Post written by Ian Berryman, Assistant Manager, Cash Management Support
Innovation is often defined as the creation of new ideas, products or processes.
At Stockman Bank, we define innovation a little differently.
We believe that innovation requires not only fresh ideas, but also improvement. And we work hard to apply that definition to the products and services we offer.
In addition, we strive to improve our industry as a whole by collaborating with other stakeholders to reimagine banking for our customers in an increasingly digital world.
The National Automated Clearing House Association (NACHA) oversees and regulates the ACH network in the United States.
ACH transactions provide the backbone for many of the electronic funds transfers in use today.
This includes everything from direct deposit of payroll, check conversion, bill payments, debit card transactions and point-of-sale transactions, as well as PayPal, Venmo and other person-to-person (P2P) transfers.
In fact, in 2017 the ACH network processed 21.5 billion transactions totaling 46.8 trillion dollars!1
As part of our efforts at Stockman Bank to improve our industry, we submitted a proposal to the NACHA Challenge, an international competition open to corporations, think tanks and financial institutions to find creative solutions to complex problems within the payments industry.
The focus of this year’s challenge was finding simple ways for businesses and consumers to provide their bank account info without the need to recall their account and routing numbers.
Other organizations submitted proposals, but only four teams were selected to present at NACHA’s annual PAYMENTS conference for thousands of payments experts from around the world.
The four finalists consisted of teams from Stockman Bank, IBM, Alacriti and Redwood Credit Union.
I had the pleasure of leading the Stockman Bank team in the competition and presenting our proposal at the conference.
Our solution is simple: let customers provide account information in an easy-to-remember access code, much like an email, without requiring major infrastructure changes to the banking industry.
Our competitors also proposed innovative solutions leveraging new technologies and creative systems, but I ‘m proud to announce that Team Stockman Bank was selected as the Audience Choice Award winner for the 2018 NACHA Challenge, reaffirming our commitment to innovation and the improvement of our industry.
In addition to the NACHA Challenge, I was able to gain a valuable perspective on the future of the payments industry while attending the conference… and the future is faster.
We’re rapidly approaching a future where days and hours will be replaced with minutes and seconds for everything from new account opening to settlement of electronic funds transfers.
With these advancements come certain risks, but new technologies and processes are enabling financial institutions to prepare, analyze and execute strategies to mitigate risk faster and more effectively than ever before.
At Stockman Bank, our dedication to our customers guides us as we innovate and implement new tools and services to protect our customers’ assets and help them achieve their goals.
1 NACHA, https://www.nacha.org/resources/ach-network-volume-and-value-2017, Retrieved: 5/10/2018