CHAPS Co welcomes ClearBank® as a Direct Participant

CHAPS Clearing Company Limited, the UK’s same day high-value payment system, welcomes ClearBank® as a shareholder and Direct Participant in CHAPS with immediate effect.

ClearBank® is the second new member to sign up this month, following Bank of China Limited’s decision to join earlier in May. The latest addition brings the total number of CHAPS Direct Participants to 26 with several more major institutions set to join before the end of next year.

Launched in February 2017, ClearBank® delivers open access to payment, current account and transactional clearing services. Financial services organisations, from banks and building societies through to new challenger banks and Fintechs, will be able to process payments and offer new competitive transactional banking services.

Nick Ogden, ClearBank® Executive Chairman, said: “ClearBank® is the first new clearing bank in more than 250 years, delivering full and direct access to all of the UK payments infrastructure. We started talking to CHAPS in 2015 as a key component of our strategy to open access and create competition. As the first bank to connect to all the UK payment schemes concurrently, CHAPS worked with us to agree an ambitious timetable which I’m delighted to say we have met. The support and commitment from the CHAPS teams ensured that we achieved this key business goal.” 

Tim Fitzpatrick, Chief Executive of CHAPS Co, said: “We are delighted to welcome ClearBank® to CHAPS as a shareholder and full Direct Participant. As the UK’s fifth clearing bank, ClearBank® delivers a new level of open competition and transparency to the UK financial services marketplace, meeting with CHAPS’ priorities and goals. We look forward to working closely with them as we continue to develop our service for the benefit of all our users.

ClearBank’s® participation reinforces the growth in our participation base and we expect to see more institutions joining CHAPS  in the future.”

CHAPS continues to be one of the largest RTGS systems in the world, offering efficient, individually settled and irrevocable same day payments to meet the sterling RTGS payment requirements of its Direct Participants.

ClearBank® launched on 28 February 2017 and became a direct participant of Faster Payments on that date.

 

ClearBank® is the UK’s first new clearing bank in more than 250 years. It delivers a new level of open competition and transparency to the UK financial services marketplace.

Only the fifth UK clearing bank today, ClearBank® is neutral, independent and is not constrained by legacy infrastructure.

Our state-of-the-art technology transforms the ability for financial services providers, FCA-regulated businesses and Fintechs to provide Current Accounts to their customers, resulting in faster and more efficient payments, whilst delivering financial inclusion. For further information, please go to: https://Clear.Bank

 

CHAPS is the UK’s electronic payment system that guarantees same day settlement finality for high-value payments. It is at the heart of the UK’s payments and financial infrastructure.

The total value transmitted in CHAPS in 2016 grew by 10.5% to a record £75.6 trillion, on average £299 billion daily from its then 24 Direct Participants who, in turn, serve several thousand other financial institutions on an indirect basis (as Indirect Participants).

On 9 May 2017, The Bank of England set out its blueprint for a renewed Real-Time Gross Settlement (RTGS) service that will deliver a resilient, flexible and innovative sterling payment system for the UK to meet the challenges posed by a rapidly changing landscape. As part of the blueprint the Bank has concluded that financial stability would be enhanced if the UK’s high value payment system (HVPS) adopted the ‘direct delivery’ model used in the overwhelming majority of jurisdictions globally. This conclusion has been endorsed by the independent Financial Policy Committee and responds to recommendations made by the IMF. Following transition to direct delivery, the Bank will become the HVPS scheme operator (currently CHAPS Co), alongside the Bank’s existing responsibilities for operating the RTGS infrastructure. Direct delivery will give the UK a world-leading HVPS, enabling a single entity to manage risks right across the system, and building on the important progress already achieved by CHAPS Co in recent years. The Bank is working with CHAPS Co and its stakeholders to deliver a swift and orderly transition: the aim is to have heads of terms ready by July, with the transition completed in the latter part of 2017. For more information visit www.chapsco.co.uk