Removing Barriers Blog

Senate Banking Committee holds hearing on faster payments
Posted September 26, 2019 by CUNA Advocacy

CUNA wrote to Chairman Crapo and Ranking Member Brown prior to yesterday’s hearing in the Senate Banking Committee hearing entitled, “Facilitating Faster Payments in the U.S.”

The letter notes that CUNA and its members strongly support the Federal Reserve’s decision to develop and operate a real-time payments network called FedNow, and also support efforts of The Clearing House (TCH) to develop its own real-time payments network. Real-time payments will help credit unions provide necessary financial services to their members and improve access to 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… We think the efforts by the Federal Reserve Board and the TCH will help to bring real-time payments to consumers, who will benefit from the innovation and clarity of a faster payment system,” the letter reads.

CUNA believes that, from a pre public policy standpoint, having multiple real-time payments networks will ensure a more robust banking system, allowing for better protections against cyberattacks and technical glitches, as well as the innovation that comes from competition.

The letter also notes that the Federal Reserve is the only vendor that works with nearly all credit unions and has the bandwidth and expertise to provide services to the entire financial services sector.