Will your credit union be providing real time payments by 2024?

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr It’s Possible, just Possible, that yesterday marks a key development in how people send and receive payments. If I am correct then this is a change that will help all consumers and  all businesses, as well as all credit unions and community banks that will be able to compete with the banking behemoths in the years to come.Yesterday, if all goes according to plan, the Federal Reserve committed itself to implementing a real time payment system by 2024. That’s right by 2024 all credit unions and banks irrespective of their size and location will be able to clear checks, debits and credits instantaneously. 7 days a week, 24 hours a day, and 365 days a year.Why is this such a big deal? Do I really have to tell you? As the Fed put it yesterday in an FAQ and a Request for Comment accompanying its announcement “Everyone deserves the same ability to make and receive payments immediately and securely, and every bank deserves the same opportunity to offer that service to its community,” said Federal Reserve Board Governor Lael Brainard. “FedNow will permit banks of every size in every community across the country to provide real-time payments to their customers.” The Fed also noted that even though it was using the term bank it intended to give credit unions access to this platform. continue reading »last_img read more

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BTN upbeat over prospect of exceeding profit target as funding cost decreases

first_imgBank Indonesia (BI) has cut its benchmark interest rate four times by 25 basis points (bps) each so far this year in its effort to help the government cushion the adverse impact of the COVID-19 outbreak on the economy. At the same time, cooling economic activity has slowed loan demand and growth.Indonesian banks’ loan growth slumped to 1.49 percent year-on-year (yoy) in June from 3.09 percent in May. Meanwhile, third party funds grew 7.95 percent annually in June, slightly lower than 8.89 percent in May.The slowing loan demand helped improve BTN’s liquidity as its loan-to-deposit ratio (LDR) stood at 111.27 percent in the first half of this year, lower than 114.24 percent in the corresponding period of 2019. Its liquidity-to-coverage ratio (LCR), which measures a bank’s short-term liquidity resilience, rose to 132.22 percent in the first half of this year from 105.5 percent the year before.A lack of appetite for new loans, however,  resulted in the bank only recording 0.32 percent growth in loan disbursement as of June. The figure was far lower than the 18.78 percent recorded in the same period a year before. BTN, which focuses on mortgages, pocketed Rp 768 billion in net profit during the period, plunging by more than 41 percent annually. The steep drop was caused by a 5.86 percent annual decline in net interest income to Rp 4.44 trillion and skyrocketing loan-loss provision that went up 115.03 percent during the period.However, Pahala said the net profit figure was actually above the bank’s initial projection of around Rp 700 billion.“We’ve booked a pretty solid performance in the first half of this year so we are quite optimistic that we can exceed our target,” he said.BTN distribution and retail funding director Jasmin added that the bank’s ability to record positive, albeit slight, loan growth during the period was the result of increased demand for subsidized housing mortgages.“Subsidized housing mortgages grew 5.84 percent as of the second quarter of this year and this clearly shows that this will be our growth engine in the future,” he said.Although mortgages for non-subsidized housing contracted 1.96 percent during the period, Pahala said the segment had started to show signs of improvement in June.Demand for non-subsidized housing loans increased 40 percent in June compared to April and May, following the easing of large-scale social restrictions (PSBB), he added.BTN also reported a jump in its non-performing loan (NPL) ratio to 4.71 percent as of June, much higher than the 3.32 percent ratio recorded in the same period last year. It expects to further lower the ratio to 4.5 percent by the end of the year.The bank has restructured 36.46 trillion in loans from 230,000 borrowers as of June, with most of them being mortgage loans.“Customers can also extend their loan restructuring as long as they can provide proof that the pandemic has affected their income,” said Pahala.BTN shares, traded under the code BBTN on the Indonesia Stock Exchange (IDX), soared 3.72 percent as of 12:26 p.m. on Tuesday as the main gauge, the Jakarta Composite Index (JCI), jumped 1.13 percent. The stocks have lost 40.8 percent of their value this year.Topics : State-owned Bank Tabungan Negara (BTN) is optimistic that it will exceed its net profit target this year as the COVID-19 pandemic lowers its cost of funding.President director Pahala N. Mansury expressed his optimism on Monday that the publicly listed bank could book more profit than its initial projection of Rp 1.1 trillion (US$75.36 million) by the end of this year, supported by easing liquidity competition.“There is plenty of liquidity in the market right now as interest rates decline and loan demand slows, making competition for liquidity less fierce and helping us to improve our liquidity,” he said, adding that the bank’s cost of funding had decreased by 80 basis points during the first six months of the year from the same period last year.last_img read more

