VolCorp Becomes RTP Network Funding Agent
Kimberly Clark CU in Memphis is the first credit union to utilize the corporate credit union’s funding agent capability.
The $2.2 billion Volunteer Corporate Credit Union (VolCorp) in Nashville, Tenn., has become a funding agent on The Clearing House’s RTP network, the corporate credit union revealed Friday.
The Clearing House is currently the only U.S. vendor to enable access to real-time payments for financial institutions. As a certified funding agent, VolCorp acts as a middleman between The Clearing House and credit unions that are utilizing real-time payments, allowing those credit unions to manage fund settlements for their RTP transactions through VolCorp.
According to the announcement, the $130 million, Memphis, Tenn.-based Kimberly Clark Credit Union become the first credit union to take advantage of VolCorp’s funding agent offering.
“Real-time payments are changing the way we look at the entire payments industry,” VolCorp president/CEO Jeff Merry stated. “The adoption of real-time payments reflects the growing demand many credit unions and consumers have to move money instantly. This is a big step towards providing real-time payment access for our credit unions and their members.”
VolCorp explained that to utilize the service, a credit union first becomes a participant in The Clearing House’s RTP network, and after choosing VolCorp as its funding agent, the corporate credit union manages funding for a required joint account with the Federal Reserve Bank of New York and The Clearing House on the credit union’s behalf, helping to make the credit union’s real-time payments strategy easier and more efficient.
Real-time payments are defined as fund transfers that can be initiated any time and via any channel that are also certified, final, immediately available, instantly settled and confirmed to the payee and payer. As of February 2022, just 30 credit unions and two corporate credit unions were connected to The Clearing House’s RTP network, and seven corporate credit unions were certified funding agents. According to VolCorp, The Clearing House’s RTP network currently reaches 61% of U.S. demand deposit accounts and more than 250 financial institutions use the network.
In 2023, the Federal Reserve Banks are set to launch their FedNow service, providing a second option for financial institutions looking to access real-time payments.