Independent Banker - October 2018 - 34

PORTFOLIO
able to feel confident that we are managing
the risk of our organization. "
The chief task ahead for RTP is
working to get the rest of the TCH
membership on board, which will help
drive initial volume. The next task
is to further relationships with the
core processors and other third-party
providers, and reach almost 12,000
community banks and credit unions
that way. " There are a lot of questions
on how exactly to make it work, and
there is education that needs to be
done, " says Ledford.
In addition, real-time payments is
not just a technical issue. It affects
different areas of a community bank,
such as audit, risk, compliance and
frontline staff, as well as the products
and services that banks offer. So,
says Ledford, it is important to bring
different areas of the bank into the
planning process.
The RTP rail is likely to be the " tip
of the iceberg, " with core processors
and applications being developed to
plug into the RTP and other rails, says
Cary Whaley, ICBA first vice president
of payments and technology
policy. Certainly, there are still questions
that need to be resolved. " Once
this faster-payment ecosystem is in
place and can smoothly interoperate,
you're going to see a lot of creative
payments technology emerge from it, "
Whaley says.
Waiting for Fed input
ICBA is pro-faster payments and has
been supportive of the Fed's work in
faster payments. " Access is always
the issue in payments, and we think
that every bank should have a gateway
into payment systems, " says Whaley.
Last April, ICBA wrote a letter to the
Federal Reserve, asking it to consider
three roles in payments:
Play a similar role that it is playing
in check and ACH.
Serve as a gateway or on ramp to
RTP by leveraging the Fed's own connections
to community banks rather
than waiting for core providers to
develop software.
Consider hosting directories that
route transactions easier, which
would put the infrastructure more
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-Cary Whaley, ICBA
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The Fed is currently preparing a
report on its operational roles that
should be released later this fall.
Before deciding on next steps, community
banks are likely waiting for
that report to come out, as well as
waiting for more volume from RTP
and for TCH members to adopt RTP.
" One thing that the Fed heard loud and
clear is that the industry is waiting on
them, " says Whaley. " So, they needed
to move quickly, and I think they are
prepared to have those reports and
recommendations by year's end. "
Beth Mattson-Teig is a writer
in Minnesota.
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Independent Banker - October 2018

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