Bank Payment Systems Still Operate Like CompuServe and AOL

by Mercator Advisory Group 0

From information and communication to music and television, the Internet has helped transform every aspect of our lives. Well, every aspect except banking.

In the last three decades — while our smartphones transported us to the future — our banks got left behind. A three-year study by Viacom’s brand consulting division Scratch revealed that Millennials view banks as irrelevant, out of touch, and in desperate need of a shakeup.

Even though banks and other financial institutions are investing in new channels and core systems, the industry as a whole needs to figure out ways to make payments systems more efficient, effective, and interactive, and with real-time capabilities to allow immediate or almost-immediate settlements. These are attributes that are desired by many of today’s banking customers –particularly Millennials and other tech-savvy consumers — and are often a core requirement on the road to becoming a primary financial institution.

Overview by Ed O’Brien, Director, Banking Channels Advisory Services

To read the full story, go to American Banker

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