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Citibank leads in real-time payment services as digital banking evolves

EditorNikhilesh Pawar
Published 2023-11-15, 10:20 a/m

NEW YORK - As the financial industry continues to evolve, a recent report highlights the growing importance of quality digital services in banking for enhancing customer satisfaction. Susan Foulds from Keynova Group emphasized the crucial role that fintechs and retailers play in driving the adoption of real-time payments (RTP), with Citibank at the forefront of offering these services through the Online Banker Scorecard.

In the competitive landscape of digital banking, Citibank's leadership in RTP is noteworthy as it provides customers with immediate and secure payment options, a feature increasingly demanded by consumers. Meanwhile, Zelle, the third-party payment system utilized by a majority of banks (88%), currently has lower transaction limits compared to RTP and the forthcoming FedNow Pilot. Nonetheless, there is a shift happening within the industry, as 55% of banks have responded to customer needs by raising Zelle's daily transfer limit to $2,500.

Alongside advancements in payment technologies, banks are also focusing on personalization and account aggregation to enhance Personal Financial Management tools (PFMs). These tools are becoming more sophisticated, offering users detailed spending reports that range from basic cash flow charts to more intricate categorizations and visual representations of their financial data. Notably, half of the banks provide PFMs that allow access to 12-24 months of transaction history.

Furthermore, 44% of banks now support linking external accounts, which enables customers to have a more comprehensive view of their spending habits across different financial institutions. This capability is coupled with features that permit users to modify categories or set rules for future transactions, adding another layer of customization to their financial management.

A select few banks, including industry giants like Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC), are distinguishing themselves by offering cross-border electronic payments or wire transfers. These services cater to customers with international financial needs and reflect an increasingly globalized customer base.

The ongoing enhancements in digital banking services underscore the sector's commitment to meeting customer expectations for convenience, security, and personalization in managing their finances. As technology continues to advance, banks are likely to keep innovating to provide customers with state-of-the-art digital experiences.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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