The Future of Payments

31 BANKING PERSPECTIVES QUARTER 4 2018 RTP can co-exist with other instruments, such as ACH and wire transfers. For BB&T, it’s about providing clients with the tools that offer flexibility in mixing and matching payment methods so each payment instrument uses the settlement method that’s best for both the buyer and supplier. We also realize users are attached to their current payments solutions – customers have been using them for years, and they are proven and reliable. To introduce a new payment solution, the benefits have to be clear and compelling from the start. RTP clearly offers immediate value and will enable clients to reconceptualize how they engage their trading partners, customers, and employees. Businesses will have a new way of interacting with customers and meet their needs more precisely by leveraging the best available payment option. RTP WILL FUNDAMENTALLY CHANGE BUSINESS For most businesses, payments currently move through a systematic and defined process that has followed the same slow, steady schedule for decades. With RTP, corporate treasury units have a new option to accommodate funds transfers that move at unprecedented speeds, giving corporate clients the means to optimize their working capital and improve visibility into cash positions in a secure, efficient manner. And with this process change and speed, RTP has the potential to create better opportunities for corporations to interact with clients. But the adoption of RTP is a step-by-step process that treasury units and banks must take together. This process must always begin with a deep understanding of the unique needs and characteristics of each company’s payment system. Businesses implementing RTP need to begin by considering what their current systems look like, what their needs are, and which payment method can best accommodate each of those needs. RTP is one of several payment methods that will need to be woven into consolidated accounts payable and accounts receivable systems. THE ADOPTION PATH FORWARD: MORE THAN SPEED With the introduction of RTP, some of our clients see these RTP discussions as an opportunity to reevaluate the entirety of their end-to-end systems. They’re looking to invest in technology upgrades to fully integrate RTP into their enterprise resource planning system and develop back-end functionality to support the rich data around their existing systems and processes. However, typical treasury units don’t have the resources or budget to undertake a fundamental transformation from the ground up. They must figure out how to overcome the obstacles within their own offices. By RTP’s very name, it’s easy to conclude that speed of funds settlement is an inherent benefit of the system. It’s not just a payment system but a secure real-time conversation between parties. The thoughtful design includes many other features that result in improved business processes, allowing our clients’ payments to catch up with the way With all the industry excitement about the introduction of faster payments technology in the United States, many financial managers are asking fair questions about how to prepare and adopt. For BB&T, it’s about providing clients with the tools that offer flexibility in mixing and matching payment methods so each payment instrument uses the settlement method that’s best for both the buyer and supplier.