Real-time payments will help credit unions provide necessary financial services to their members and improve access to funds, CUNA wrote to the Senate Banking Committee Wednesday for the record of its faster payments hearing.

The letter notes that CUNA and its members strongly support the Federal Reserve’s decision to develop and operate a real-time payments network, and also support efforts of The Clearing House (TCH) to develop its own real-time payments network.

“Credit unions exist to help their members but cannot do it alone. Credit unions rely on networks of key vendors to provide service to members and no current vendor is more critical than the Federal Reserve… We think the efforts by the Federal Reserve Board and the TCH will help to bring real-time payments to consumers, who will benefit from the innovation and clarity of a faster payment system,” the letter reads.

CUNA believes that, from a pre public policy standpoint, having multiple real-time payments networks will ensure a more robust banking system, allowing for better protections against cyberattacks and technical glitches, as well as the innovation that comes from competition.

“CUNA looks forward to continuing to work with Federal Reserve Board leadership and staff on FedNow and will continue to support TCH’s efforts as well,” the letter reads. “Nonetheless, the development of FedNow is imperative to the continued success of credit unions and community banks and is likely the only way that all credit unions will be able offer Americans of modest means critical financial services in the future.”

The letter also notes that the Federal Reserve is the only vendor that works with nearly all credit unions ands has the bandwidth and expertise to provide services to the entire financial services sector.