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Real-Time Payments Driving Real-Time Liquidity: Deutsche Bank

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A new report from Deutsche Bank said this industry path is guiding banks and corporates to a new destination: real-time treasury. Yet, as these caps rise across the globe, treasurers are likely to see disruption.

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Third Parties Help Central Banks Ride RTP Rails

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In fact, the number of Same Day ACH transactions rose by 192 percent in Q3 2018 over the same period from the previous year. Many of the central banks that launched their real-time gross settlement (RTGS) systems more than a decade ago are seeking to replace these aging systems with new ones.

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TRENDING: Inside Hong Kong’s New Faster Payment System

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Last year, only 25 real-time payment systems were operational worldwide — that number is growing rapidly. Demand is also heating up for real-time gross settlement (RTGS) systems. The governor of the Federal Reserve is pushing conversations on getting an RTGS system in the U.S.,

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The Big Tech Canary In The Faster Payments Coal Mine

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This access, the letter says, will eliminate the bottlenecks of working through intermediaries while extending the reach of real-time payments to those who need it. Currently, access to the Fed’s Real-Time Gross Settlement (RTGS) system is limited to financial institutions that hold deposits.

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SIA’s Third-Party Approach To RTGS

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By 1990, many countries had real-time gross settlement (RTGS) systems in place to rapidly clear and settle high-value transactions. But as countries continue to demand more from their RTGS offerings, many are realizing that their aging services no longer meet their needs.