The companies are accomplishing this by jointly covering the cost of the onboarding fees for minority-owned depository institutions (MDIs) that leverage JHA PayCenter™ to connect to the RTP® network.

The FDIC defines MDIs as any federally insured depository institution with 51 percent or more of the voting stock owned by minority individuals. Minority banks and credit unions are key contributors to their local economies and often provide financial services for many individuals and small businesses that are historically underserved and often susceptible to predatory lending practices, such as exorbitant interest rates or check-cashing services that charge high fees.

Tede Forman, head of consumer and commercial payments for Jack Henry & Associates, said, "Many communities served by MDIs need access to flexible, faster payments which can help prevent missed payments, avoid late fees and penalties, protect credit scores, and improve cash flow and financial health. This exciting program enables Jack Henry to financially partner with The Clearing House to give these financial institutions parity with larger institutions and hopefully prevent many consumers and small businesses from being underbanked."

Jim Aramanda, president and CEO, The Clearing House, added, "Demand for faster payments has never been higher, and all Americans deserve to enjoy the benefits that can help solve many customer cash-flow concerns. By easing the access to our real-time payments network for minority-owned banks and credit unions, many individuals and small businesses in these communities can reap the benefits of faster funds availability."

Real-time payments processed on the RTP network provide consumers and small businesses with the ability to receive payments 24 hours a day, seven days a week, with immediate confirmation of payment receipt. These capabilities help put the customer in control of their payments and could dramatically reduce the use of check-cashing services, or dependence on slower payment methods, such as checks or even ACH, that may lead to late fees and penalties. Small businesses served by MDIs with JHA PayCenter and the RTP network will have the ability to receive payments immediately, which will allow them to pay workers or purchase inventory or supplies on the same day.

Currently, Jack Henry has more than 115 financial institutions live on its faster payments hub, JHA PayCenter. These clients represent most of the financial institutions currently live on the RTP network to date.