Payments Modernization Opportunity: The 2024
Mid-Tier Banking Report

What is the US Mid-Tier Bank Survey?

The US Mid-Tier Bank Survey is a targeted research report that explores the key modernization initiatives among US mid-tier banks, focusing on their payment operations and technology strategies. Conducted by Datos Insights, partnered with Volante Technologies, the survey pulls data from a comprehensive set of sources, including an online survey of employees at midsize and large organizations, interviews with global payments executives, and insights from US bank leaders. This combined approach offers a unique view into the priorities, challenges, and opportunities facing mid-tier banks as they navigate a landscape increasingly shaped by digital transformation and evolving customer demands.

Infographic: insights and highlights

What are leaders currently prioritizing?

Real-time payments

  • 59% of mid-tier bank business customers believe their usage of real-time payments will increase in the next 12 months.
  • Leaders are weighing decisions between implementing FedNow® and The Clearing House’s RTP network, with many mid-tier banks expected to offer both solutions to maximize reach and flexibility.

ISO 20022 compliance and messaging standards

  • 62% of mid-tier bank customers are either already using or planning to use ISO 20022 messaging formats, positioning this transition as a strategic opportunity beyond mere compliance.
  • Additionally, 45% of mid-tier bank clients have plans to adopt ISO 20022 messaging in the future, even if their banks are not yet fully prepared.

Cloud technology and Payments as a Service (PaaS)

  • The report notes a strong shift toward cloud adoption, with a hybrid approach favored by mid-tier banks aiming for a full PaaS model.
  • Cloud technology supports advanced analytics for mid-tier banks, enhancing fraud detection, service personalization, and customer insights.

Automation tools and cash flow forecasting

  • More than 50% of mid-tier bank customers expressed interest in automated receivables, direct-to-card disbursements, and cash flow forecasting tools, highlighting the demand for operational efficiency and advanced cash management solutions.
  • Leaders see this to improve the end-to-end cash conversation cycle and address key gaps in customer needs, particularly for businesses managing complex financial operations.

These data points illustrate mid-tier banks’ strategic investments in response to both market demands and technological advancements, ensuring competitiveness and responsiveness to customer needs.

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