Bank of New York is expected to be chosen by the Treasury Department to take over a
Though Bank of New York, the nation's oldest bank, is not a retail bank, it has been
Last year, BNY formed an alliance with MoCaFi, a Black-founded fintech platform, to provide payments through BNY's Vaia platform, which allows governments and corporate users to send disaster relief, financial aid and employee payroll payments to consumers who are underbanked.
In 2021, BNY took part in the Treasury's financial agent mentor-protege program by expanding its relationship with Optus Bank, a $350 million-asset bank in Columbia, S.C. At the time, it gave Optus $3 million to supplement the institution's investments in low- and moderate-Income communities.
The Treasury did not respond to a request for comment. BNY declined to comment.
Comerica disclosed on Friday that it had received preliminary notification from the Treasury that it was rejected in its bid to renew the Direct Express contract. The $71.8 billion-asset Texas bank's five-year contract with the Treasury expires in 2025. Comerica first won the contract in 2008, and it was renewed in 2014 and 2020.
Comerica had a tough time operating the program. It faced
There is considerable interest among banks to adopt multiple faster payment services that run on bank-supported payment rails — including Zelle, Same Day ACH, The Clearing House's RTP network and the Federal Reserve's FedNow, though there is a stubborn lack of
An estimated 4.5% of U.S. households, or 5.9 million Americans were unbanked in 2021, meaning they did not have a checking or savings account at a bank or credit union. Another 14% of householders, or 18.7 million people are underbanked, holding at least one bank account. For the government, there is a dire need to digitize payments to unbanked and underbanked consumers,
Real-time transactions in the U.S. are on pace to jump to 11.4 billion in 2026, up from 1.4 billion in 2021, according to