The Federal Reserve Bank of Atlanta’s Retail Payments Office has tapped technology giant IBM to upgrade its automated clearing house (ACH) processing platform.
The Federal Reserve works as the central operator during ACH operations to ensure that electronic payments clear and settle between commercial banks.
It would deploy IBM’s Financial Transaction Manager (FTM) to process the vast quantities of ACH and check payment transactions that flow through its systems electronically.
The technology giant claims that its IBM FTM for ACH software will allow the Federal Reserve Bank to input, process, clear, settle as well as offer billing and accounting functions for all ACH payments across Federal Reserve system’s 12 districts.
IBM commerce payments director Keith Melton said: "IBM Financial Transaction Manager simplifies the management of high volume global payments onto a single efficient payment hub to help make payment processing more efficient and transparent. It also provides financial institutions a powerful tool to better serve their corporate customers."
Federal Reserve Bank of Atlanta Retail Payments Office senior vice president Brian Egan added: "By modernizing our payments systems, we will be well positioned to converge our existing retail payment operations and payment infrastructure onto a unified platform.
"This will enable us to process payments more cost effectively and position us to more quickly adapt to changes in the ACH and electronic check payments environment. Both of these outcomes are consistent with our strategies to continue to provide financial institutions with high quality and cost effective ACH and electronic check clearing services."