A processing glitch in the network that processes electronic transfers between nearly all U.S. bank accounts led to delays in settling deposits, some of which remain stalled, according to the private company that operates the system.
The growth of small businesses offers opportunities for banks and credit unions, with many expected to look at fintech partnerships to expand services for these customers.
Development of the Federal Reserve’s planned real-time payments system will be run out of Boston by a top leader at the Boston Fed.
With access to a real-time payments system an important selling point for some business customers, Massachusetts’ community banks find themselves at a fork in the road following the Federal Reserve’s decision to launch its own payments network.
The Federal Reserve announced today it will challenge a banking industry-backed group for real-time payments customers by developing its own system.
Avidia Bank, a small $1.6 billion-asset bank based in Hudson, joined The Clearing House’s real-time payments system. It’s a step few, if any, community banks in the country have dared to go down and Avidia executives say it will make it a leader in the payments space.
The Clearing House (TCH) last month released business principles outlining the operation of its real-time payments network, which it launched in November 2017 and is the only one in the country.
