This year’s Payments Management Conference was buzzing with talk of Same Day ACH. Our slate of industry experts and speakers addressed critical issues surrounding Same Day ACH, which revolved around three key topics—innovation, origination, and risk.
With the implementation of Phase 1 going into effect on September 23, 2016, now is a good time to revisit the key topics from this year’s conference as they related to Same Day ACH, specifically, innovation, origination, and risk.
In the Opening General Sessions, panelists issued a clarion call to innovation, which was a recurring theme from beginning to end. The two ACH Operators, the Federal and The Clearing House, also weighed in on the topic of innovation, pointing to competition as one of the key drivers of change. As Alex Romeo, vice president and EPN product manager at The Clearing House, pointed out, “Competition breeds innovation, which is good the industry and its members and customers.”
And speaking of competition, it may be the very thing that drives financial institutions to consider origination. There is a lot to consider when weighing the benefits and risks or origination, and conference speakers offered practical tips and tools for assessing whether origination might be the right move for your organization. But the bottom line was this: Consider origination based on your organization’s needs and business goals.
Of course, many financial institutions will decide whether or not to originate based on their risk tolerance. Granted, there are risks financial institutions need to be aware of when it comes to origination. But there are also ways in which to mitigate those risks. Conference speakers urged attendees to start by putting preventive versus protective controls in place.
Phase 1 of Same Day ACH implementation is just a little over a month away. The clock is ticking, and the time to act is now. As your industry partner, will continue to develop tools and resources to help you prepare for the path ahead. So watch for new additions to Pacing Payments in the weeks and months ahead.
To dive deeper into these topics and more and to find out what three questions your organization should be asking if you’re considering origination, check out the full conference article, “Same Day ACH: Innovation, Origination, and Risk.”