Looking to Join?

A quick guide for credit unions deciding between RTP or FedNow or both.

Progress is not possible without change, the adage goes. Whoever said it first probably didn’t work in payments, but the truth still sticks – growth and improvement require change. Knowing how and what to change, however, continues to be the biggest question.

Take those credit unions who’ve become interested in offering instant payment (IP) services tied to RTP (Real-Time Payments) and FedNow. One of the biggest questions these institutions – and very possibly yours as well – must address is which IP network to join. Or should you join both? RTP and FedNow share similar characteristics with instant availability of funds and instant settlement. The primary difference is how settlement is performed.

  • FedNow activity will settle in an FI’s Fed Master Account.
  • RTP will settle through a share account held by all RTP participants at the Federal Reserve.

But just this distinction alone isn’t always enough to mark a clear choice for your credit union’s adoption. A few key factors, however, can you get you the rest of the way there. Some things to consider:

  • How will your FI connect to the IP networks?
  • Staff readiness to determine training needs increases in FTEs.
  • How will your current consumer and business products align with IP features?
  • Which ancillary systems will support IP activity, such as fraud monitoring?
  • What level of participation is needed: Receive, Send, Request for Payment, etc.?

Ultimately, of course, whichever you choose will come down to what gives your credit union and its members the greatest opportunities for success. And rest assured that integrating the decision into the rest of your processes will take some real strategic planning, regardless of what you choose.

So, what will it be for your credit union? RTP? FedNow? Both? We’d love to talk with you about it.