Money Mobility Tracker – August 2022
August 8, 2022
How significant is money mobility between accounts, and why?
Money mobility is now the default customer expectation for any financial account.
With 69% of consumers banking through a mobile app and 81% saying a fast, easy payment experience makes them think better of a brand, money mobility has fast become a critical tool for customer growth, engagement and retention.
Whether receiving money, paying a friend or moving money between apps like PayPal and Robinhood, consumers and small businesses trained by the modern smartphone era want their money instantly and safely in the account of their choosing. It affords them maximum spending power and flexibility — key advantages in a time of economic uncertainty.
The evidence for this shift is everywhere. Ads for gambling apps, insurance companies and more all promise instant payouts because it gives them a competitive advantage. Companies that cannot meet these expectations risk losing out in the battle for customer share of wallet.
Importantly, to fulfill these consumer expectations, companies should consider a FinTech partner that can handle all the connection, reconciliation, compliance and security requirements that make up a money mobility solution. Often, the level of investment and time needed to manage these capabilities are prohibitive. Outsourcing to a preferred partner allows companies to quickly deliver on their customer promise with less cost and risk.
How can neobanks and FinTechs stay at the cutting edge of money mobility, and how significant will that be?
It is imperative that neobanks and FinTechs remain on the leading edge of money mobility. Consumers and small businesses now expect it — and have been vocal about it being a key consideration when selecting a financial provider.
But many companies new to money mobility underestimate the resources required to build and maintain the services that enable frictionless money movement into and out of accounts. It demands an enormous investment of time and money to properly manage network connections, compliance and security requirements, back-end reconciliation and more. And just when you think you have it all solved, network connections break or new ones become a priority.
Unfortunately, money mobility services also mean a heightened exposure to risk. Fraudsters are increasingly targeting inbound digital account funding from third-party accounts and providers. And the instant, ready-to-spend nature of funding places a premium on effective fraud detection and prevention because funds cannot be clawed back.
For most neobanks and FinTechs, this makes the calculus easy: Partnering with a money mobility provider delivers faster time to market, reduces risk and operating costs and allows them to focus on their core business.
CEO at Ingo Money
Table of Contents
- EDITOR’S LETTER
PYMNTS’ Thought Leadership Team on how account providers can effectively address consumer expectations for money mobility ubiquity while still managing risk
- FEATURE STORY
An interview with Andrew Jamison, CEO and co-founder at Extend, about the company’s virtual card product and how it creates efficiencies for corporate expenses and accounting
Insights from Drew Edwards, CEO of Ingo Money, on the need for money mobility between accounts and the importance of maintaining a money mobility edge
- NEWS AND TRENDS
The latest headlines from around the money mobility space, including how mobile banking features are driving consumer account opening preferences and how small businesses are using P2P payment apps as a shortcut to offering more payment options
- PYMNTS INTELLIGENCE
An in-depth look at the challenges facing account providers in keeping up with consumer demand for ever-improving money mobility and how partnerships can benefit them
// Related Resources
Money Mobility Tracker – November 2023 Fast-Lane Finance: Accelerating Payments in the Trucking Industry
55% of Trucking Companies Emphasize AP Innovation as a Crucial Goal
Money Mobility Tracker – Series Report Tap and Tip: Travel and Hospitality Embrace Digital and Instant Payments
A growing number of consumers are turning to digital tools and payments to facilitate their travel plans.
Money Mobility Tracker – July 2023 The Rise of Instant Payroll and Early-Access Compensation
94% of Canadian Workers Would Seek New Jobs if Pay Was Delayed