As payment technologies evolve, financial institutions face challenges integrating instant payments. To help, EPCOR has launched the Instant Payments Enablement Service, led by Nicole Payne, AAP, APRP, CPA, CRCM, CIA, in partnership with DeNovo Treasury. Nicole Payne is Vice President of Advisory Services at EPCOR, where she focuses on building solutions to meet member needs. With a background in auditing and compliance, she thrives on problem-solving and helping others grow. This new service is designed to guide institutions through the complexities of instant payments, promoting collaboration and addressing industry pain points.
What Pain Point Will This Service Solve for Financial Institutions?
"The biggest pain point would be the lack of cross-functional collaboration that is necessary for instant payments,” explains Payne. “With any new product launch, a lot goes into planning. With the immediate settlement and availability of instant payments, our members are finding that even more areas of the financial institution need to be involved in planning efforts than for your typical new product launch.” She highlights that the service facilitates coordination across departments, ensuring that all involved parties “speak the same language and row in the same direction.” This approach allows for a smoother implementation, which is essential for the success of instant payments.
Payne notes that while instant payments may seem technically simple, the real challenge is coordinating departments to ensure a smooth launch. “Even though the actual ‘flipping the switch’ to instant payments may be easy for your core provider, there are so many moving parts to consider before taking the service to market,” she says. Through structured sessions, EPCOR guides institutions in creating a phased plan for instant payments, helping teams identify key issues early.
Why Did You Choose DeNovo Treasury for the Partnership?
Payne describes the core of this enablement service, “The go-to-market and implementation plan that EPCOR and DeNovo Treasury has developed (and that we walk them through) is an excellent tool we provide to help them manage that plan,” This partnership with DeNovo Treasury brings a unique advantage, “DeNovo Treasury offers a unique mix of experience in the financial services industry,” Payne notes, “including leading treasury management programs for small community financial institutions and mid-size banks as well as for service provider/Fintechs.”
What Trends Do You See as Financial Institutions Begin Their Instant Payments Journey?
In addition to coordination, the service helps institutions navigate the wide array of options available in the instant payments ecosystem. “There are so many options out there! Whether it’s finding new technology partners, funding partners or risk management partners, no two paths to instant payments will look the same,” Payne describes. By breaking down these options into clear steps, the service provides institutions with a manageable framework to make informed decisions and choose the best path to implementation.
What Is Your Biggest Takeaway from the Services You’ve Conducted So Far?
Practical exercises included with the service are designed to foster collaboration and illuminate each department’s role in the process. Payne highlights two standout activities that participants find especially enlightening: the Instant Payments Stress Test and the Internal Controls Exercise. “We do a couple of exercises during the service that are not only fun and engaging, but also because of so many ‘ah-ha’ moments with participants that you can almost see the lightbulbs lighting up across the room,” Payne shares.
The Instant Payments Stress Test requires participants to work through scenarios that impact various departments’ processes, policies and requirements. Payne notes that, “about mid-way through the exercise, a lot of times the folks from the finance and compliance departments start scribbling down notes to take back to their departments for further discussions.” This scenario-based approach reveals unforeseen challenges, giving departments a deeper understanding of how instant payments may affect them.
The Internal Controls Exercise identifies potential risks associated with instant payments. “This exercise tends to be a favorite for Enterprise Risk Management, Compliance and Internal Audit participants,” says Payne. These exercises not only enhance internal collaboration but also prompt participants to consider interdepartmental impacts, addressing questions and concerns that may otherwise go unnoticed.
Why Did You Decide to Add This to Services That EPCOR Provides?
As the industry quickly moves toward instant payments, EPCOR’s enablement service anticipates the next wave of challenges for financial institutions. Payne remarks, “It’s been amazing to watch how quickly the industry is getting on the instant payments bandwagon, at least from the receiving perspective.” The service aims to prepare clients for future challenges as the volume of instant payment transactions grows. “We want our clients to be well prepared for the challenges that come next,” Payne emphasizes.
Offering the Instant Payments Enablement Service is an important piece of the puzzle as we work to address the needs of you, our members. With this service, EPCOR and DeNovo Treasury aim to not only simplify the journey but also equip financial institutions with the knowledge, strategy and cross-functional coordination needed to succeed in an increasingly real-time financial landscape.