NEW YORK, Sept. 27, 2021 /PRNewswire-PRWeb/ -- New Arizent Research for American Banker, sponsored by Alacriti, The Future of Financial Services 2021, finds consumers are increasingly expecting fast money movement in all parts of their financial lives. As financial services continue to evolve, and money movement speeds become faster, the need to understand consumer demands and expectations becomes more critical for driving success for financial services organizations, as well as the vendors that enable them.This report analyzes the impact of what happens when financial organizations meet consumer expectations on fast money movement. It also highlights potential threats on the horizon that indicate consumer demand for faster money movement is only going to accelerate in the future.
The speed of money movement is an essential ingredient to customer satisfaction and increases the likelihood of consumers continuing to do business with that institution. FIs need to invest in creating and delivering products and services that can leverage faster money movement speeds, as well as improve processes that cut down the time it takes to open and fund accounts and transmit funds to customers.
Slow money movement has a negative impact on FIs as consumers abandon transactions and find better options to send their money quickly. About 21% of consumers reported that they have abandoned a financial transaction because the speed of money movement would take too long, with higher rates among the employed, high income earners and primary financial decision makers.
The strong interest in faster paycheck access offered by challenger banks is an example of how new fintech solutions could pose a major challenge to existing FIs through an increasing demand for faster money movement. Overall 70% of consumers would be interested in faster paycheck access (defined as by up to two days earlier), with 82% of Gen Z and 78% of millennials being interested.
The results and implications of this survey are covered in stories today in several Arizent publications, including:
The Future of Financial Services 2021, American Banker: https://www.americanbanker.com/research-report/the-good-bad-and-ugly-about-fast-money
The Future of Financial Services 2021, National Mortgage News: https://www.nationalmortgagenews.com/research-report/the-good-bad-and-ugly-about-fast-money
The Future of Financial Services 2021, Financial Planning: https://www.financial-planning.com/research-report/the-good-bad-and-ugly-about-fast-money
The Future of Financial Services 2021, Digital Insurance: https://www.dig-in.com/research-report/the-good-bad-and-ugly-about-fast-money
Arizent conducted this survey to explore the impact of faster money movement on the future of financial services—what it means for those who are able to deliver and what it means for those who don't—as well as the growing threats to traditional legacy organizations as consumer demands continue to grow and evolve. The survey was conducted online in the U.S. with 941 adults, ages 18-74, during June 24 – July 15, 2021, and is reflective of the general population based on a number of demographic factors including race, gender, etc., as well as U.S. geographic regions
For more information on this survey or other Arizent research, contact:
Vice President, Research
About Arizent Research
Arizent delivers actionable insights through full-service research solutions that tap into their first-party data, industry SMEs and highly engaged communities across banking, payments, mortgage, insurance, municipal finance, accounting, HR/employee benefits and wealth management. They have leading brands in financial services including American Banker, The Bond Buyer, Financial Planning and National Mortgage News, and in professional services, such as Accounting Today, Employee Benefits News and Digital Insurance. For more information, please visit http://www.arizent.com
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
Alacriti is a leading financial technology company dedicated to helping financial institutions and businesses accelerate their digital payments transformation, all without requiring legacy system overhauls or replacement. Alacriti's Orbipay Unified Money Movement Services delivers solutions across the payments ecosystem. Whether it's real-time payments, digital disbursements, or bill pay, our cloud-based platform enables banks and credit unions to quickly and seamlessly deliver modern digital payments and consistent money movement experiences. To speak to an Alacriti payments expert, please call us at (908) 791-2916 or email [email protected].
Janet King, Arizent, 207-807-4806, [email protected]