New York – PNC Bank has joined the CHIPS network from The Clearing House to clear and settle high-value and cross-border payments.
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.”
CHIPS patented liquidity savings algorithm also matches and nets payments, resulting in an extremely efficient settlement process.
Financial institutions in the U.S. and around the world rely on CHIPS to clear and settle USD payments reliably and with settlement finality. CHIPS is the largest private sector USD clearing and settlement system in the world, settling an average of $1.7 trillion in payments per day on a comparatively small funding base. The liquidity efficiency of CHIPS is presently 27:1, meaning that $1 in funding contributed to the network supports almost $27 in settled value, with most payments settling in mere seconds.
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.
About The Clearing House
The Clearing House operates U.S-based payments networks that clear and settle more than $2 trillion each day through wire, ACH, check image, and instant payments. It is the nation’s most experienced payments company, with a long track record of providing secure and reliable systems, payments innovation, and strategic thought leadership to financial institutions. Most recently, The Clearing House has revolutionized U.S. payments infrastructure with the RTP® network, which supports the immediate clearing and settlement of payments, along with the ability to exchange related payment information across the same secure channel. These RTP capabilities enable all financial institutions to offer safer, faster, and smarter digital transaction services for their corporate and retail customers. Learn more at www.theclearinghouse.org.
About PNC Bank
PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
The Clearing House