Payments Innovation AllianceUS Faster Payments Council

How to Develop Your Faster Payments Strategy

Responsibilities of the Team

  • Review the environmental assessment
  • Agree on the analysis to make your judgements as a team
  • Interpret the information you have gathered

Assemble an Internal Team

Think about the different areas identified in the environmental assessment and determine which areas should participate and why

  • Business Innovations
  • Compliance
  • Finance
  • IT
  • Legal
  • Lending
  • Marketing
  • Operations
  • Product Management
  • Risk
  • Sales
  • Training
  • Treasury Management

* This list may not be all inclusive. Look within your own organization to determine what is appropriate.

Steps to consider when assembling an internal team

  • Determine who will take the lead in implementing the strategy
  • Decide the roles and responsibilities of team participants
  • Make sure team members have the right level of authority and subject matter expertise
  • Obtain executive management buy-in and/or participation as appropriate for your organization
  • Agree upon team expectations, determine how the team will be held accountable, and communicate the process and reporting methods within the team and to executive management
  • Develop a project charter to encourage team discipline.(link to sample of charter)

Review the environmental assessment

  • Assess the marketplace and competitive analysis (SWOT)
  • Set the landscape
  • Articulate internal needs and the needs of both current and targeted customers

    • What are your organization’s current and future needs?
    • Who are your current customers and what are their current and future needs?
    • Who are the new customers your organization wants to attract and what are their current and future needs?
    • Questions to consider

      • What are you doing today with existing payment systems?
      • If you have a payments strategy already, how will faster payments fit in?
    • Consider if your organization’s payments are outgoing versus incoming (payables and steps receivables/ODFI and RDFI)

Agree on the Analysis

  • Determine to incorporate faster payments (or not)
  • The benefits and opportunities in moving forward:

    • Be relevant and competitive
    • Retain current audience and grow new base
    • Potential new products
    • Operational efficiencies
    • Be ready to launch faster payments when needed
    • Better ability to serve specific use cases
    • Stay central to your customers' payment needs

Interpret the Information

  • What are the consequences if your organization does not change?
  • Reactive response
  • Reputation risk
  • Start now because it takes time to be ready for market
  • Your competitors won’t wait
  • New types of competitors
  • Keep up with the times and the evolving customer base
  • Most likely won't continue to grow deposit base, and may lose it entirely
  • Customer base and/or industry may ask why your organization is not able to keep up with fintechs or other financial institutions
  • Competitors might go beyond traditional FIs, online FIs, Fintechs, etc.

Outline strategy

  • Where does your organization want to go next?

    • Solutions you want to support and offer to your customers
    • Functional business requirements
    • Timeline and milestones
    • Identify success criteria and metrics to evaluate strategy

Build or Buy?

  • Engage vendor on available offerings

    • Consider other vendors if necessary
  • Consider costs. Is it less expensive to buy versus build?
  • Consider timing. Is it faster to use existing versus building?

    • Evaluate timing considerations. Even if your organization is not acting right now, lead time is still needed

What are the high-level considerations to move forward?

  • How does your organization get ready to offer faster payments?
  • Tighten up policies and procedures
  • Review faster trends

Review and refine strategy outline

  • Solutions your organization wants to support and offer to your customers
  • How you will execute given inputs and considerations identified earlier
  • Timeline and milestones
  • Identify success criteria and metrics to evaluate strategy
  • Short and long-term actions