Connect ► twitter| youtube|  Log In ► Members Only  |  Corporate One Safekeeping  |  Search

From the CEO
November 1, 2019

Dear Members:

Last month, I announced Corporate One became a Funding Agent for credit unions on The Clearing House’s (TCH) RTP® Network, the first new industry payments rail in more than four decades and the first to deliver 24/7 clearing and interbank settlement. Now, another important milestone on the path to a “faster future” is on the horizon, this time initiated by the Federal Reserve, and your feedback is requested to ensure credit union voices are heard. Now through November 7, the Federal Reserve is accepting comments on its proposed FedNow service.

Please visit the Federal Register to submit a formal comment about the Fed’s proposed service.

Comments will be accepted now through November 7.

As you may recall, in 2018, the Board of Governors of the Federal Reserve requested public comment on potential services that could be developed by the Fed to support faster payments. Of the more than 350 comments that took a position on whether the Federal Reserve should develop a new service for faster payments, over 90 percent supported the Fed operating a round-the-clock, real-time payment and settlement service alongside services provided by the private sector. As a result, on August 5, the Fed announced their new proposed service.

The Fed envisions their new service will provide real-time payments to a greater range of financial institutions, including those that are small and rural. The Fed also intends to work alongside public entities like TCH, as they see the benefit of competition in helping to keep the pricing of services in check. For more details about the FedNow service, I encourage you to review this summary created by the U.S. Faster Payments Council, which highlights the key features of the proposed system.

This long-awaited decision by the Fed is not only significant for the evolution of payments in the U.S., but it’s also a strong endorsement by the Fed on the importance of real-time payments, placing even greater emphasis on the need for a robust credit union solution. Money-movement services have become more commonplace as consumers and small businesses send, receive, and even store cash through retail and technology-operated platforms. The rapid evolution of technology presents a pivotal opportunity for the payments industry to modernize the nation's payment system and establish a safe and efficient foundation for the future.

Credit unions are important stakeholders in this proposed service as we collectively serve more than 100 million members across the U.S. As your corporate partner, we are actively working on behalf of credit unions and will be submitting our own comment to the Fed, but your feedback is also important to ensure the new service meets credit union industry needs. Request for comment is open until November 7, and I hope you’ll take advantage of the opportunity to provide feedback.

Melissa Ashley