June 6, 2024 – The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, today announced the publication of its latest industry resource, the Faster Payments and Financial Inclusion survey report. This comprehensive survey, conducted in the third quarter of 2023, explores the readiness and preparation of financial institutions to implement faster payment solutions and their impact on financial inclusion.
The industry survey, developed by the FPC Financial Inclusion Work Group (FIWG), aimed to identify the commercial and product features necessary to enhance financial inclusion through faster payments. With 88 respondents, including banks, credit unions, payment providers, and businesses, the survey report sheds light on the current state of faster payments integration and the efforts needed to ensure these solutions are inclusive for all Americans.
"Our latest survey reveals promising progress in the adoption of faster payments across a diverse range of financial institutions, including banks, credit unions, and payment providers," said Anthony Serio, Chief Risk Officer at Sphere Labs and FPC Financial Inclusion Work Group Chair. "The survey highlighted concerns related to fee variability, cross-border payment capabilities, and the essential need for stronger consumer protections and trust-building measures. Our mission moving forward is clear: to ensure that faster payments evolve not just in terms of speed and efficiency, but also become truly inclusive, addressing the needs of all Americans comprehensively."
Key findings from the survey reveal that while a majority of financial institutions are actively engaging with faster payments, significant work remains to address inclusion "pain points." Only 56% of respondents currently offer faster payments, with an additional 35% planning to do so.
"While financial institutions are beginning to engage with faster payments, their efforts to ensure financial inclusion are in the early stages, and much work needs to be done," said David True, Partner at PayGility Advisors and the FIWG Survey Subgoup Lead. "Our survey identifies the critical areas where institutions must focus to ensure that faster payment solutions are accessible and beneficial to all, especially the unbanked and underserved populations."
The report further underscores that financial institutions must address several key areas to enhance financial inclusion. These include the need for better education and awareness about faster payment options among consumers, improvements in user experience to ensure accessibility for all demographics, and enhanced collaboration among stakeholders to build a more inclusive payment ecosystem. The findings suggest that targeted initiatives and partnerships can play a pivotal role in bridging the gap between faster payments and financial inclusion.
"The FPC is committed to helping foster an inclusive financial ecosystem," said FPC Executive Director Reed Luhtanen. "This survey report provides valuable insights that will guide our members in creating faster payment solutions that truly serve the needs of all consumers, leading to a more equitable financial landscape."
The FPC prioritizes inclusion of diverse perspectives in tackling complex topics such as interoperability, identifying real-world solutions that can ease adoption of faster payments, managing security risks and fraud threats, addressing barriers to financial inclusion and cross-border payments, and more, as the organization paves the way toward a future of faster payments for all.
For more information on the FPC, its current work efforts or to join, visit FasterPaymentsCouncil.org.
Contact:
Elizabeth Grice
U.S. Faster Payments Council
720-737-7368
egrice@fasterpaymentscouncil.org
About the U.S. Faster Payments Council (FPC)
The FPC is an industry-led membership organization whose vision is a world-class payment system where Americans can safely and securely pay anyone, anywhere, at any time and with near-immediate funds availability. By design, the FPC encourages a diverse range of perspectives and is open to all stakeholders in the U.S. payment system. Guided by principles of fairness, inclusiveness, flexibility and transparency, the FPC uses collaborative, problem-solving approaches to resolve the issues that are inhibiting broad faster payments adoption in this country. For more information, please visit FasterPaymentsCouncil.org.