The race is on to reinvent settlement. As customer demands for faster settlement times increase, and new technologies come online, banks are under pressure to meet their clients’ heightened needs
PNC Treasury Management, part of PNC Financial Services is adopting Ripple’s technology for cross-border payments. PNC is one of the ten largest banks in the US. The announcement means PNC customers will be able to receive real-time cross-border payments.
PNC is now one of several banks using Ripple as an alternative to SWIFT. As one of the ten largest banks in the country, the launch of PNC is a big step for RippleNet. Commercial clients of the bank can now use the network to receive international payments almost instantly, thanks to Ripple’s technology.
PNC Bank, one of the largest diversified financial services institutions in the United States, will now send payments via CHIPS, taking advantage of the CHIPS unique settlement algorithm, which helps clear a high percentage of volume earlier in the day. This not only reduces operational risk for PNC and for the payment system, it also enhances the customer experience by allowing PNC’s clients to receive payments and access funds sooner.
“PNC is pleased to join CHIPS, providing our customers access to the preeminent high-value international and domestic wire transfer system,” said Chris Ward, executive vice president and head of product & operations, PNC Treasury Management. “PNC’s Treasury Management platform continues to bring dynamic payment solutions to meet our clients’ needs in this increasingly digital economy.”
The Clearing House Interbank Payments System (CHIPS) is the primary clearing house in the U.S. for large banking transactions. As of 2015, CHIPS settles over 250,000 of trades per day, valued in excess of $1.5 trillion in both domestic and cross-border transactions. CHIPS and the Fedwire funds service used by the Federal Reserve Bank combine to constitute the primary network in the U.S. for both domestic and foreign large transactions denominated in U.S. dollars. CHIPS works by netting debits and credits across transactions, providing both clearing and settlement services to its customer banks.
CHIPS is the premier USD clearing platform for international payment activity, with approximately 95% of CHIPS payments having a cross-border leg. TCH continues to advance work to standardize CHIPS payment message formats, extend operating hours, and pursue other service enhancements to add value to CHIPS participants and make the network more robust.