How and why Navy Federal got aboard instant payments
When the world's biggest credit union decides it's time to offer instant payments, competitors have to pay attention. And joining The Clearing House Real Time Payment Network is just Round One for Navy Federal, as it contemplates adding the FedNow service, too.
Navy Federal Credit Union went live on the Real Time Payments Network in early November and on its first full day received over $2.7 million in real-time deposits, setting a network record.
Adding Navy Federal to the network is strategic to The Clearing House, the private-sector group that runs several payments systems, including the RTP Network, according to Elena Whisler, chief client officer at TCH. The reason is its sheer size and its profile. Navy Federal, at $168 billion in assets and 13 million members globally, is not just the nation’s largest credit union, but the world’s largest.
Whisler explains that its size and retail banking focus should underscore the utility of instant payments to other credit unions, helping TCH recruit additional institutions to the network. As of early December 2023, RTP Network included around 470 financial institutions, 111 of which are credit unions. That leaves thousands of potential institutions that can join.
Admittedly, size is also a challenge. Getting a behemoth like Navy Federal into the system took an approach that was both broad and deep, and it was the antithesis of just “plugging in.” Sovan Shatpathy, Navy Federal’s senior vice president and chief technology officer, likens the experience to building a suburban subdivision from scratch, versus building a new house in an existing neighborhood.
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