Independent Banker - November 2022 - 44

PORTFOLIO
excited to be exploring new use cases
with the Clearing House and the Fed
to enable them. "
Keep the customer at the heart
So, with so much changing and fresh
solutions emerging every day, how
can community banks best respond?
Experts agree that it's about putting
the customer first, this time with a
greater focus on payments needs.
" Payments are a primary function
of a bank account and our ability to
continue delivering outsized value
to customers relies on building both
great generic payment experiences-
pay anyone quickly and efficiently-
and tailored payment experiences,
such as splitting transactions, paying
merchants in-person and paying
contractors, " says Schulte.
In addition, reminding customers
about the added security that exists
with their community bank, which
nonbank providers might not offer,
will help them remember why they
chose their bank in the first place.
" One of the big advantages banks
have is that customers typically have
a high level of trust in the safety and
security of their bank, so that can be
a differentiating factor, " shares Ruhe.
" With a bank-based P2P service,
customers can also call someone
if there is a problem, which is
something consumers don't typically
A new owner for Payrailz
On August 9, Jack Henry announced its planned acquisition of
Payrailz, a company offering next-generation capabilities for
consumer and commercial bill pay, real-time P2P, account-toaccount
(A2A), business-to-customer (B2C) payments and more.
Perhaps most well known as the engine behind the bank-centric
P2P solution CHUCK, Payrailz' technology allows for a true openloop
experience. For Jack Henry, that advantage brings with it new
opportunities for supporting an open approach to payments.
" We feel the value of the Payrailz solution is that it allows you
to fund from and fund to multiple sources, " says Tede Forman,
president of payment solutions at Jack Henry. " With the Payrailz
P2P solution, you can fund to an ACH card, a Venmo account, a
debit card. And with the things Jack Henry brings to the table,
we're going to plug in real-time payments. So, if you think of
that truly being an open network, it gives the consumer at the
community financial institution a choice on how they want to
receive their funds. "
The company plans to bring the first of its Payrailz solutions
to market quickly. " We can offer a P2P product almost day one
[following the close of the acquisition], " shares Forman. " Our plan
is to be able to offer that into our base pretty much immediately. "
get with a non-bank digital provider. "
Beyond that, a little community
bank collaboration will go a long way.
" We think choice, ubiquity across all
institutions, speed and cost are all
important components to consumer
satisfaction with payment options, "
says Schulte, " and collaboration with
other like-minded institutions has
been critical to bringing this vision
to life. "
" Community banks should seek to ensure that
when customers open their app, there are
valuable and action-oriented capabilities and
launch points, inclusive of money movement. "
-NICK DENNING, ICBA BANCARD
44 Q ICBA Independent Banker Q November 2022
Whether banks offer open or
closed networks, they should
still take steps to inform their
customers of the prevalence of
scams perpetrated by sophisticated
fraudsters, " says Denning " It is
important for customers to be aware
of the risks that come with instant
payment transfers. They should
ensure they are comfortable with
the subject transaction and know
the recipient before authorizing
payments because once the money is
sent, it is unlikely to be returned. " 
Colleen Morrison is a writer
in Maryland.
Independent Banker - November 2022

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