Independent Banker - May 2019 - 64

Partnering
for Success
Making real-time payments really work for community banks
Tim Mills, Vice President, RTP Business Development
Community banks play a vital role in the nation's economy,
providing access to banking services for millions of consumers
and businesses. Recognizing the essential role that
community banks play in the country's financial system, The
Clearing House (TCH) has engaged with community bankers
to ensure that the RTP® network, the real-time payments
network from TCH, meets the needs of all U.S. financial institutions
and their customers.
sets forth how the RTP network will be operated. To ensure
that there is an ongoing dialogue among participating institutions,
TCH is also adding four new seats for community
banks to the RTP Business Committee in order to expand
the type and number of financial institutions that help manage
the network.
Launched in November 2017, the RTP network is not only
a beneficial cash management product for bank customers
that allows for improved cash flow and greater financial
control, but it also allows community banks to retain and attract
low-cost deposits. The RTP network is now connected
to over 50 percent of U.S. accounts, and that connectivity
is expected to increase so that nearly all U.S. accounts will
be able to access the RTP network by 2020. Community
banks are an important part of this equation, both because
they provide for the ubiquitous reach that's necessary for
the country's real-time network and because their customers
will increasingly be seeking the many benefits that come
with real-time payments.
To that end, we are working to ensure that community banks
can connect to the RTP network as easily as possible and
we are engaged with bankers' banks and third-party service
providers to make sure all financial institutions have a viable
and clear path to participate.
To make certain that the requirements of community banks
are being met through the RTP network, TCH has been gathering
feedback on the community banks' specific needs,
along with the needs of consumers, through advisory
groups and during ongoing conversations with those in the
industry. During the process, you urged us to share as much
information as possible about the RTP network's pricing and
operating rules, and we have responded.
We recently issued the Business Principles for
the RTP
Network which describes the RTP network's pricing structure
(flat fees for all participants, regardless of size, with no
volume discounts or minimum volume requirements), and
tim.mills@theclearinghouse.org / (917) 509-8677
theclearinghouse.org
Finally, in order to provide an ongoing information flow, TCH
continues to hold in-person forums around the country that
are geared toward community banks and credit unions, as
well as numerous webinars where you can hear more about
the RTP network. To learn more, please visit theclearinghouse.org/payment-systems/rtp
We
see these forums as a valuable opportunity for us to
work together, and we look forward to moving toward the
country's future of real-time payments.
http://www.house.org/payment-systems/rtp http://www.theclearinghouse.org
Independent Banker - May 2019

Table of Contents for the Digital Edition of Independent Banker - May 2019
