Is a FedEx Model of Money Movement in Banking's Future?

• Published in: U.S. Banker Vol. 116; no. 5; p. 72
• Main Author: Dheer, Sanjeev
• Format: Trade Publication Article
• Language: English
• Published: New York SourceMedia 01.05.2006
• Subjects: Bank services; Banking industry; Banks; Business models; Customer services; EFTS; Electronic banking; Electronic funds transfer systems; Financial institutions; Transfer of funds; Trends; United States > US
• ISSN: 2162-3198

Easy money movement like funds transfers and payments is a key desire of most bank customers. With the rise of online banking, this desire has been heightened, with most consumers rating the need for seamless money movement to be among their most important requirements. The cornucopia of funds-transfer services offers banks an unprecedented opportunity to rethink the way they approach online funds transfer and money-movement services. Instead of multiple segments of transfers, online funds transfer will broaden to embrace any type of online money movement, including interbank, intrabank, between an individual's accounts and to third parties. If banks do not capitalize on this growing trend, others will, and the opportunity to define the service will disappear, as will additional revenue, assets and customer satisfaction.