financial Institutions Need To Act Now

Alacriti

As Alkami gears up for our annual conference, Alkami Co:lab, we wanted to introduce you to our innovative technology partners. Powered by our partner program, together we are empowering financial institutions with market-leading solutions that differentiate the digital banking platform. At our event, banks and credit unions will have the opportunity to connect with these exhibitors in the Innovation Lab. To learn more about Co:lab, read the press release here.

As consumers demand more convenience, speed, and security in their payment experiences, the pressure is on banks and credit unions to adapt and innovate. In fact, only 6% of surveyed financial institutions (in North American, European, and Asian-Pacific countries) do not plan to invest in payments technology in the next 2 years. Alacriti is a leading financial technology company dedicated to helping financial institutions meet this challenge. Alacriti’s comprehensive product suite, including a payments hub and digital loan payment technology, is fully integrated with Alkami’s Digital Banking Platform.
 

The Imperative for Modernization

Consumers now expect a seamless, unified payment experience across various platforms, whether they are making a loan payment, transferring funds, or paying bills. The inconsistency in user experiences across different payment products and services, often due to legacy infrastructures patched together with various vendor solutions, poses a significant obstacle to achieving this goal.

For instance, if an account holder is making a loan payment, they expect to be able to quickly pay it without having to log in and also be able to access modern payment methods such as Apple Pay. Financial institutions must offer a plethora of payment options, including mobile, web, interactive voice response (IVR), and even intelligent assistants, to cater to these varied preferences. Alacriti’s loan payment solution enables financial institutions to accept payments from consumer and business customers with easy access to the payment channels, payment methods, and payment options they demand.
 

Bridging the Gap With Unified Experiences

A unified payment experience is crucial for the future success of financial institutions. This involves enabling consumers to manage and pay their bills in one place, move money effortlessly between accounts, and enjoy secure, direct-to-account transfers without sharing sensitive information. For businesses, offering quick digital payouts can significantly enhance customer satisfaction and loyalty.

Moreover, the integration of customer service with a holistic view of account holder profiles and transaction history can greatly improve the efficiency of resolving issues and making transactions on behalf of account holders. Alacriti facilitates this by providing cross-rail and centralized reporting, enabling financial institutions to offer a consistent and modern payment experience across all channels.
 

Navigating Faster Payments 

The modernization of payments is not just about enhancing user experience but also about integrating new technologies and capabilities. The advent of real-time payments and the overall push towards faster payment methods make it necessary for financial institutions to be agile and flexible to accommodate these changes.

For example, in July of 2023, the RTP® network surpassed the ½ billion payment milestone, which highlights the industry’s move towards more efficient and faster payment solutions. Recently, the FedNow®  Service hit a major milestone in achieving over 500 participating financial institutions. Similarly, the increase in the Same Day ACH payment limit to $1 million reflects the growing demand for quicker payment processing. And that demand isn’t just from individuals. Studies have shown that 43% of businesses will leave their current financial institution to access real-time capabilities. 

Alacriti’s payments solutions provide financial institutions with the ability to automate payments through initiation and settlement across all payment rails on a secure, unified, future-proof platform. This includes support for the RTP network, the FedNow Service, Visa Direct, Fedwire, and automated clearing house (ACH) payment rails.

 

 

Overcoming Challenges and Embracing Opportunities

Despite the clear benefits of payments modernization, financial institutions face several challenges, including the integration of legacy systems, education gaps, and the threat of disintermediation by fintechs and non-bank payment providers. To overcome these challenges, financial institutions must focus on enhancing their existing infrastructure, offering new payment products and technologies, and educating their account holders about the available options.

The partnership between financial institutions and fintechs plays a crucial role in this journey. Alacriti’s solutions provide a path forward by facilitating the fast and simple delivery of modern money movement and payment experiences without expensive upgrades to current systems while offering additional monetization opportunities. This collaboration allows financial institutions to leverage the agility and innovation of fintechs while maintaining the trust and security of their established account holder base.

 

Gain a Competitive Edge with Alacriti

As the payments ecosystem evolves, financial institutions must stay ahead of the curve by embracing change and innovation. This involves not only adopting new technologies and payment methods but also rethinking their approach to customer and member engagement and service delivery. Learn why financial institutions are poised to gain a competitive advantage with Alacriti:

  • Innovative Technology: Alacriti is committed to delivering better solutions through advanced technology and rapid development. Alacriti’s scalable, ISO 20022-based flexible architecture not only meets but exceeds industry regulation standards, preparing financial institutions for the future with best-of-breed technology. Our fast pace of innovation ensures that we are typically first to market, as evidenced by our distinction as one of the first to get certified with FedNow and execute the first live transaction. While many claim to connect to all the rails, Alacriti is already there, powering Send capabilities.
  • Seamless Connectivity: Integration is simple with Alacriti’s open APIs, enabling seamless connectivity with financial institutions’ existing systems (e.g., core, digital, and risk management). This translates to shorter time-to-market and reduced implementation costs. Moreover, the Alacriti platform provides a single view of all your data, offering cohesive and meaningful reporting for unparalleled transparency.
  • Customer & Member Engagement: Alacriti is committed to providing tailored support for financial institutions, whether for new account funding, loan disbursement, or other specialized needs.

In summary, payments modernization is a critical aspect of the future success of financial institutions, which many of Alkami’s customers have adopted. By offering a unified, convenient, and modern payment experience, financial institutions can meet the evolving expectations of their account holders, stay competitive in the digital era, and navigate today’s challenges and opportunities.

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