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Eaves happy after sweep

first_imgUW freshman forward Craig Smith found his scoring touch last weekend, netting two goals in a sweep over Alaska-Anchorage.[/media-credit]The Wisconsin men’s hockey team is 6-3-1 this season following a decisive weekend sweep of the University of Alaska Anchorage Seawolves. Winning 5-1 Friday and 6-2 Saturday, the Badgers wrapped up a 5-1 home stand at the Kohl Center.After struggling at the start of the season, going 1-2-1 over the first four games, the Badgers seemed to course-correct over their six-game stay in Madison.“The results are real good,” UW head coach Mike Eaves said. “You take a look at being 5-1 … overall, we couldn’t have asked for much more from the kids. We got ourselves rolling and it’s a good way to hit the road.”The only low point in the six games was a tough loss to Minnesota where Wisconsin was held to just two goals in a 5-2 loss Nov. 7.The Badgers lost to the Golden Gophers despite outshooting Minnesota, and generally out-chancing them. Goaltender Brett Bennett made his second start in a row and appeared jumpy out on the ice.“Sometimes it reminds you of your golf game,” Eaves said. “You know, you think you left a couple of birdies on the green.“[That’s] the one game I thought we could have done a little better. We could have scored a little bit more.”Craig Smith a new Paul RanheimFreshman forward and Madison native Craig Smith played a key role over the weekend against the Seawolves, scoring two goals and an assist. Those were the first goals of his career as a Badger. In addition, Smith has seven assists this season and is tied for second on the team in points with nine.Smith has drawn comparisons to former Badger and former NHL player Paul Ranheim.“I didn’t play with Paul,” Eaves said. “My recollection of Paul, as a pro, was that he was a tremendous skater. I know in the minors he scored about 66 goals one season, then he went up to Calgary and, you know, was a consistent goal scorer on high teams.”Last year Smith played with the Waterloo Black Hawks of the USHL, a junior league, and scored 28 goals for them, amassing 76 points total. He’s currently fifth in the nation in rookie points per game at 1.12.“Very focused, very good skater, very determined to put the puck in the net; all of those are things that were talked about about Paul Ranheim and the same could be said for Mr. Craig Smith,” Eaves said. “That’s a very good analogy.“I’m sure Craig would like to hear that.”Patrick Johnson maturingOne of Eaves’ philosophies is that coaches teach, but players must take ownership to make a good team. Junior Patrick Johnson has lately been doing exactly that, taking ownership — and the resulting maturation is showing, Eaves said.“There’s a bunch of things … that you wouldn’t see,” Eaves said. “Patrick Johnson getting the guys up during a TV timeout, talking to the guys about what we need to do. It’s starting to come (together).”Johnson is coming off of a down year with the Badgers. After scoring eight goals and 13 assists as a freshman, Johnson’s sophomore season left a lot to be desired. He scored just three goals and registered merely four assists. This year, Johnson seems to be getting back on the right track, with his first points this season, a goal and an assist, coming over the weekend series.“He’s come back this year a more mature young lad,” Eaves said. “What we’re trying to do this year is to get him to come to practice this year with more of a purpose … He’s playing hockey again the way that he needs to.”last_img read more

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