Removing Barriers Blog

FinTech Task Force holds hearing on real-time payments
Posted September 27, 2019 by CUNA Advocacy

CUNA wrote to the House Financial Services Committee Task Force on Financial Technology prior to their hearing on real-time payments. Real-time payments will help credit unions provide necessary financial services to their members and improve members access to their funds. Credit unions exist to help their members, but cannot do it alone. Credit unions rely on networks of key vendors to provide service to members and no current vendor is more critical than the Federal Reserve.

The letter adds that the CUNA and its members strongly support the Federal Reserve’s decision to develop and operate a real-time payments network, and also support efforts of The Clearing House (TCH) to develop its own real-time payments network.

“From a pure public policy standpoint having multiple real-time payments networks will ensure a more robust banking system. As the plumbing of the payments systems is essentially a utility, having multiple operators will help make the system more robust against a cyber-attack or other unforeseen technical glitches,” the letter reads. “Also, competition breeds innovation, and not just in product features but in other aspects such as the security and robustness of the system.”

CUNA wrote a letter with similar thoughts to the Senate Banking Committee for its hearing on faster payments.