Update on Same Day ACH Implementation and Results of the Federal Reserve's Triannual ...

33 Pages·2017·1.12 MB·English

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Update on Same
Gary B. Nesbitt, AAP
GNesbitt Consulting
Day ACH & FRB
Sims Propst, SVP
Park Sterling Bank
Payments Study
Distinctive Franchise with Attractive Footprint
A “Regional Community Bank”
• $3.2 billion in total assets
• 551 employees
• 57 branches
• States
– North Carolina
– South Carolina
– Georgia
– Virginia
• Major Growth Markets
– Charlotte, NC
– Wilmington, NC
– Charleston, SC
– Greenville, SC
– Raleigh, NC
– Rock Hill, SC
– Richmond, VA
• Just announced plans to merge with
South State Bank in Columbia, SC.
– Will create a $14.5bb company
– Expanded coverage in Ga, NC
and SC.
– Virginia coverage as well
GNesbitt Consulting
• Independent consulting firm specializing in
banking and payment activities and issues.
• Our goal is to help financial institutions and
companies understand and comply with
myriad payment rules and regulations that
govern the payments landscape.
• We help organizations understand and
mitigate the risks associated with participating
in the various payment systems.
• We help organizations establish payment
programs that are efficient, effective and
compliant with all appropriate rules and
regulations.
Topics
• 2016 FRB Payment Study and Trends
• NACHA Stats
• Same Day ACH Update
2016 Federal Reserve
Payments Study
2016 Federal Reserve Payments
Study
This is the sixth triennial edition of the Federal Reserve Payments Study (2000, 2003, 2006, 2009, 2012,2015).
In partnership with GCI Insights, a division of McKinsey and Company,
Federal Reserve Retail Payments Office, and the Federal Reserve Board of
Governors
Study is referred to as 2016 Study but the data is primarily from 2015. The
study is typically released in December of the year following.
Study is comprised of three surveys-
▪ The depository institution study (1,384 respondents)
▪ The electronic payment study ( 101 respondents)
The study can be found under the research tab at www.frbservices.org
under the News and Communications/Research tab.
SOURCE: 2015 Federal Reserve Payments Study
2015 Federal Reserve Payments Study
– The study focuses on “non-cash” payments which include:
• Checks
• ACH debits and credits
• Debit Cards
• Prepaid Debit Cards
• Credit cards
– General Purpose (Visa, MasterCard, Amex, etc.)
– Private Label (Lowes, Macy, Belk, etc.)
– Electronic Benefits Transfer (cards issued by state or Federal government for benefits payments)
– 2015 Noncash Payments totaled 144.1 billion payments for a
value of $1,302 trillion
– This compared to the 2012 figures of 123.5 billion payments for a
value of $160.88 trillion
SOURCE: 2015 Federal Reserve Payments Study
Non-Cash Payment Trends
Check Trends
ACH and card types grew while checks
declined…
• Checks continued to decline in volume
– Many replaced by debit card or ACH debit
• Both ACH and card payments
continued to grow
• Debit card continues to grow as
traditional debit cards and prepaid
cards.
– Payroll cards have seen great acceptance
by both companies & employees
SOURCE: 2015 Federal Reserve Payments Study