FOR IMMEDIATE RELEASE
ICBA Supports Same-Day ACH
Washington, D.C. (April 22, 2013)—The Independent Community Bankers of America® (ICBA) today released a white paper, “Same-Day ACH: An Opportunity for Leadership,” expressing its support for same-day Automated Clearing House (ACH) capabilities and encouraging community banks and other institutions to adopt same-day ACH services.
“Same-day ACH capability helps community banks stay at the center of serving their customers’ payment needs, particularly as they strive to remain competitive in their marketplace, where same-day payments are already supported in many cases,” said Bill Loving, ICBA chairman and president and CEO of Pendleton Community Bank in Franklin, W.Va. “ICBA strongly believes that an accelerated transition to same-day ACH is vital to all financial institutions and customers.”
In its white paper, ICBA said same-day ACH levels the playing field between community banks and larger competitors, including non-bank providers, and enables the faster flow of funds, reduces settlement risk for financial institutions, and supports emerging payments such as mobile and person-to-person. The white paper specifically recommends that community banks:
- adopt same-day ACH services;
- encourage their correspondent banks and processing providers to adopt and support same-day ACH services;
- collaborate to identify specific uses and geographies for collective participation among banks where same-day ACH provides value; and
- encourage their regional payments association to aggressively advocate for same-day ACH.
Technological innovation has raised customer expectations regarding faster payments. If lower-cost enhancements like same-day ACH can be supported with changes like rules modifications and selected advances in technology, banks should consider proactively supporting such an evolution. If lower-cost options like same‐day ACH can be supported with changes like rules modifications and selected advances in technology, banks should consider proactively supporting such an evolution.
“We are excited that same-day ACH has received such strong support from ICBA,” said First Vice President of the Federal Reserve Bank of Atlanta and Federal Reserve Retail Payments Product Director Marie Gooding. “The expansion of FedACH SameDay Service supports industry movement toward faster clearing and settlement of ACH payments while meeting the changing needs of financial institutions of all sizes and their customers.”
The Independent Community Bankers of America®, the nation’s voice for nearly 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit www.icba.org.