Originally published on The Clearing House website
New York and Madison, WI, August 21, 2019 – Bankers’ Bank, a state-chartered financial institution that specializes in providing correspondent banking products to community banks, has committed to become a Funding Agent for depository institutions looking to provide real-time payments capabilities to their customers on the RTP® network developed by The Clearing House (TCH).
Bankers’ Bank will play a key role in faster payments as a Funding Agent for community banks participating in the RTP network, and will participate as an early adopter of the technology. As a Funding Agent, as defined by the RTP network Participation Rules, the Bank will fund and manage positions in the RTP network joint account on behalf of its respondent community bank customers. This allows the Bank to lower the requirements for participation and provide additional features and benefits around settlement and management of customers’ RTP network participation. Bankers’ Bank has chosen to work with CGI, a global end-to-end IT and business consulting services partner and leader in innovative payment programs and solutions, to develop a one-of-a-kind funding solution that manages the funding for settlement in the RTP network joint account for Bankers’ Bank clients.
Bankers’ Bank believes in the critical role of community banking in the nation’s financial system. To ensure banks have the tools necessary to compete, Bankers’ Bank is excited to be building a 24/7 liquidity management solution for RTP transactions. Incorporation of services that fund RTP settlement for its clients into the suite of Cash Management solutions Bankers’ Bank already provides makes sense. “Providing solutions that offer community banks a road to success is our business,” said Matt Sitkowski, Executive Vice President and CFO, Bankers’ Bank. “That is why we are working with TCH and CGI to provide enhanced solutions that provide funding for settlement on behalf of Bankers’ Bank clients allowing them easy access onto TCH’s real-time rail, the RTP network.”
Bankers’ Bank has partnered with CGI to develop the Funding Agent Platform. “CGI is proud to work with Bankers’ Bank and The Clearing House on this transformational initiative,” said Dave Delgado, Senior Vice-President of U.S. West Operations at CGI “The Funding Agent Platform will enable banks of all sizes to compete and transact on the RTP network and CGI is honored to participate in this critical project."
“Bankers’ Bank has been a trusted provider of payment and liquidity services for decades,” said Steve Ledford, senior vice president of product strategy and development, The Clearing House. “We are excited that they are leading the way to bring the RTP network to community banks.”
The RTP network is the first new core payments infrastructure to be built in the U.S. in more than 40 years. The system is the first to deliver 24/7 clearing and interbank settlement, including the real-time movement of money and enriched data between participating financial institutions. The RTP network offers a suite of available use cases and extensive level of data accompanying each RTP transaction. The RTP network currently reaches more than 50% of U.S. accounts for real-time payment receipt.
About Bankers’ Bank
Bankers’ Bank, is a bank-owned correspondent based in Madison, Wisconsin, since 1981. Bankers’ Bank is the Midwest’s leading provider of banking services to community banks, with offices in the Madison, Chicago, Des Moines, and Indianapolis areas serving the four-state region and beyond. As an independent source of non-competing financial services, the Bank serves a market of over 700 financial institutions. The Bank does not serve the public so it never competes with client banks for business. More information is available on our website at BankersBank.com
About The Clearing House
Since its founding in 1853, The Clearing House has delivered safe and reliable payments systems, facilitated bank-led payments innovation, and provided thought leadership on strategic payments issues. The Clearing House continues to leverage its unique capabilities to support bank-led innovation, including launching the RTP® network, a real-time payment system that modernizes core payments capabilities for all federally-insured U.S. depository institutions. The Clearing House is the only private-sector ACH and wire operator in the United States, clearing and settling nearly $2 trillion in U.S. dollar payments each day, representing half of all commercial ACH and wire volume. As the country’s oldest banking trade association, The Clearing House also provides informed advocacy and thought leadership on critical payments-related issues facing financial institutions today. The Clearing House is owned by 24 financial institutions and supports hundreds of banks and credit unions through its core systems and related services. Learn more at www.theclearinghouse.org.
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With approximately 77,500 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. With Fiscal 2018 reported revenue of C$11.5 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more atcgi.com.
The Clearing House