Immediate Payments Tops Industrys Technology Wish List, TD Bank Survey Finds

Originally Published by TD Bank.

Technology continues to drive innovation in the commercial payments sector, according to a recent survey of finance and treasury professionals conducted by TD Bank, America’s Most Convenient Bank. Real-time payments is leading change, as nearly half of respondents (42 percent) cited integration of these capabilities within online banking as the technological innovation that will have the greatest positive impact on the industry over the next three to five years.

Payments professionals also predict artificial intelligence and machine learning will create positive change (20 percent) in the industry, while more advanced technologies such as blockchain (11 percent) or biometrics (4 percent) are not yet at the forefront.

TD’s survey collected responses from 390 finance professionals on industry trends and outlook at the 2018 NACHA PAYMENTS Conference in San Diego, California, in May.

Innovation Forces Infrastructure Upgrades

With improved technology comes the need to revamp outdated frameworks. Respondents were not shy to call out the need to refresh internal infrastructure systems as the main roadblock to success in implementing digital payments strategies. When asked about their greatest challenge in payments innovation, more than one-third (36 percent) of respondents stated the need for corporations and/or smaller banks to update legacy infrastructure to support these functions.

Payments professionals expect their financial institutions to evolve as well. An overwhelming majority said that integrating a mobile application for business banking would improve a company’s experience with its financial institution, according to 74 percent of respondents.

“One of the largest impediments to today’s payments industry is that change is happening faster than organizations can realistically accommodate it,” said Rick Burke, Head of Corporate Products and Services, TD Bank. “Sending and receiving corporate payments is a complex process and one that it is not yet as nimble as consumer payments. As more CFOs and treasurers use immediate payment schemes in their personal financial transactions, the demand for commercial availability will also rise, and financial institutions and businesses need to be prepared to accommodate that expectation.”

Professionals Remain Vigilant; Wary of Cryptocurrencies

Payments experts hold a strong view against the validity of cryptocurrencies, despite the hype around the topic in the media. In fact, the majority (64 percent) of survey respondents noted that they do not view cryptocurrencies as a legitimate form of digital payment. Despite this, just 4 percent selected controversy around cryptocurrencies as the greatest challenge facing payments innovation today.

Cybersecurity and payment fraud remain a top concern for payments professionals but saw a slight decline in the survey results. This year, 84 percent of respondents stated that payments fraud will become a bigger threat in the next one to two years, compared with 91 percent of respondents in 2017.

This drop could indicate that companies are gaining confidence as they prioritize and invest greater resources in cybersecurity prevention and preparedness. Further supporting this idea, 9 percent of respondents noted that cybersecurity software will have the greatest positive impact on the payments industry over the next three to five years, potentially indicating that payments professionals may finally be seeing some positive developments in the area of cybersecurity.

Survey Methodology

TD Bank polled finance professionals at the 2018 NACHAThe Electronic Payments Association PAYMENTS Conference in San Diego and via the organization’s mobile app on April 30 and May 1, 2018. A total of 390 responses were collected from industry professionals, including payments system stakeholders from business end-users, and financial and technology services organizations.

Latest News

Yolanda King

13-Year-Old Granddaughter of MLK, Yolanda Renee King, Calls for ‘Work’ and ‘Action’

On what would have been the late civil rights icon’s 93rd birthday, Martin Luther King Jr.’s 13-year-old granddaughter Yolanda Renee King proudly stood in his place, speaking out to a crowd of supporters and actively calling for all of us to continue the work her grandfather started. Maya Eaglin of…

Navient Corporation

Navient Agrees to $1.7-Billion Settlement for Abusive Lending Practices Impacting Thousands of US College Students

The price of a college education continues to be a stumbling block to many across the country. According to the Education Data Initiative, an estimated 43.2 million individuals are currently paying off loans with an average value of more than $39,000. Of that group, Black students and college graduates are…

Michele C. Meyer-Shipp

People on the Move: Michele C. Meyer-Shipp, New CEO of ‘Dressed for Success Worldwide’

Dress for Success Worldwide, the global nonprofit organization designed to empower women to succeed in business by providing a network of support, professional attire and personal development tools, has announced a change in its executive leadership. Michele C. Meyer-Shipp will become the new CEO of the organization, succeeding Joi Gordon. …

statues, MLK, king

Celebrating 5 MLK Statues, Memorials and Significant Locations Across the Country—All Worth a Visit

A crucial part of Dr. Martin Luther King Jr.’s work in the Civil Rights movement was protecting voting rights. Instead of MLK Day celebrations this year, the leader’s family is spearheading a supportive push towards voting rights reform across the country. Statues honoring Dr. King’s activism and messages pay tribute…