Last week when the Senate Banking Committee and House Financial Services FinTech Task Force held hearings about real-time payments, it opened the doors for better service to credit union members. The decision to develop and operate a real-time payments network called FedNow, and also support efforts of The Clearing House (TCH) to develop its own real-time payments network are both in the interest of credit unions. Real-time payments will help credit unions provide necessary financial services to their members and improve access to funds.
Credit union members should benefit from the innovation and clarity of a faster payment system.
Having multiple real-time payments networks will ensure a more robust banking system, allowing for better protections against cyberattacks and technical glitches, as well as the innovation that comes from competition. The Federal Reserve is the only vendor that works with nearly all credit unions and has the bandwidth and expertise to provide services to the entire financial services sector.
Read the full Washington Wire here.
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