Citizens Commercial Banking: Businesses Nearly Unanimous That Shift to Real-Time Payments Will Transform Commerce
May 23 2019 - 7:00AM
Business Wire
Sixty percent say it will mean the end of
payments by cash and check
Soon you’ll be able to forget about balancing your checkbook –
or even having a checkbook – according to new research by Citizens
Commercial Banking.
According to the bank’s Real-Time Payments Outlook, 90 percent
of businesses expect real-time payments, the super-fast, new
standard in U.S. billing and payment processing that is currently
being deployed, to dramatically transform the way business is done.
Nearly two-thirds said real-time payments, the biggest upgrade to
the U.S. payments system since the Automated Clearing House (ACH)
in 1974, will likely mean the end of cash and check payments and
will usher in a new era of instant transactions, while vastly
improving business cash flow.
“Real-time payments is the most sweeping change to the U.S.
payment system since the 1970s and businesses see this as a crucial
opportunity to modernize their payment practices,” said Michael
Cummins, Head of Treasury Solutions at Citizens. “There are
tremendous advantages in terms of speed and certainty of payments.
Cash flow predictability and payment reconciliation will also be
greatly improved. It will be absolutely transformative.”
The Citizens survey found that more than 75 percent of
businesses still make or accept payments using paper checks and
more than 45 percent still make or accept some payments in cash,
highlighting the scope of the potential transformation.
Under the current payment model, it usually takes a day or more
for checks to clear and money to move from one account to another.
In contrast, payments can be made electronically by a customer
through the real-time payments network and the funds
instantaneously move from one account to another. Information about
the transaction also travels with the funds, so recipients know
where the money is coming from and why.
Other key findings include:
- The real-time payments network is
gaining momentum, with 41 percent of businesses saying they are
currently discussing it with their banks or implementing it.
- In addition to replacing check and cash
payments, 60 percent of businesses said the new network would
improve collection activity and posting to clients’ accounts.
Fifty-nine percent of businesses said real-time payments would help
them manage cash flow more effectively.
- Eighty-two percent of businesses said
real-time payments solves for many of the problems with the current
payment options, such as the gap in time between making or
receiving a payment and when the funds clear. They also noted the
real-time payments network’s ability to reduce fraud, include
payment data with the payment and automate payments more
easily.
For more information about real-time payments or this survey,
please go here. The survey of decision-makers at more than 150
companies nationwide sampled a range of businesses in different
sectors with annual revenue of $10 million to $100 million (37%);
$100 million to $500 million (25%); and more than $500 million
(38%). It was conducted in March and April of 2019.
Citizens is a trusted strategic and financial adviser,
consistently delivering clear and objective advice. The Citizens
Commercial Banking approach puts clients first by offering great
ideas combined with thorough market knowledge and excellent
execution, to help our clients enhance their business and reach
their potential. For more information, please visit the Citizens
Commercial Banking website.
About Citizens Financial Group,
Inc.Citizens Financial Group, Inc. is one of the
nation’s oldest and largest financial institutions,
with $161.3 billion in assets as of March 31, 2019.
Headquartered in Providence, Rhode Island, Citizens offers a
broad range of retail and commercial banking products and services
to individuals, small businesses, middle-market companies, large
corporations and institutions. Citizens helps its customers reach
their potential by listening to them and by understanding their
needs in order to offer tailored advice, ideas and solutions. In
Consumer Banking, Citizens provides an integrated experience that
includes mobile and online banking, a 24/7 customer contact center
and the convenience of approximately 2,900 ATMs and approximately
1,100 branches in 11 states in the New England, Mid-Atlantic and
Midwest regions. Consumer Banking products and services include a
full range of banking, lending, savings, wealth management and
small business offerings. In Commercial Banking, Citizens offers
corporate, institutional and not-for-profit clients a full range of
wholesale banking products and services, including lending and
deposits, capital markets, treasury services, foreign exchange and
interest rate products, and asset finance. More information is
available at www.citizensbank.com or visit us
on Twitter, LinkedIn or Facebook.
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Frank
Quaratiello617.725.5851frank.quaratiello@citizensbank.com
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