Financial institutions and challenger banks are building payment strategies which include multiple faster payment methods however the strategies traditional banks deployed look very different than the newer market entrants. Financial institutions’ payment strategies are treating new ways to pay as requirements while challenger banks look at faster payments as differentiators. To move towards a more progressive payment strategy, financial institutions need to understand where the bias of traditional banking is impeding their ability to expand their market position.
The example provided in this report focuses on the diversity gap of payments and Black Americans, however financial institutions should evaluate payment strategies across a broad spectrum of consumers. Race, ethnicity, gender, age, technology sophistication, financial stability, and other segments require different payment strategies. This report helps focus on how consumer groups can be evaluated to diversify ways to pay and expand the market share of the financial institution through accessibility.
Key questions discussed in this report:
- Why are faster-payment strategies crucial to a financial institution’s market position?
- What competitive threats do financial institutions face if they do not adopt inclusive payment strategies?
- How do financial institutions overcome diversity bias when building a faster-payment strategy?
The payment product ownership data was collected in June 2020 from 6,000 consumers. The digital banking survey was conducted online with a margin of error at +/- 1.27%
The data in the report associated with P2P usage was collected in May 2020 from 3,000 U.S. consumers. The consumer payment survey was conducted online with a margin of error at +/- 1.79%.