The Federal Reserve Bank of Atlanta have selected IBM to help modernise its automated clearing house (ACH) processing systems.
They will implement IBM’s Financial Transaction Manager (FTM) software, a processing platform that will help it to more effectively process the billions of ACH transactions that occur each year.
According the IBM, its FTM software will enable the Federal Reserve Bank to input, process, clear, settle and provide billing/accounting functionality across all ACH payments in each of the 12 districts that comprise the Federal Reserve system.
Once fully implemented, IBM’s FTM solution will be capable of processing up to 100 million transactions per day, or approximately half of all ACH payments in the US.
“By modernizing our payments systems, we will be well positioned to converge our existing retail payment operations and payment infrastructure onto a unified platform,” said Senior Vice President of the Retail Payments Office of the Federal Reserve Bank of Atlanta, Brian Egan.
“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”.
Keith Melton, IBM’s Commerce Payments Director, said that the company are committed to providing customers with a modern payment processing platform that will improve the way in which global payments and transactions are carried out.
“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,” added Melton.