Paper may be dead but it is still possible to innovate with the traditional payment methods of the automated clearing house (ACH) and cheque. Matthew Leavenworth, director of product innovation and disbursements at Bank of America Merrill Lynch (BAML), argues that it is these payment methods that have the most potential for innovation.
Instead of writing paper cheques and sending them in the post, a similar experience – but paperless and much quicker – is now possible through peer-to-peer payments networks such as ClearXchange, a service created by BAML, Wells Fargo and Chase. All an individual needs to make a payment through this network is the recipient’s email address or mobile phone number.
Such innovative concepts are nothing new for Mr Leavenworth, who has been working in payments strategy and innovation for a number of years. In 2010, he joined the bank as a payments strategy executive from online retailer Amazon. At Amazon he worked in the global payments team, led the direct debit strategy and managed the mechanisms that enable Amazon’s customers to pay for goods directly from their bank accounts.
In this video, Mr Leavenworth discusses the differences between working with an innovative online retailer and a bank, and says that “banks have amazing capabilities to solve complex problems”. He also explains how he aims to bring the same innovative spirit of Amazon to BAML in creating innovation in payments.
