Instant Payments Are Here! What Are the Implications for Community Banks?
Sharon J. Lorman
Guest: Nick Denning, SVP of Payments Industry Relations at ICBA Bancard®, a subsidiary of the Independent Community Bankers of America
Podcast Show Notes:
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Topic: Instant Payments Are Here! What Are the Implications for Community Banks?
Our guest is Nick Denning, SVP of Payments Industry Relations at ICBA Bancard®, a subsidiary of the Independent Community Bankers of America
Instant payments are a type of faster payment that provide payees with immediate access to funds, enabled by real-time final settlement between financial institutions. While instant payments have been around for many years across the globe, they are still relatively new in the U.S. The Real-time Payments (RTP) network was launched in 2017 and is managed by The Clearing House, a membership organization owned by the largest U.S. banks. It was the first new payment rail to be launched in the U.S. in the last 40 years. Any FDIC insured depository institution can join the RTP network. However, now the Federal Reserve System is in the process of launching a competing real-time payments solution called FedNow. The service, which is expected to help drive broad adoption and usage domestically, is scheduled to go live in July 2023 and is currently being piloted by about 100 financial institutions. Our guest, Nick Denning, explains why instant payments are important for community banks and how your bank can best prepare. Listen and enjoy!
SVP of Payments Industry Relations
ICBA Bancard®, a subsidiary of the ICBA
Nick Denning is Senior Vice President of Payments Industry Relations at ICBA Bancard®, a subsidiary of the Independent Community Bankers of America. In this role, he brings nearly 20 years of industry experience while representing ICBA Bancard and its community bank customers on industry boards, councils, and committees regarding digital payments, emerging technology, and payments format standards.
ICBA Bancard’s instant payments resource page
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Watch for episode 88 of This Month in Banking to be released on Wednesday, April 26th, 2023, and a new episode on the last Wednesday of every month.
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