This is an excellent enumeration of the many operational issues that come with anything 'real-time'. I still do suspect that the solving these broadly will depend on RTP/FedNow broadening use cases. I am still convinced that there are only a few very discrete adoption cases like real estate closings outside of fed hours and immediately available wage/benefit payouts, etc.
If (and when) real-time payments can meaningfully cannibalize the "venmos" for C2C and maybe even cards for C2B - only then the impetus to address the issues you listed will be there.
I actually think it's somewhat of a chicken and egg problem, you can't quite address those use cases without these operational capabilities, but as you said the impetus isn't there without the desire to expand into those products. But I think market forces are already pushing banks to expand these capabilities.
It feels like we've spent years talking about how to move money faster. Now that the infrastructure is catching up, the harder question may be how organizations adapt around it. The technology can change pretty quickly. Operating habits usually don't.
This is an excellent enumeration of the many operational issues that come with anything 'real-time'. I still do suspect that the solving these broadly will depend on RTP/FedNow broadening use cases. I am still convinced that there are only a few very discrete adoption cases like real estate closings outside of fed hours and immediately available wage/benefit payouts, etc.
If (and when) real-time payments can meaningfully cannibalize the "venmos" for C2C and maybe even cards for C2B - only then the impetus to address the issues you listed will be there.
I actually think it's somewhat of a chicken and egg problem, you can't quite address those use cases without these operational capabilities, but as you said the impetus isn't there without the desire to expand into those products. But I think market forces are already pushing banks to expand these capabilities.
Interesting article.
It feels like we've spent years talking about how to move money faster. Now that the infrastructure is catching up, the harder question may be how organizations adapt around it. The technology can change pretty quickly. Operating habits usually don't.
Definitely. And operating capabilities lag behind.