Rich Clow's Role and Team:

• Rich Cloud leads payment innovation at Bank of America.
• Focus on evaluating new technologies and solutions.
• Assessment of new networks, checkout solutions, and step-function capabilities.
• Pro-stage gated process for evaluating and validating solutions.
• 75% of his time dedicated to consumer and small business solutions.
• 25% of the time with the GTS function, bringing Bank of America capabilities to large corporates.

Real-Time Payments Basics:

• Real-time payments involve instant settlement of funds between banks.
• Reduces risk and friction compared to existing frameworks like ACH.
• Credit transfers with an evaluation of account standing before sending.

Importance of Real-Time Payments:

• Speed of funds transfer is the essence of real-time payments.
• Enables the development of innovative solutions for consumers and corporates.

Consumer Transactions with Real-Time Payments:

• Immediate confirmations in consumer transactions.
• Improved bill pay experience with proof of fund availability.
• Introduction of "Request for payment" user experience.

Corporate Implications of Real-Time Payments:

• Significant opportunities for collections departments.
• Ensures timely payments with proof of fund availability.

Real-Time Payments Landscape:

• Two main networks for real-time payments in the United States: FedNow and the Clearing House.
• Similar to the existence of multiple networks for ACH and wires.
• Competition is expected to drive better innovation, cost, and terms, similar to Visa and MasterCard in the card payments space.

Fintech and Developer Impact:

• Successful FinTechs leverage tools and standards from networks to create innovative user experiences.
• Integration of standards like ISO 8583 and ISO 20022 into businesses and applications.
• Continuous innovation in payment flows, such as virtual cards for B2B payments.

Looking Forward:

• Real-time payments are considered transformative in the payment landscape.
• Predicted to be a major shift in payment experiences, comparable to the evolution from knuckle-buster credit card authorizations to modern payments.
• Global adoption of real-time payments in various markets, with the U.S. learning from international experiences.
• Emphasis on collaboration and partnerships to accelerate innovation and time to market.
• Acknowledgment that real-time payments will play a significant role in the majority of payment settlements globally.
• Recognition of the need for inspiration from markets ahead in real-time payments, fostering a collaborative and iterative approach to innovation.

Find Rich on Linkedin