Originally posted on NAFCU.org
As this whirlwind of a year drawls to a close, it’s natural to pause and look back to reflect on where this year started and where we are today. We’ve had highs in more ways than one (hello inflation and interest rates), shocking lows (goodbye Silicon Valley Bank), and a plethora of hot topics to fill in between. As you continue to strategize for next year, review some of the top topics from the credit union industry in 2023 so you can start the new year with might and main.
- Buy Now Pay Later (BNPL)
The BNPL industry will exceed $1.2 trillion by next year, so chances are, your cardholders are already doing BNPL. This indicates an enormous shift away from traditional lending. But financial institutions have an opportunity here: a positive opportunity to contribute to the narrative, not to mention, gain interchange revenue and deposit growth opportunities that could make up for reduced debit and credit card usage.
FI’s that partner with a BNPL vendor that specializes in buy-now-pay-later transactions have a chance to play on the BNPL turf now and can bring safer transactions, fraud monitoring, and accountholder education to this space in a substantial way. - FedNow® Service
The FedNow® Service went live on July 20, 2023 and is accessible to depository institutions in the United States. This service enables individuals and businesses to make instant payments through their depository institution accounts. Here’s what you should know about the FedNow Service features:
- Real-time clearing and settlement: The service facilitates near real-time interbank clearing and settlement, allowing funds to be transferred from a sender’s account to a receiver’s account. (Continue reading at NAFCU.org)