Rich Clow, Managing Director and Head of Innovation and Strategy for Global Payment Solutions, Bank of America
Rich Clow, Managing Director and Head of Innovation and Strategy for Global Payment Solutions at Bank of America, shared insights at Money20/20 into how the bank is driving innovation across its payment solutions for clients worldwide. Clow’s team focuses on creating adaptable, innovative payment solutions that serve clients ranging from individual checking account holders to large global corporations. Two key areas of focus for Bank of America are real-time payments and mobile wires.
Bank of America has been working on enabling real-time payments as part of a larger global trend, currently present in over 30 markets, to create a more efficient payment ecosystem. They are specifically concentrating on scaling “request for payment” options in the U.S., although the rollout will take time. Additionally, Bank of America recognized a need for cross-border mobile wire solutions, particularly for small businesses and individual consumers, by enhancing foreign exchange transparency and adding features like Spanish-language support. This has resulted in significant client retention and a 25% uptake in mobile wire solutions within five months.
One of Bank of America’s latest ventures, Paze, aims to simplify online transactions by reducing data entry and enhancing security. Developed by the owner banks of Early Warning, including Bank of America, Paze addresses challenges such as declined transactions due to minor data errors and the reluctance of users to store information across multiple merchant sites. Paze allows users to enroll with pre-loaded details from their bank or during checkout, verified through a one-time passcode for additional security.
In terms of embedded finance, Clow pointed out that consumers increasingly expect payments to be seamlessly integrated into their experiences, citing the convenience of Uber as a key example. Through tools like Bank of America’s CashPro, which leverages AI and machine learning, corporate clients can optimize their working capital management, offering insights on cash flow, liquidity pooling, and foreign exchange management.
Clow also shared his perspective on open banking, noting that in the U.S., unlike in the UK where PSD2 has driven standardization, open banking has been slower to take off due to the abundance of existing payment options. While open banking is unlikely to “transform” the U.S. market, he sees it evolving gradually, with a focus on ensuring that solutions can scale safely and offer meaningful choices to consumers.
Natalie Talpas, EVP, Group Manager, Senior Digital and Payments, PNC
Natalie Talpas, EVP, Group Manager, Senior Digital and Payments at PNC, discussed open banking developments, specifically in light of the Dodd-Frank Act’s Section 1033, which focuses on data access and sharing. Talpas participated in a panel alongside Paul LaRusso of Akoya and Nicole Elam from the National Bankers Association, exploring the regulatory landscape and its implications for banks and consumers.
Talpas emphasized the progress the industry has already made in data sharing, highlighting the role of the Financial Data Exchange (FDX), which supports standardized, secure data permissions, and includes over 90 million connected accounts. She noted that while the final rule on Section 1033 encourages secure data-sharing practices, some aspects were still lacking, particularly the omission of a clear ban on screen scraping—a widely criticized method of data access—and definitive guidelines on liability. Talpas speculated that these omissions might stem from the varied readiness of financial institutions, particularly smaller ones, to comply with secure data-sharing standards.
Looking forward, Talpas hopes for expanded regulatory action. She noted that CFPB Director Rohit Chopra has indicated further regulations, which could extend the rule to cover other types of financial accounts, such as investment or lending accounts, beyond the current focus on deposit and credit accounts.
On the topic of account primacy, Talpas explained that PNC aims to foster customer trust and transparency, enabling users to see where and how their data is being shared through their primary accounts. This approach, she noted, will support customers in making informed decisions by giving them more control over data permissions within the PNC mobile app. Additionally, by enabling easier access to competitive rates and personalized offers, PNC hopes to deepen its role as a primary financial institution for its customers. Talpas emphasized that clearer consumer education on data-sharing practices and transparency on data use are critical for building trust in open banking, aligning with CFPB’s goal of improving consumer control over personal financial data.
Mike Jorgensen, Head of Emerging Solutions and Embedded Payments, U.S. Bank
Mike Jorgensen, Head of Emerging Solutions and Embedded Payments at U.S. Bank, shared insights into how the bank supports its commercial clients with embedded payment solutions to create more integrated, seamless consumer experiences. U.S. Bank has focused on the growing demand for payment integration within consumer-facing applications, offering solutions that embed payment processes directly within client applications to simplify and enhance the payment experience. For example, within industries like automotive and insurance, U.S. Bank is enabling payment processes to be included in app experiences so that, for instance, insurance claims can be resolved and payments processed without delays or traditional paper checks.
Jorgensen highlighted two practical use cases: first, enabling same-day account-to-account funding in brokerage accounts using faster payment rails like real-time payments and FedNow, eliminating typical ACH delays. Second, within insurance, U.S. Bank is working to streamline claims payment processes by embedding instant payment options directly into insurance apps, ensuring faster and more convenient claims settlements for consumers.
U.S. Bank’s Connected Partnership network is another component of its embedded payment strategy. This network allows partners to certify on U.S. Bank’s APIs across various payment rails, enabling seamless, real-time payment experiences within partner applications. This approach removes the need for traditional batch processing and manual file exchanges, fostering more immediate and efficient transactions.
Dee Choubey, CEO, MoneyLion
Dee Choubey, CEO of MoneyLion, shared the latest updates on the company and introduced “MoneyLion Checkout,” a platform designed to simplify the often cumbersome process of obtaining financial products. Through partnerships with credit bureaus and platforms like Plaid and Nova Credit, MoneyLion Checkout enables consumers to submit a single application, which is then matched with multiple financial providers. This approach streamlines applications for products like credit cards and loans, resulting in a smoother, faster customer experience. Banks, in turn, see increased conversion rates and access to high-intent consumers.
Choubey also discussed the role of artificial intelligence in transforming financial services. He suggested that AI will play a significant part in reducing operational costs and enhancing customer experience by enabling “agents” to negotiate products on behalf of customers. Looking forward, Choubey expects major financial institutions to adopt AI, leading to a shift in cost structures and the potential for regulatory changes to protect revenue streams.
Further innovation in embedded finance, particularly direct deposit switching, was highlighted as beneficial for consumers. With tools like Atomic, consumers can easily divide their pay across multiple institutions to take advantage of various financial rewards and services. Choubey emphasised that this new data portability benefits consumers, enabling them to access better rates and services across different providers, ultimately lowering costs and enhancing financial freedom.
