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Banker, processor, and biller panels explore trends, challenges, and opportunities Frank discussions offer sweeping views of industry and its future On the symposium's second day, three groups of stakeholders in the electronic bill payments industry—bankers, billers, and processors—each took the stage for panel discussions on topical issues, moderated by industry experts. 
Banker panelThe bankers' discussion began with the consideration of a question that generates ongoing debate in the industry: Should banks pursue an in-house least-cost routing (LCR) solution, as the three panelists' banks have done, or outsource to a processor? The conversation that followed touched on the need for each institution to
The group also discussed the factors that keep consumers from using the system, including demographics (nontechnical individuals), security concerns, and less than optimal online experiences. Looking to the future, the panelists see more premium services (e.g., same-day, guaranteed payments) in play, faster posting, and closer integration of electronic bill payment with online banking and other products. In addition, they see the need to better integrate the different ways banks can facilitate payments for customers, providing multiple options via a single point of access. |
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Biller panelThe biller panel focused primarily on how to increase consumer adoption of online bill presentment and payment, the importance of clean data, and how to suppress paper. Consumer education was seen as the best method for expanding adoption. In particular, it was suggested that focusing more on pay-anywhere technology versus pay-anyone could help expand adoption immediately. While the panelists lauded financial institutions for making electronic payment easy for consumers and driving growth, they also noted that the front end and billers need to work more closely to get good data flowing through the system. This will help suppress paper exception items—a primary goal for all the panelists—and help ensure that premium services, such as guaranteed payments, will work as advertised. The MasterCard RPPS Biller Directory was cited as an important tool in the delivery of valid data, and a variety of additional tools, such as national standards and presentment, were also discussed. Looking three years out, the panelists predicted more growth but saw a need to find inventive ways to drive consumers online. They challenged the need for and the viability of same-day payments, suggesting that the first priority should be cleaning up the data that's already in the system. 
Processor panelPrimary topics for the processor panel included faster payments, moving past obstacles to further industry expansion, and opportunities for generating revenue. Customers are asking for expedited payments, the panel agreed, noting that electronic payments have become a primary product for financial institutions. However, if the industry is to move deeper into mass market adoption, it will have to defeat consumer inertia and counter concerns about loss of control, security, and pricing. Intensified educational efforts, suggested the panel, could be helpful. Institutions might also need to change their own behaviors, including better cooperation on fraud. Consumer-facing solutions that emphasize convenience and security and leverage branch know-how (branches are a primary source of referrals for online services, the panel agreed) will have the greatest chance for success. The best opportunities for generating revenue may well come from packages that include not just expedited payments but also bill presentment, and convenience drives consumer willingness to pay for premium services. Looking ahead, the panel foresaw financial services opening up to the unbanked, with prepaid cards leading the way, as well as growth in mobile payments, account-to-account services, and the availability of more payment types online. A spirit of cooperation The guiding spirit for the panels was one of mutual respect and a shared willingness to foster innovative solutions, reflecting the cross-industry cooperation required to deliver an effective electronic payments functionality to consumers. 
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