Wisconsin-based correspondent bank Bankers’ Bank has signed on to become a funding agent for The Clearing House’s real-time payment network.
The bank will fund and manage positions in the RTP network joint account on behalf of its respondent community bank customers. This allows the bank to lower the requirements for participation and provide additional features and benefits around settlement and management of customers’ RTP network participation, the bank said in a statement.
“Bankers’ Bank has been a trusted provider of payment and liquidity services for decades,” Steve Ledford, senior vice president of product strategy and development at The Clearing House, said in a statement. “We are excited that they are leading the way to bring the RTP network to community banks.”
Locally, Berkshire Bank joined TCH in June and Avidia Bank in May.
TCH is not without controversy; the Federal Reserve announced earlier this month that it intends to create its own real-time payment and settlement service, leaving community banks in a bind.