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10/24/2024

61% of Millennials Want Real-Time Payments in Finance and Insurance

PYMNTS

As the financial and insurance sectors evolve, the demand for swift and accurate payment systems has never been more pronounced. Legacy systems often need to improve, resulting in delays and errors that can damage customer loyalty and business viability.

PYMNTS Intelligence Report, Fast-Tracking Funds: Finance and Insurance Accelerate Payments, in collaboration with The Clearing House, shows how growing customer dissatisfaction drives financial institutions and insurers to adopt real-time payment solutions to meet consumer expectations.

Outdated Payment Systems Delay Customer Transactions

Swift payouts are essential in the finance and insurance industries, where delays can severely impact customers. The aftermath of natural disasters exemplifies this urgency; payouts for such events in the U.S. exceeded $275 billion from 2020 to 2022 — prompting a need for immediate funds. Notably, more than 25% of policyholders reported switching providers to access faster payouts, highlighting a significant gap in service delivery. Nearly 40% of insurers do not offer preferred payment options, driving customers to seek alternatives.

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