FIS and TCH aim to bring real-time payments to minority communities
NEW YORK, May 4, 2021 / PRNewswire / – In an effort to bring the benefits of real-time payments to all Americans, especially those in communities served by Minority-Owned Depository Institutions (MDIs), the financial technology leader FIS and The Clearing House jointly fund the integration fees for MDIs joining the RTP® network, the real-time payment network operated by The Clearing House, via FIS.
“Minority-owned banks and credit unions play a crucial role in serving their communities and local small businesses, and real-time payments can help solve many cash flow issues for customers,” said Jim aramanda, President and CEO, The Clearing House. “The demand for faster payments has never been higher, and all Americans deserve the benefits of real-time payments over the RTP network.”
Minority-owned banks and credit unions are key contributors to their local economies and often provide a trusted financial service option for many individuals and small businesses. Without minority-owned financial institutions, many consumers and small businesses in these communities could be exposed to predatory lending practices, such as payday loans with exorbitant interest rates or check-cashing services that charge high fees.
“FIS is delighted to build on our successful partnership with The Clearing House to promote large-scale financial empowerment in our communities,” said Kelly beatty, responsible for payment solutions at FIS. “By working with TCH, we are delivering new, more cost-effective real-time payment solutions to MDIs and their customers, in line with our commitment to increase financial access to all communities. ”
FIS’s simplified approach to MDI integration is made possible by the FIS Open Payment Framework (OPF). Through the OPF, FIS provides a full turnkey service to US financial institutions to cost-effectively connect to The Clearing House’s RTP® network as well as RealNet ™, the new software-as-a-service platform. (SaaS) cloud-based FIS. which will enable account-to-account (A2A) transactions on real-time payment networks around the world.
Real-time payments over the RTP network provide consumers and small businesses with the ability to send and receive payments 24 hours a day, 7 days a week, with immediate confirmation of receipt of payment. These features help the customer to control their payments and could significantly reduce the reliance on check cashing services or the reliance on slower payment methods that can result in late fees and penalties. Small businesses served by MDIs on the RTP network will have the ability to receive payments immediately, allowing them to pay workers or purchase inventory or supplies on the same day.
The RTP network, developed by The Clearing House, enables financial institutions of all sizes and businesses to implement innovative, value-added use cases for faster payments. The RTP network provides the banking industry with a modern platform for 24/7 real-time domestic payments, with rich data capabilities and immediate payment confirmation. The network enables instant settlement and availability, so funds can be used or withdrawn for cash within seconds.
The real-time payment capabilities of the RTP network reach around 60% of demand deposit accounts in the United States, and more and more financial institutions are joining the network every week. Additionally, FIs that own 70% of US DDAs have technical access to the RTP network, often through core banking technology providers such as FIS. The RTP network offers a flat rate structure for all depository institutions regardless of size, does not include volume discounts or has minimum volume requirements, and does not charge operator fees. to receive payments.
About the clearing house
The clearinghouse operates US-based payment networks that clear and settle over 2,000 billion dollars every day by wire transfer, ACH, check image and real-time payments. It is the most experienced payments company in the country, with a long history of delivering secure and reliable systems, payments innovation and strategic thought leadership to financial institutions. More recently, The Clearing House revolutionized the payments infrastructure in the United States with the RTP® network, which supports immediate payment clearing and settlement, as well as the ability to exchange associated payment information through the same secure channel. These RTP capabilities enable all financial institutions to deliver safer, faster and smarter digital transaction services to their corporate and retail customers. Learn more at www.theclearinghouse.org.
SOURCE The Exchange Room