Faster Payments Are Here: How to Ensure Your Current Core Keeps Up
Credit
unions are increasingly pressured to meet member demands for faster, more
efficient payment solutions. In fact, according to Jack Henry’s 2024 Strategy Benchmark report , the
overwhelming majority of financial institutions plan to expand their payment
services within the next two years, with 63% of credit unions planning to add
real -time payments via FedNow.
Beyond FedNow, many credit unions are also adding the RTP network, the instant payments system operated by The Clearing House and the primary competitor to FedNow. While the network is backed by nearly 20 of the world’s largest banks – long-standing rivals – credit unions realize the value of faster payments to remain relevant. However, of the nation’s nearly 5,000 credit unions, just over 120 have joined FedNow compared to more than 570 banks, and just over 110 are on the RTP network.
Corporate credit unions, or "the credit union's credit union," are stepping in to support smaller institutions on their journeys to adopt faster payments. As an example, Corporate One FCU said it connected 18 credit unions to the RTP network in 2023 and had nearly 20 other credit unions in queue for the first quarter of the year, according to a press release.