61% of Millennials want real-time payments in insurance

As the finance and insurance industries evolve, the demand for speed and accuracy increases Payment systems has never been so pronounced. Legacy systems Improvements often need to be made, resulting in delays and errors that can affect customer loyalty and company profitability.

A PYMNTS Secret Service Report, Fast Tracking Funds: Finance and insurance speed up paymentsin collaboration with The clearing houseshows how growing customer dissatisfaction is driving Financial institutions And insurer Introducing real-time payment solutions to meet consumer expectations.

Outdated Payment systems delay customer transactions

Fast payouts are essential in the financial and insurance industries as delays can have serious consequences for customers. The consequences of natural disasters illustrate this urgency. Payouts for such events in the US exceeded $275 billion 2020 to 2022 – resulting in a need for immediate funding. Notably, more than 25% of policyholders reported switching providers to receive faster payouts, indicating a significant gap in service delivery. Almost 40% of insurers do not offer preferred payment options, leading customers to look for alternatives.

Previous technical problems below Wells Fargo highlight the potential consequences of ineffective legacy systems. In this case, a processing error left some customers unable to access their funds for several days, a crisis that can be particularly devastating for those living paycheck to paycheck. Such incidents show that outdated payment methods can not only lead to delays, but also a loss of trust.

Insurance and financial customers want improved payment options

The changing expectations of customers It’s clear: you want faster and easier payment options. According to the report it is 61% Millennials expressed great interest Real-time paymentsindicating a broader shift towards instant transactions. Companies implementing these systems reported significant benefits, with 77% noting an improved customer experience. 54% of respondents found that real-time transactions reduced problems associated with urgent payments.

Additionally, 30% of customers want to avoid additional fees associated with real-time payments And Many still need to be convinced of its safety and accuracy. Specifically, 34% are worried about erroneous deposits, while 26% express concerns about fund security. Financial institutions must address these issues through transparent communication and offer free or low-cost real-time payment options to increase consumer trust.

Financial and insurance companies are introducing faster payment solutions

Recognize the urgent need for changeMany insurance companies and banks are starting to introduce real-time payment solutions. Victory Insurance has implemented Insurity’s Sure Claims Payments platformwhich enables payments to be processed in just 30 seconds after approval. This action not only meets the demands of customers, but also positions the company positively compared to the competition.

credit Trade unionsAre He is also in charge of this transition. Partnerships like that of Corporate One Credit Union and CU*Answers streamline The Clearing House RTP network integration and make real-time payments more accessible. This initiative aims to simplify the onboarding process for credit unions, which can be hampered by resource limitations.

Financial institutions and insurers must adapt to the growing demand for real-time payment solutions in a highly competitive environment. By overcoming the limitations of legacy systems and prioritizing customer needs, these companies can foster loyalty and drive growth.