Mashreqbank, the largest private bank in the United Arab Emirates and the second oldest in the country, is now using Chips, the real-time, large dollar payments system operated by The Clearing House Payments Company.
"CHIPS enables Mashreqbank to clear and settle payments faster and less expensively than it has in the past," said Ricardo Benitez, Client Services Manager of Mashreqbank. "CHIPS is a world-class platform that provides Mashreqbank with new capabilities to meet the bank's growing volume of wire transfer payments safely and securely."
CHIPS is the world's premier private-sector USD wire transfer system. CHIPS streamlines operations for financial institutions, with features such as multilateral netting -- a patented process that maximizes the use of liquidity without daylight overdraft charges. A single dollar in the CHIPS system turns over on average 600 times a day and is used by the netting process to clear payments throughout the day.
The participation of Mashreqbank is part of CHIPS' broader initiative to serve the increasingly global needs of banks in emerging economies around the world.
"Mashreqbank is a fast-growing institution that was looking for a wire transfer solution that could help manage its rapidly expanding volume of payments," said Hank Farrar, Senior Vice President of The Clearing House, responsible for CHIPS. "By connecting with CHIPS, Mashreqbank will significantly reduce costs and will benefit from a system that delivers payments finality in a totally secure environment."