“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,” Bill Loving, the ICBA chairman and president and CEO of West Virginia-based Pendleton Community Bank, said. “ICBA strongly believes that an accelerated transition to same-day ACH is vital to all financial institutions and customers.”
The ICBA said in its white paper, “Same-Day ACH: An Opportunity for Leadership,” the capabilities level the playing field between larger institutions and community banks. The organization also said the services reduce settlement risk, enable the faster flow of money and support emerging payments.
Additionally, the ICBA recommended that community banks adopt same-day ACH services, encourage correspondent institutions and providers to adopt and support same-day ACH services, collaborate to identify uses and geographies for collective participation among institutions where same-day ACH is valuable and encourage regional payments associations to advocate for the services.
“We are excited that same-day ACH has received such strong support from ICBA,” First Vice President of the Federal Reserve Bank of Atlanta and Federal Reserve Retail Payments Product Director Marie Gooding said. “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.”