As consumer demand for digital banking technology rises, traditional FIs are struggling to keep pace. FinTechs, however, are rushing in to fill this void, leading to a more competitive banking landscape than ever before.

Banks may be eager to embrace digital technologies and compete with FinTechs on their own playing field, but their core banking systems often lack the necessary infrastructure to support such endeavors. Attempts to renovate these core systems are frequently met with high costs and complexity.

One promising solution for improving digital services is the progressive modernization of core systems by supplementing legacy technology with application programming interfaces (APIs). Compared to rebuilding the entire core, this approach is both more cost-effective and less risky, allowing for a strategically phased technological transition.

High fees, slow settlement times and a lack of transparency on traditional payment rails are crippling cross-border commerce, costing businesses that depend on international sales time, money and trust.

By eliminating intermediaries and providing verifiable records via distributed ledger technology, blockchain-based payments offer a leaner, more efficient and more transparent cross-border payments solution.

Top-tier FIs, FinTechs and central banks are all leading bold initiatives to harness blockchain’s potential to electrify cross-border payments and commerce.

P2P payments are widely used by consumers, and most of these apps are provided by third parties like Venmo, Cash App and Zelle. However, consumers are increasingly pushing for FIs to provide these payments directly.

While P2P transactions have proven incredibly popular, there are still many holdouts who cite a fear of fraud and cybercrime as their main barriers to adopting these systems.

FIs are acutely aware of the fraud dangers associated with P2P payments, as well as the potential revenue losses that may result if these risks deter customers. Therefore, implementing advanced technologies such as AI and ML will be crucial to securing P2P transactions and fostering trust among users.

Platforms are responsible for handling the payments of potentially thousands of merchants, each with their own PSPs to accommodate. This can put immense strain on platforms’ IT teams and infrastructure.

Marketplaces and other platforms often find themselves in the same situation as merchants, scrambling to offer all the payment options their customers demand. Payments orchestration can be instrumental in relieving this pressure.

Payments orchestration is also extremely useful for platforms representing nonprofits, unions, religious organizations and other non-eCommerce entities that need to collect and aggregate dues, donations and other payments.

Economic shock waves from fraud lead to a costly cycle, compelling banks and FIs to redirect resources from innovation to immediate threat mitigation. This redirection stalls critical innovation agendas, with profound implications for the financial industry.

Balancing the push and pull between innovating digital banking services and enforcing stringent security measures is a daunting challenge for banks and FIs. Achieving equilibrium, however, is crucial for preserving a competitive edge while maintaining consumer trust.

Security threats are evolving at a rapid rate. The enduring questions are whether banks and FIs can outpace and counteract the tactics of fraudsters while fulfilling the growing consumer expectations for innovative security and convenience.

Instant payments could benefit all reaches of the travel and hospitality industries, as customers enjoy a better experience, companies see higher revenues and workers get faster payouts.

Business travel is a significant revenue driver for the travel and hospitality industries. However, travelers typically cover expenses out of pocket, relying on subsequent reimbursement by their companies. Accelerating this process could be a huge help in alleviating financial strain and improving business travelers’ overall experience.

Although businesses face challenges in adopting new payments technology, savvy travel and hospitality firms recognize the competitive advantage instant payments offer and are seizing the opportunity.

Traditional FIs are increasingly contending with competition from challengers, especially as younger generations look outside their primary banks for certain financial services. In fact, studies show that young consumers favor using a service, card or app from a provider other than their bank for online payments.

New banking systems are often difficult to integrate into existing technology stacks. Despite the integration challenges, many banks are pressing ahead with new embedded finance strategies to expand product offerings and enhance customer loyalty.

Rather than attempting to wedge one-size-fits-all digital solutions into existing technology stacks, banks can embrace a far more agile and future-proof approach. Composable banking allows for seamless integration of best-of-breed components and services from a vast ecosystem of innovative technology partners.

Some of the healthcare industry’s most pressing operational pain points arise from inefficient and outdated payments and claims processes that threaten the industry’s financial health.

As digital transformation continues to make its way into everyday life, the healthcare industry is increasingly ready to explore its potential. Innovators across the industry are tackling inefficiencies and improving patients’ experiences — one payment at a time.

While digital payments can profoundly improve the healthcare industry — from patient experiences to operational efficiencies — they also face resistant challenges, the solutions for which are neither easy to implement nor industry-standard.

PYMNTS Intelligence interviews Misty Meraz, Vice President, Healthcare and Public Sector Payment Solutions at Elavon, on how healthcare organizations can improve patient collections by adopting an omnichannel payments strategy.

Vaulting has been proven to provide a streamlined and convenient payment process while also enabling stringent anti-fraud security measures. Merchants have only just begun to tap its potential to aid in customer retention, better authorization rates and cost reduction.

Vaulting offers considerable cost savings for companies in the long run by leveraging customer data to mitigate potential sources of payment failure. Preserving these revenues — along with the customers they represent — is most crucial to subscription businesses.

Personalized goods and services generate significant revenue for many organizations, including payment providers. Vaulting allows firms to leverage customer data to offer tailored experiences to individual customers.

Workers across the board benefit from on-demand pay, especially those who live paycheck to paycheck and cannot afford unexpected expenses. For many workers, instant payroll is something that should be taken for granted.

Companies are becoming increasingly aware of the demand for real-time payroll and are gradually implementing it in their workplaces. Meanwhile, some workers, growing impatient with their employers’ delays in adopting the trend, are turning to third-party services for real-time access to their earnings.

Financially stable employees appreciate the support they have received on their financial journeys, and organizations have a unique opportunity to offer this support in the form of instant payroll services. Doing so could encourage increased employee loyalty and reduced turnover.