Created in partnership with Datos Insights, the 2024 report highlights the unique position of mid-tier banks and the investment opportunities available to modernize payment infrastructure
NEW YORK, Dec. 11, 2024 /PRNewswire/ -- Volante Technologies, the global leader in Payments as a Service (PaaS), today announced the release of its fourth annual survey of mid-tier banks.
The report, produced in collaboration with Datos Insights, provides deep insights into how mid-tier banks can accelerate payments modernization to meet growing customer demands and remain competitive in the dynamic financial ecosystem.
Gathered from over 1,250 global banking leaders, the report identifies key trends driving the future of payments for mid-tier banks, defined as financial institutions with between $3 billion and $100 billion in assets. These include the rising adoption of real-time payments, the strategic importance of ISO 20022 compliance and utilization, and the role of cloud and Payments as a Service (PaaS) solutions in payments modernization. Notably, the report shows that in response to these trends, mid-tier banks are planning significant additional investments in payments modernization.
"Strategically positioned between large and small banking institutions, mid-tier banks have an opportunity to transform their complex middle position into an unrivaled value proposition. As corporate customers increasingly demand instant payments, data transparency, and agile financial services to meet growth goals and maintain regulatory compliance, mid-tier banks have the flexibility and resources to modernize, providing specialized, agile, and client-focused services in payments to their customers," said Erika Bauman, Director of Commercial Banking & Payments Practice at Datos Insights.
Key Findings from the Survey:
- Rising Demand for Real-Time Payments: 59% of mid-tier bank customers anticipate increasing their use of real-time payments within the next 12 months.
- ISO 20022 is a Strategic Priority: 62% of mid-tier bank clients already use or plan to adopt ISO 20022, reinforcing the standard's importance for implementing enhanced data capabilities.
- Record-Level Investment: Mid-tier banks report planned investments between $5 million and $20 million in enhanced payments technology, emphasizing the scale and seriousness of modernization efforts.
Mid-tier banks universally reported planned payments modernization investments, with 76% indicating moderate investment and 24% indicating significant investment. However, despite clear plans for the digital transformation of outdated payment infrastructure, survey respondents indicated that execution is often unfocused or delayed, underscoring the urgent requirement for utilizing the right technologies and partnerships.
Cloud and PaaS Technology are Driving Transformation
Cloud and PaaS solutions enable leading mid-tier banks to modernize, scale operations, streamline compliance, and reduce operating costs. Respondents strongly preferred cloud-native, modular solutions that support seamless integration, reducing implementation time and costs. These technologies facilitate real-time visibility into payment flows, automate key processes, and leverage enhanced data analytics, helping expedite transaction reconciliations and unearth insights to enhance liquidity and risk management.
"With record demand for real-time payments and ISO 20022 compliance, investing in payments modernization is no longer optional for mid-tier banks seeking to remain competitive. In the U.S. especially, FedNow® and the RTP® network's rapid adoption, combined with the upcoming Fedwire ISO 20022 migration, underscores the urgency for modernization," said Deepak Gupta, EVP, Product, Engineering, & Services, Volante Technologies.
"Cloud and PaaS will be game-changers for mid-tier level financial institutions seeking to leverage their unique flexibility and resources to modernize infrastructures, allowing them to offer specialized services and unlock new revenue streams," concluded Gupta.
Mid-tier banks possess a unique position and potential to lead in the payments space. With its new Payments Intelligence solution, Volante remains committed to guiding its partners in integrating new advanced technologies, enabling internal innovation, and achieving growth goals.
To download a free copy of the report, visit here.
On behalf of Volante Technologies:
Americas
Julian Byrne
anthonyBarnum Public Relations
Tel. +1 (512) 665-9258
pr@volantetech.com
EMEA
Assyria Graves
Hard Numbers
Tel: +44 7507870214
pr@volantetech.com
assyria@hardnumbers.co.uk
About Volante Technologies
Volante Technologies is the trusted cloud payments modernization partner to financial businesses worldwide, giving them the freedom to evolve and innovate at record speed. Real-time native, API enabled, and ISO 20022 fluent, Volante's Payments as a Service and underlying low-code platform process millions of mission-critical transactions and trillions in value daily. Volante's customers include four of the top five global corporate banks, seven of the top ten U.S. banks, and two of the world's largest card networks. Learn more at www.volantetech.com and linkedin.com/company/volante-technologies.
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