As real-time payments networks operate across the globe — FedNow in the U.S. and Faster Payments in the U.K., to name just two examples — those systems still need to communicate with one another as payments cross borders. Data needs to flow, in real time, across currencies and time zones.
And no matter the transaction size, or the senders and recipients — commercial or consumer — banks will still be the trusted intermediaries to make it all happen.
Shaunt Sarkissian, group chief markets officer at The Bank of London, told Karen Webster that the recently announced RTP initiative being piloted by The Clearing House (TCH), EBA Clearing and SWIFT would help further shape how clearing banks operate as real-time payment systems change money movement itself.
The pilot, he said, with the in-place support of 25 banks, “is a further accelerant to what we can call ‘Clearing 2.0’ — and shows what banks can do to be more effective.”