Mortgage Lending Gets Its Digital, Real Time Payouts Makeover

Nowhere is the digitization of disbursements more important than payroll. Businesses can also reap benefits in terms of efficiency and reliability with digital, cloud-based payroll systems. In a competitive talent acquisition market, having a reliable payroll system can help with recruitment, and it also plays a significant role in employee retention. A cloud-based payroll system can free up human resources personnel to focus on other tasks that further impact employee satisfaction.

Employees are not the only ones who value being paid on time. Vendors often face serious cash flow problems when other businesses do not pay them on time, and small businesses are particularly affected by this pain point. Small businesses play minor roles in the economy individually, but a big one collectively. Many would pay off loans faster, hire more employees and make other investments into their businesses if they could get paid faster and more reliably by the larger businesses they provide products and services for.

In the January Expanding Payments Choice Playbook®, PYMNTS explores how faster disbursements are poised to reverberate across the economy, spur growth and continue to reshape the digital payments space in the years ahead.

Payments Choice Developments From Around the World

Digital wallets are making significant headway toward broader adoption. With 7% growth in 2020, eWallets are expected to account for approximately half of all eCommerce transactions by 2024. Additionally, debit and credit cards, though often the underlying funding options for other payment methods, could be on the way out as a primary payment choice. Along with QR code- and account-based payments, eWallets and other emerging digital payment trends are set to supersede card-based payments in various markets.

The consumer market is not the only sector digital transformation is disrupting. Sixty-one percent of all payroll solutions were already cloud-based in 2020, with 40% of companies planning to modernize their payrolls by 2023. Cloud-based payroll solutions offer multiple benefits, not the least of which is ensuring businesses do not run afoul of regulatory requirements when companies are struggling to find experienced payroll workers. Digital payroll solutions remove some potential for human error while freeing up those employees to spend more time on other tasks.

For more on these stories and other digital disbursements developments, check out the Playbook’s News and Trends section.

Why Improving the Mortgage Experience Requires More Than Fast Disbursements

Digital disbursements help make the final payment happen faster, but the entire process of acquiring or refinancing a mortgage can take months with traditional, paper-based systems. In this month’s Feature Story, Ziggy Jonsson, head of financial products at online lender Better Mortgage, talks about how digitally transforming the entire homebuying experience could not only make the process less frustrating, but also help borrowers find an edge in a competitive housing market.

Deep Dive: How Businesses Are Addressing Challenges to Enabling Fast, Digital Disbursements

The continued adoption of various digital instant payment methods fuels the expectation that fund transfers will happen with little friction or delay at all levels of the economy. That expectation can leave customers, employees and business partners dissatisfied when a company does not offer payment options. This month’s Deep Dive looks at how the ongoing move toward faster digital disbursements and payments is shaping everything from insurance to payroll.

About the Playbook

The Expanding Payments Choice Playbook®, done in collaboration with Onbe, is your go-to monthly resource for updates on trends and changes in digital disbursements.