VolCorp will join the more than 120 organizations participating in the FedNow Pilot Program. We are currently working with the Federal Reserve Bank (FRB) and our payments service provider to prepare for pilot testing and the production environment later this year. The program will support development, testing and adoption of the FedNow Service, as well as encourage development of services and use cases that leverage FedNow instant payment functionality.
VolCorp is a funding agent on the RTP network, the real-time payments system from The Clearing House (TCH). As a funding agent, VolCorp will facilitate liquidity management 24/7/365 for credit unions utilizing the RTP network.
VolCorp provides an efficient way for credit unions to manage funding for real-time payments by reducing the complexities associated with RTP funding requirements. When a credit union joins the RTP network and designates VolCorp as their funding agent, VolCorp will manage funding for the required joint account with the Federal Reserve Bank of New York and TCH on the credit union’s behalf. This makes access to the RTP network easier for many credit unions and helps to minimize the impact on current operations and available resources.
About the FedNow Service
The FedNow Service is a new instant payment service that the Federal Reserve Banks are developing to enable financial institutions of every size, and in every community across the U.S., to provide safe and efficient instant payment services in real time, around the clock, every day of the year. Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments conveniently, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments. Consistent with the Federal Reserve’s historical role of providing payment services alongside private-sector providers, the FedNow Service will provide choice in the market for clearing and settling instant payments as well as promote resiliency through redundancy. Financial institutions and their service providers will be able to use the service as a springboard to provide innovative instant payment services to customers.
About the RTP® network
The RTP network gives the financial industry a modern platform for domestic payments, complete with rich data capabilities and immediate payment confirmation. The system enables instantaneous settlement and availability to payment recipients, so those funds can be used or withdrawn as cash within seconds. The RTP network currently reaches 61% of U.S. demand deposit accounts and all federally insured depository institutions, regardless of size, can join the network. More than 270 financial institutions use the RTP network, with more joining each week.