Will your credit union be providing real time payments by 2024?
It’s Possible, just Possible, that yesterday marks a key development in how people send and receive payments. If I am correct then this is a change that will help all consumers and all businesses, as well as all credit unions and community banks that will be able to compete with the banking behemoths in the years to come.
Yesterday, if all goes according to plan, the Federal Reserve committed itself to implementing a real time payment system by 2024. That’s right by 2024 all credit unions and banks irrespective of their size and location will be able to clear checks, debits and credits instantaneously. 7 days a week, 24 hours a day, and 365 days a year.
Why is this such a big deal? Do I really have to tell you? As the Fed put it yesterday in an FAQ and a Request for Comment accompanying its announcement “Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community,” said Federal Reserve Board Governor Lael Brainard. “FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers.” The Fed also noted that even though it was using the term bank it intended to give credit unions access to this platform.
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