May 2, 2022
Bankers’ Bank Funding Agent Connects to the API Gateway for the RTP® Network
Bankers’ Bank Funding Agent Smart Liquidity℠ automates the adjustment of funding position limits
via the RTP APIs, eliminating the need for manual intervention.
Madison, WI and Nashville, TN – Bankers’ Bank, a correspondent bank that specializes in providing banking products to community banks, is live with its Funding Agent Smart Liquidity℠ module. Funding Agent Smart Liquidity℠ connects to The Clearing House (TCH) RTP® network API (Application Programming Interface) Gateway so Bankers’ Bank on behalf of its financial institution clients can better manage liquidity activities like updating transaction processing limits. Bankers’ Bank worked with CGI to connect to the RTP API Gateway. CGI is a global IT and business consulting services firm and leader in innovative payment programs and solutions.
Bankers’ Bank Funding Agent Smart Liquidity℠ monitors bank activity 24×7 and responds accordingly. Specifically, the module receives and is responsive to the TCH RTP Status Notification Messages (SNMs), alerting Bankers’ Bank personnel when a community bank’s net position in RTP falls below a predetermined amount, which may in turn cause the community bank to exceed the transaction processing limit that Bankers’ Bank previously established for the community bank. When such alerts are received, Smart Liquidity℠ checks for unusual activity and evaluates the community bank’s overall position. If the community bank is in good standing and no abnormal activity is detected, the Smart Liquidity℠ module calls the TCH API Gateway to update of the community bank’s transaction processing limit. This automated update allows the community bank to continue to transact without the need for Bankers’ Bank to manually update the transaction processing limit through the TCH RTP management portal.
Bankers’ Bank brought the first funding agent participant live on the RTP network in 2020, and now Bankers’ Bank is the first to offer automated adjustment of transaction processing limits. “We believe in and fully support The Clearing House’s mission to provide real-time payments to all depository institutions and working with CGI to bring the technical know-how and strategy to provide the value and benefits of this API opportunity,” said Matt Sitkowski, Executive Vice President & Chief Operating Officer of Bankers’ Bank. “We continue to be a payments innovator for community banks and look forward to bringing more faster payments innovations to help community banks across the United States.”
The “update tracking position limit” API helps funding agents like Banker’s Bank manage their linked participants’ transaction processing limit in the RTP network. For instance, Banker’s Bank is using this API to automate the previously manual process of setting their participants’ position limit. This enables Banker’s Bank to more efficiently support their financial institution’s RTP credit send functionality. “We are excited that Bankers’ Bank is taking advantage of the capabilities that are available through the RTP APIs.” said Susan Meyer, Vice President of RTP Product Development at The Clearing House. “We introduced APIs so that financial institutions, their funding agents and third-party service providers can utilize APIs to easily and efficiently perform functions previously only offered through the RTP management portal.”
“We are proud to continue to work with Bankers’ Bank and The Clearing House,” said John Manta, Senior Vice-President of Midwest Operations at CGI. “Funding Agent Smart Liquidity℠ enables banks of all sizes to compete and transact on the RTP network and positions community banks to send RTP payments.”
The RTP network gives the banking industry a modern platform for domestic payments, complete with rich data capabilities and immediate payment confirmation. The system enables instantaneous settlement and availability of funds to recipients, so those funds can be used or withdrawn as cash within seconds. The RTP network currently reaches 61% of U.S. demand deposit accounts and all federally insured depository institutions, regardless of size, can join the network. Since its introduction in 2017, the RTP network has offered a flat pricing structure for all depository institutions regardless of size that does not have monthly fees, volume discounts or minimum volume requirements.
About Bankers’ Bank
Bankers’ Bank, is a bank-owned correspondent based in Madison, Wisconsin, since 1981. Bankers’ Bank is the Midwest’s leading provider of banking services to community banks in Wisconsin, Illinois, Indiana, Iowa, Ohio, Michigan and beyond. As an independent source of non-competing financial services, the Bank serves a market of over 700 financial institutions. The Bank does not serve the public so it never competes with client banks for business. More information is available on our website at www.BankersBank.com.
About The Clearing House
The Clearing House operates U.S.-based payments networks that clear and settle more than $2 trillion each day through wire, ACH, check image, and real-time payments. It is the nation’s most experienced payments company, with a long track record of providing secure and reliable systems, payments innovation, and strategic thought leadership to financial institutions. In 2017, The Clearing House revolutionized U.S. payments by introducing the RTP® network, which supports the immediate clearing and settlement of payments, along with the ability to exchange related payment information across the same secure channel. These RTP capabilities enable all financial institutions to offer safer, faster, and smarter digital transaction services for their corporate and retail customers. Learn more at www.theclearinghouse.org.
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 84,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2021 reported revenue is C$12.13 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.