Catalyst News

Ensuring Credit Unions a Seat at the Faster Payments Table

by Catalyst Corporate | Jul 07, 2020

What began as a simple request for proposal from Catalyst Corporate for third party ACH services for its members has grown into a much larger opportunity for credit unions across the country to have a seat, and a voice, at the national faster payments table.

Such was the message shared by Catalyst Corporate’s Senior Vice President, Chief Operating Officer Brad Ganey in a recent interview with Tamra Gaines, Cornerstone Credit Union League Vice President of Training & Development. The interview, which focused on innovation in the payments industry and Catalyst Corporate’s recent acquisition of Georgia-based real-time and electronic payments provider Aptys Solutions, was part of the League’s 2020 CU Impact Week.

The Aptys acquisition, made by a credit union service organization formed by Catalyst Corporate, Alloya Corporate and Vizo Financial Corporate in late May, accomplishes the goal of creating a national consolidated payments platform with tremendous volume and number of individual and retail institutions served, Ganey told Gaines. In addition to ACH services, Aptys offers a full complement of payment solutions, including wire, check, fraud prevention and person-to-person services.

“We can now come to the table on behalf of credit unions and have a much bigger stick, if you will, as we look at the competition,” Ganey said, noting that the collaboration between Aptys and the three corporate credit unions opens the door to thousands of financial institutions. He said the ultimate vision is of a consolidated, holistic payments platform that is easy to use and provides greater tools and features for credit unions to serve, for example, their business members and select employee groups.

“Large banks have created consortiums through large acquisitions of fintechs,” he said.” This [new national payments platform] gets us into the fintech game and gives credit unions the voice to come on a united front and have a very real impact, telling our own story, creating our own solution.” 

Ganey said Catalyst Corporate’s evolutionary role in payments processing over the years has provided a natural progression for a national payments platform. As paper checks transitioned to image exchange, he said Catalyst focused internally on creating cost-effective back-office efficiencies for credit unions. It then began to develop deposit solutions with its TranzCapture software, eventually partnering with Alloya Corporate and Corporate One to aggregate share draft and deposit services through the TranzCapture LLC CUSO.

“The TranzCapture experience grew us into a wholesale aggregator model, allowing us to process for other corporates. That scale is important for payments because volume drives costs down.”

Faster payments and real-time payments are critical, and they are ramping up today as more people are working from home, Ganey said. “Aptys has a real-time P2P solution, Paymoli, already in production. This will afford credit unions the ability to connect now and in the future with such real-time solutions such as The Clearing House RTP or Federal Reserve FedNow services.”

Ganey, who has been with Catalyst Corporate since 2000, oversees the corporate's payments operations. Prior to joining Catalyst, he worked with the Federal Reserve and in the commercial banking industry.  

You can view the Ganey/Gaines interview here.