FIS, Fiserv and Jack Henry to cover the RTP network onboarding costs for MDIs

By Pavithra R

Fiserv, FIS and Jack Henry to extend the benefits of real-time payments to more individuals and small businesses has teamed up with The Clearing House to jointly fund the onboarding fees of minority-owned depository institutions (MDIs) joining the RTP network, the real-time payments network operated by The Clearing House. 

Minority banks and credit unions are key contributors to their local economies and often provide financial services for many individuals and small businesses that are historically underserved and often susceptible to predatory lending practices, such as exorbitant interest rates or check cashing services that charge high fees.

The RTP network is s empowering financial institutions of all sizes and businesses to implement innovative, value-added use cases for faster payments. The RTP network gives the banking industry a modern platform for 24/7 domestic real-time payments, complete with rich data capabilities and immediate payment confirmation. The network enables instantaneous settlement and availability, so funds can be used or withdrawn as cash within seconds.

“In a world moving more quickly than ever before, demand for faster payments has never been higher. Minority-owned banks and credit unions play a crucial role serving their communities and local small businesses, and the ability of these institutions to support real-time payments can help alleviate many cash-flow concerns for their customers,” said Jim Aramanda, President & CEO, The Clearing House.

The RTP network’s capabilities give customers more control of their payments, helping to reduce late fees and penalties, and can dwindle the need to rely on services such as check cashing. SMBs served by MDIs on the RTP network will have the ability to send and receive payments immediately, which will allow them to pay workers or purchase inventory or supplies on the same day.

“Many communities served by MDIs need access to flexible, faster payments which can help prevent missed payments, avoid late fees and penalties, protect credit scores, and improve cash flow and financial health. This exciting program enables Jack Henry to financially partner with The Clearing House to give these financial institutions parity with larger institutions and hopefully prevent many consumers and small businesses from being underbanked,” said Tede Forman, head of consumer and commercial payments for Jack Henry & Associates.