Payment modernization: Insights from Royal Credit Union
In a CUInsight-hosted webinar, Jeni Brantner, Vice President of Payments at Royal Credit Union, shared the credit union’s experience with payments modernization alongside Stuart Bain, SVP of Product Management at Alacriti, and Mark Majeske, SVP of Faster Payments at Alacriti. Here are some of the key points discussed.
Royal Credit Union’s modernization journey
Jeni Brantner provided an in-depth look into Royal Credit Union’s strategic roadmap towards payment modernization, which began in 2019. The focus was on simplifying payment processes, enhancing user experiences, and adopting cutting-edge technologies to stay ahead in the industry. This journey required a deep understanding of their members’ experiences and commitment to removing unnecessary complexities. The goal was to modernize their loan payment experience, as well as adopt real-time payments.
Brantner emphasized the importance of partnerships in this journey, stating, “We needed to find solutions and partners that would embrace our vision. We needed them to be equally invested in achievement of continuous improvement and innovation.” This collaboration with tech innovators has been crucial in driving significant advancements in their payment solutions.
Panel insights on payment systems modernization
The panel discussion offered extensive insights into the strategies and challenges involved in modernizing payment systems. Royal Credit Union and Alacriti agreed on the necessity of a robust infrastructure, seamless integration, and proactive fraud management for the successful implementation of new payment solutions.
Stuart Bain noted, “The replacement solution has to involve a huge amount of effort from the credit union or large amounts of capital expenditure, especially if the solution that you select has prebuilt real-time integrations with your core that are proven and can be easily deployed.”
There is also a critical need for proactive fraud management strategies, as fraud evolves alongside payment systems.
The rising importance of instant payments
The U.S. is progressively moving towards the adoption of instant payments driven by consumer expectations for swift and uninterrupted transaction experiences. Instant payment systems offer significant strategic benefits, including elevated member satisfaction and streamlined operational processes. By adopting instant payments, financial institutions can enhance their service offerings, reduce transaction times, and improve overall efficiency. The increasing volume and value of transactions processed through real-time payment networks show the strong consumer preference for these services, making them essential for those financial institutions aiming to remain competitive.
Brantner shared Royal Credit Union’s approach, saying, “We chose to move forward because it allowed our members to receive money instantly. And it gave us a test of how the system worked.”
Operational impact and lessons from implementation
The implementation of new payment systems significantly impacts an organization’s operational framework. Brantner revealed various operational transformations and challenges faced throughout their journey towards modernizing their payment infrastructure. “Our implementation went very well. We were up and running in under three months,” said Brantner. “We really didn’t have many hurdles, but here are some things to consider that we did learn either during or after our implementation.” Lessons learned included the importance of 24/7 support, educating member-facing staff on the benefits of new solutions, and allowing adequate time for system updates by partners.
Choosing between the RTP® network and the FedNow® Service
A pivotal choice facing many financial institutions today involves selecting between the RTP® network and the FedNow® Service. Both platforms facilitate robust capabilities for executing real-time payments, and provide similar functionality.
“We didn’t need to worry about which merchant or service implemented which rail,” Brantner noted. “Adding both services caused no delay in timeframe and very minimal extra work for implementation.”
Majeske stressed that the decision depends heavily on an institution’s specific needs, the demographics of its customers, and overarching strategic objectives.
The webinar concluded with a reminder of the importance of understanding the why behind instant payments and finding partners equally invested in an institution’s future. Brantner summarized, “My greatest suggestion for anyone in the consideration stage for instant payments or any other change is to understand their why and that they take the right steps to find a partner that can fulfill their needs, both for this and for their future desires.”
To learn more from Royal Credit Union, watch the full webinar, Payments Modernization: Lessons From Royal Credit Union.
Alacriti’s centralized payment platform, Orbipay Payments Hub, provides innovation opportunities and the ability to make smart routing decisions at the financial institution to meet their individual needs. Financial institutions can take full ownership of their payments and control their evolution with ACH, Wire, TCH’s RTP® network, Visa Direct, and the FedNow® Service, all on one cloud-based platform. Alacriti’s Orbipay EBPP is a customizable electronic billing and payments solution for businesses and financial institutions of all sizes. Orbipay EBPP offers convenient and flexible choices that include all the payment channels, payment methods, and payment options expected from a modern digital bill pay experience. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
