Financial institutions (FIs) and merchants worldwide understand how instant payments and disbursements could change the way customers and businesses operate and disrupt numerous industries such as the gig economy. However, some markets, like insurance and pension that have previously lagged behind on embracing faster disbursement solutions, appear to be stepping up their adoption efforts.
The new Disbursements Tracker highlights how several major players are reinventing the disbursement and payout processes to meet the expectations of businesses and consumers alike.
Around the Disbursements World
In an effort to offer faster disbursement capabilities, several financial institutions (FIs) have joined The Clearing House’s Real-Time Payments (RTP) network. Among the latest was FirstBank, one of the largest privately held banks in the U.S. By joining RTP, FirstBank will be able to offer its customers and business clients access to real-time payment services and the ability to make and settle payments in real time.
Meanwhile, a U.K. bank formed its own real-time payments partnership. The U.K.-based Starling Bank partnered with automated business payment provider Bottomline Technologies to develop the Real Time Payments Express Service. The service will enable businesses and banks to send, receive and monitor payments to other banks in the U.K.
Online sellers are also gaining access to faster disbursements with eCommerce platforms upgrading their payout processes. One such platform is mobile shopping site Mercari, which recently began offering instant payment support solution for its sellers. The service allows users to get real-time access to their sales revenues for a $2 fee. Sellers are allowed to withdraw up to $500 per month instantly with funds deposited directly into their bank accounts.
To find out more news and trends, download the Tracker.
Deep Dive: How Mobile Payments Are Changing Pension Plans
Senior citizens who rely on pension plans also understand the importance of getting fast access to funds. Many pension plans, however, still rely on paper checks to receive their retirement benefits. As younger people begin their careers and plan for the future, demand for digital payment methods for pensions and other retirement services are likely to grow. The Tracker’s Deep Dive explores how mobile apps are digital payout tools are reinventing retirement services.
Putting AI In The Disbursement Driver’s Seat
As if a car accident wasn’t distressing enough, the process of filing an insurance claim can add insult to injury. Once an appraisal is scheduled, consumers are often forced to wait days or weeks for a check to arrive before they can get their vehicle fixed. New solutions like artificial intelligence, however, are being road-tested to enhance the claims process and deliver claims at a faster pace. For the August feature story, Julie Kheyfets, head of North America for artificial intelligence (AI)-driven damage appraisal company Tractable, explains why AI is poised to play a larger role in the insurance claim and disbursement process.
About the Tracker