PNC Bank has joined the CHIPS network from The Clearing House to clear and settle high-value and cross-border payments.
PNC Bank, one of the largest diversified financial services institutions in the United States, will now send payments via CHIPS, taking advantage of the CHIPS unique settlement algorithm, which helps clear a high percentage of volume earlier in the day. This not only reduces operational risk for PNC and for the payment system, it also enhances the customer experience by allowing PNC’s clients to receive payments and access funds sooner.
“PNC is pleased to join CHIPS, providing our customers access to the preeminent high-value international and domestic wire transfer system,” said Chris Ward, executive vice president and head of product & operations, PNC Treasury Management. “PNC’s Treasury Management platform continues to bring dynamic payment solutions to meet our clients’ needs in this increasingly digital economy.”
CHIPS patented liquidity savings algorithm also matches and nets payments, resulting in an extremely efficient settlement process.
Financial institutions in the U.S. and around the world rely on CHIPS to clear and settle USD payments reliably and with settlement finality. CHIPS is the largest private sector USD clearing and settlement system in the world, settling an average of $1.7 trillion in payments per day on a comparatively small funding base. The liquidity efficiency of CHIPS is presently 27:1, meaning that $1 in funding contributed to the network supports almost $27 in settled value, with most payments settling in mere seconds.
CHIPS is the premier USD clearing platform for international payment activity, with approximately 95% of CHIPS payments having a cross-border leg. TCH continues to advance work to standardize CHIPS payment message formats, extend operating hours, and pursue other service enhancements to add value to CHIPS participants and make the network more robust.