Catalyst helps members gain a competitive edge with the FedNow® Service
Glenn Wheeler
Catalyst
Catalyst (Off-site) supports their member credit unions with innovative payments, asset management and liquidity solutions. Glenn Wheeler, vice president of payments strategy and product innovation, had this to say about the value of the FedNow Service for credit unions:
“From a payment solutions perspective, onboarding credit unions onto the FedNow Service is a critically important initiative. We’ve made it a priority to engage with our credit union members and clients throughout the United States and bring them live on the FedNow Service because we see this as a game-changer for financial institutions of all sizes.
“Catalyst aims to help our member institutions understand and manage the changes associated with instant payments so they can reap the benefits as soon as we bring them on board. We offer a holistic solution which enables credit unions to send, receive and settle transactions, along with receiving and originating requests for payment.
“A big benefit for credit unions leveraging the FedNow Service is that transactions settle in real time. Credit unions can leverage their existing account relationship with Catalyst for settlement of FedNow transactions, gaining efficiency in settlement and managing liquidity 24x7x365. Additionally, credit unions receive reporting for seamless reconciliation without the need to add additional back-office resources.
“This efficiency is critical as credit unions take advantage of instant payment rails. We’re excited by our recent success with indirect loan funding through key partnerships with loan servicers. Instant payments are especially valuable for these time-sensitive scenarios — at auto dealerships or with mortgage companies — as recipients can get funds right away, including on weekends. By enabling send through the FedNow Service, we’re better positioning credit unions to meet the demands of consumers and businesses and to remain competitive in the marketplace.
“Our member credit unions have come to understand that instant payments, while innovative, don’t require an overhaul of their payment solutions or backend processes. Instead, we encourage credit unions to think of things like risk mitigation as dependent on the use cases they’re targeting. Some use cases may require additional efforts or a change to some of their transaction guardrails, but most credit unions will find there are use cases they can enable right away with the tools they have in place.
“The flexibility of the FedNow Service means that, regardless of target use cases or asset size, instant payment adoption can be seamless and easy. This payment rail helps level the playing field for credit unions, and it’s an opportunity for these institutions to maintain — or even build — business in a very competitive market. Catalyst is meeting credit unions where they're at, filling in the gaps that may prevent them from remaining competitive, and providing solutions that make instant payments more accessible. From our perspective, it’s only a matter of time before we achieve instant payment ubiquity for all.”
Want to see what other organizations have to say about the FedNow Service? Read more FedNow customer testimonials here.