June 15, 2021
We cannot become what we need to be
by remaining what we are ~ anonymous
The country is not living at warp-speed yet, but today’s need-for-speed influences many of our activities: Internet speed, mobile connectivity, automated payments, buy-now-pay-later, fast foods, instant messaging, zoom meetings, in-home movies, speed dating, 5-minute pizzas, supersonic jets, etc. The Internet has turned us into speed-and-convenience seeking consumers with very little patience, unable to tolerate delays in our digital world, inevitably spilling over into our retail world. This type of demanding mindset is influencing The Clearing House’s (TCH) enormous effort to drive the global adoption of same day ACH and real-time payments (RTP). Plus, the pandemic’s restrictive environment has demonstrated the need for RTP which, according to TCH, takes 3 seconds from transaction to receipt of funds.
Since 1853, TCH has become the central clearing institution for the banking industry while owned by the world’s largest commercial banks. They formulate the current payment systems that banks have adopted through the years like checks and electronic payments, with the intention of building the payment systems of the future, specifically digital payments. The Clearing House is putting all its eggs into the real-time payments basket which will force financial institutions and other providers to build an infrastructure around the new powerful payment.
Having read an insightful article on Getting Real about Faster Payments by Patti Murphy, May Green Sheet, the data outlined below will reflect her research:
- 3B real time account-to-account payments processed globally in 2020, 41% up since 2019
- S. 1.2B RTP last year, 9th in world, behind Brazil, India, China, UK
- February 2021, Zelle, a P2P network, combined with RTP sending instantaneous money using the recipient’s mobile # or email
- Zelle and RTP will expand services to businesses for customer bill payment, Venmo and Dwolla will follow
- As opportunities flourish with small businesses, various card payments will be replaced with RTP reducing the interchange revenue paid by merchants
- DraftKings and PartyPoker recently offered immediate payouts thru Mazooma and banked into Fifth Third player accounts
- Instant payroll and insurance payouts have hopped the transition money train to RTP
The adoption of RTP offers huge opportunities for companies to offer simple, transparent, immediate payments in a financial world that is going to be upended if it doesn’t jump on the RTP money train. According to FINRA “Americans are approximately $12.58 trillion in debt,” so who knows, maybe paying with real money instead of plastic will reduce our individual and nation’s outrageous debts. Woo, Woo!
Shawn Princell, CEO of RIBBIT.ai was chosen to lead the development of NACHA’s Faster Payments Professional (FPP) certificate program. This innovative program will give payment professionals a universal vision of faster payments with an emphasis on Same Day ACH and RTP. Princell comments that “earning the FPP credentials will give graduates a unique status, branding them as experts in the faster payment’s arena.” All Aboard!
Stay tuned . . .
Former FactorTrust Founder/CEO, Greg Rable, Joins RIBBIT Board of Directors
OXFORD, Ohio, April 12, 2022 /PRNewswire/ — Today, RIBBIT Inc. announced the appointment of Greg Rable to the RIBBIT Board of Directors. As the former Founder/CEO of FactorTrust, since acquired by TransUnion in 2017, Greg brings over 25 years of management and strategy experience, combined with a history of building successful fintech and alternative data businesses for the consumer finance space. In his role, Mr. Rable is helping guide the RIBBIT leadership team and promote the growth of bank behavior data as a powerful and necessary predictive data solution.
Getting Real with Financial Inclusion
Financial inclusion matters not only because it promotes growth, but because it helps ensure prosperity ~ Sri Mulyani Indrawati
How arbitrary are the words ‘financial inclusion’; who’s in, who’s out and why is it so unfair? If a consumer is ‘in,’ there are financial opportunities for building a better life. If a person is ‘out,’ good luck with climbing out of a deep money pit. Today’s financial institutions think they are building a more inclusive process. However, many are still using information reflective of historical bias so if it didn’t work then, it ‘ain’t gonna work now’.
Why Interpretation of Data Matters
When a man gives you a rose, what you see may not be what he intends~ Patrick Rothfuss
Assessing information is the foundation of most of life’s important decisions. Mistakes are made when the data is unavailable, unclear, inaccurate, insufficient, immaterial, or unjust. How many people have suffered throughout history by poor decision-making? Like it or not, today’s world is data driven, hopefully an information mecca for making insightful, educated, proven and unbiased decisions. However, data is just that, information on a page, it becomes meaningful only when it is wisely analyzed and interpreted.