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Payments made easy for US banks (and MNCs too??)

Keeping up with the ever-changing payment standards and new payment solutions is a problem for even the largest banks and specialist suppliers of payments services, e.g. service bureau. Not only this many smaller banks also have problems with the volume of work involved in on-boarding their corporate clients onto these new standards and services particularly with the instant payment services being introduced in the USA.

No wonder that Volante Technologies Inc. have a new offering which combines corporate to bank connectivity, onboarding, and end-to-end payment processing in a cloud-based managed service

Volante’s new service

The new offering from Volante combines corporate to bank connectivity, corporate onboarding, and end-to-end processing of all U.S. domestic and cross-border payment types in a unified on-demand cloud service. In doing so, it addresses two of the most significant challenges for U.S. financial institutions: 74% of banks cite slow onboarding and complex integration as the single biggest obstacle to achieving their corporate customer acquisition goals, and four of five corporates express willingness to switch to banks that provide more effective customer-centric services.

VolPay corporate to bank automation 

Source & Copyright©2019 - Volante Technologies

To accelerate corporate onboarding, the service simplifies the complexity of handling diverse corporate ERP and acknowledgement formats and automates the process of connecting corporate customers to their institutional payment service providers through a comprehensive API library. To facilitate efficient end-to-end processing of payments, the service handles all U.S. payment types including Fedwire, ACH/Same Day ACH, Zelle, and TCH RTP clearing and settlement, as well as SWIFT cross-border payments. With all these capabilities available in one 24x7 real-time managed service, U.S. financial institutions can now simultaneously enrich the customer experience, speed time-to-market, and reduce total cost of ownership by nearly 40 %.

Solves two major problems

Being a payment system provider can be very frustrating when, after working hard to develop a new standard or service, then the banks don’t have the technology to adopt the new standards or the on-boarding capacity to sign many corporates up, so the adoption rates can be really slow at best. So it is no wonder that:

  • “NACHA welcomes the introduction of new services that will facilitate increased adoption and use of ACH, Same Day ACH and ISO 20022 messages within the U.S. financial services ecosystem,” said Jane Larimer, chief operating officer of NACHA. “As-a-service models are an efficient way to enable the smarter, faster payments capabilities that financial institutions desire to support the evolving needs of their corporate customers.”
  • While Christine Barry, Research Director, Aite Group, concurred, “A cloud implementation can provide greater accessibility to complex technology solutions without many of the expenses that come along with an on-premises implementation. As confidence in the security of the cloud—private, public, and hybrid—continues to increase, Aite Group anticipates greater adoption in 2019 by banks of all sizes. Not only are large banks investing heavily in cloud technology, but small banks are also following suit.”

Speed of implementation

For banks Implementation times vary considerably across bank sizes: typical on-premise payments transformation projects can take 12 – 18 months for a large bank, 6-9 months for a medium size bank, very few projects can be done in less than 6 months because of the lead times required for banks to design and build their infrastructure

With Payments as a Service, those timelines can be collapsed to as little as three months/90 days for many banks; and six months on the outside for complex situations which implies reductions anywhere from 35% to 75% depending on the comparative starting point.

CTMfile take: Adding new efficient links to the growing number of payment systems is complex and even specialists like Fides use Volante. For large MNCs, Volante could be a solution that might preserve your bank independence??

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