Better together: Banks, payments partners, and putting prosperity first

Prosperity — a state of sustained growth and success that businesses achieve by establishing themselves financially and competitively in their countries — requires careful planning and partnerships, but businesses that can get there are set up to thrive.

Banks have to account for complexity as they pursue sustainability. Enabling customers to transact across borders requires navigating an array of regulations, intermediaries, payment integrations, and more. Real-time payments and emerging payment types like mobile payments and digital wallets are also becoming an expectation as customers grow more comfortable with new banking technologies.

For banks to thrive now and well into the future, they need a payments provider who can help them respond to technological and logistical changes in the financial landscape, adapt in key countries where their presence makes a difference, and invest in tools or services that make an impact. Below, we outline the hallmarks of a payments provider relationship focused on prosperity and how Visa Direct is equipped with the connections and solutions to serve banks of all sizes.

Solving challenges to grow revenue

Financial institutions face a host of challenges at each point in their journeys. When starting out, banks have to consider how they’ll set up their payment flows, build a brand that resonates with customers, and weather interest rate fluctuations.¹ Established banks, on the other hand, need solutions that can help them roll out new capabilities to their customers, manage the complexity of cross-border payments, and build revenue by handling a greater number of transactions. Put simply: Banks’ needs change over time, and they need additional support to tackle these responsibilities as they scale.

Unlock revenue by growing your bank with Visa Direct

Since banks’ priorities evolve as they grow and establish themselves, they need a flexible payments provider that can grow and adapt alongside them. Visa Direct gives financial institutions the support they need when they need it, regardless of their size. Banks can harness Visa Direct to help customers quickly and securely complete domestic and foreign transactions,² and Visa Direct offers real-time³ payments for numerous use cases, from peer-to-peer payments to cross-border remittances. Visa’s robust network reach and breadth of secure endpoints can open up a world of solutions for bank customers through a single provider.

In it together

Banks are eager to incorporate cutting-edge payment solutions to meet consumer expectations, but they’re often concerned about partnering with payments providers that could eventually compete for their customers. For example, almost one-third of financial institutions say that fintechs are the biggest competitive threats to their business,⁴ even though many seek to work with fintechs to offer new payment features and methods. This means banks put a premium on collaborating with payments providers they can trust and that have the bank’s best interests in mind.

Leveraging Visa Direct to elevate brand and customer experience

Banks must be able to access a robust set of payment solutions without having to worry that their customers may eventually leave them for the same payments providers that make those solutions possible. With Visa Direct, banks get a partner instead of a potential competitor. Visa Direct operates in the background to cut through cross-border complexities and make secure, real-time³ payments possible for customers around the world. This gives banks the infrastructure and connections they need to grow while they own the customer experience and build their brands with confidence.

Setting up to scale and enter new jurisdictions

Smaller and mid-size banks may be focused on reaching new customer bases or industries regionally or domestically, while larger banks might seek out new payment corridors and opportunities to enter new jurisdictions. But regardless of size, financial institutions need networks and payment capabilities to support their ambitions and help them achieve prosperity. Banks often fall into the habit of working with one or more payments providers to realize their short-term goals, but those providers don’t always offer a comprehensive suite of solutions and connections to help banks scale down the line.

Tapping new revenue streams with Visa Direct

To build for prosperity, banks must be strategic and nimble in the moment — they can’t always afford to wait weeks or months to onboard a payments provider or implement a solution. Visa Direct gives banks the power to seize opportunities as they arise. With Visa Direct, it’s cost-effective and simple for banks to expand into new geographies when they’re ready, without the expense and complexity of building their own payment networks. Visa Direct offers capabilities like fast, frictionless real-time³ payments, which can be used to support various customers and use cases. Banks of all sizes can rely on Visa Direct to support existing customers and help bring exciting new revenue streams and countries within reach.

Increasing operational efficiency

Setting up payments architecture efficiently is a key logistical challenge all banks face, but it’s especially notable for banks operating internationally. Cross-border payments must wind their way through several stops en route to their recipients, which can slow the process and cause a pileup of transaction fees and costs. Banks can solve these headaches by working with a payments provider that can integrate with them to promote operational efficiency. By enabling faster payments and providing a transparent fee structure, bank customers know when recipients will get their money and how much those recipients will receive.

The optimized approach to growth with Visa Direct

Rather than pulling together piecemeal solutions for customers, banks should look for a single payments provider that can give them what they need. Visa Direct is the ideal partner for optimization, allowing banks to satisfy existing customers and win new ones by offering frictionless cross-border transactions² with cards, digital wallets, and accounts. Visa Direct empowers partners with tools they need to drive growth, no matter the use case.

Prioritize prosperity with Visa Direct

Banks want prosperity, and Visa Direct can help make this possible by giving them the tools and resources to shape their payment strategies and meet customer needs. Visa has innovated in the financial space for more than 60 years, building an unparalleled network that allows you to reach more than 195 countries and access more than 150 currencies. Working with Visa Direct means you’ll get access to the knowledge, connections, and payment partnerships Visa has accumulated and forged over the years, including new capabilities through the acquisitions of fintechs like Currencycloud and YellowPepper. With Visa Direct, you’ll have access to the solutions and experience you need to reach your goals every step of the way.

Visa Direct. Move money your way.

To learn more about money movement, visit: visa.com/visadirect

Sources

1. What’s really behind small banks’ struggles?, Fast Company, 2023.
2. Availability varies by geography. Please refer to your Visa representative for more information on availability.
3. Actual fund availability for all Visa Direct transactions may depend on receiving financial institution, account type, region, compliance processes, along with other factors, as applicable.
4. Fintechs remain top competitive threat to financial institutions, CCG | Catalyst, 2023.

DISCLAIMER

Case studies, comparisons, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.