Using the FedNow Service and The Clearing House RTP platform, SouthState Bank (SouthState) will be able to offer its one million customers faster and more flexible payment options. Volante Technologies, a leader in cloud payments and financial messaging, made this announcement.
SouthState has been listed as one of Forbes' 100 Best Banks in America for the previous three years. The regional bank provides a range of services at its 240+ locations, including mortgage lending, small business lending, commercial lending, wealth management, and correspondent banking.
The bank's multi-year banking-as-a-service plan includes a relationship with Volante to expand its payment options and assist clients in conducting business in a more effective and safe ecosystem.
"As we are looking to enable payments as a service for FedNow and RTP, we needed the right technology partner for our banking-as-a-service offering," said Chris Nichols, Director of Capital Markets, SouthState.
"Volante Technologies will enable us to deliver on these business benefits and help us innovate through a single platform, creating economies of scale that we anticipate being able to pass on to our customers. Moreover, with Volante's Payments as a Service, we will be able to innovate our products and services as the market demands it," Nichols said.
SouthState chose Volante's Real-time Payments as a Service, a cloud-native, ISO 20022-compliant, and microservices-based solution, to carry out its ambitions and target new consumer groups. Low-code focused, it enables real-time 24 hours a day, seven days a week, and offers quicker time to market for multi-rail payments operations, allowing SouthState to pick and choose components based on its use case.
With the help of the solution, the bank is able to combine tasks like fraud, risk, and sanctions screening across all services. This lowers the need for ancillary support services, allowing the bank to provide more services for less money and pass those savings through to the consumer. All of these elements work together to make the solution more flexible and agile, providing SouthState lots of room for gradual change.
"New technology approaches in cloud deployments, as well as payments as a service, have changed the accessibility model for payments modernization and how banks need to approach the implementation of a payments hub," said Erika Baumann, Research Director, Aite-Novarica Group.
"As real-time payments have become just as important as legacy payment rails in many regions, smaller banks must be able to meet customer demand for access to faster payments and the tools and automation that go along with them. Payment modernization efforts are table stakes," she continued.
"Furthermore, a payments hub can help create operational efficiencies, reduce redundancies, and automate manual processes—all very important for banks and their customers to be competitive," Baumann concluded.
"Given the uncertainty around the macroeconomic outlook, financial institutions that are able to focus on customer priorities, increased efficiency, and differentiation through value-added services provision will be best placed to survive and thrive," said Deepak Gupta, SVP & Global Head, Payments as a Service, Volante Technologies.
"Payments as a Service is becoming the preferred way for banks to adopt new payment types across North America and EMEA. In 2023, we expect more banks to adopt PaaS for payments processing to free up resources for innovation. We also anticipate banks to increasingly turn to real-time payments as a point of differentiation," Gupta continued.
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