In order to maximize liquidity for participating financial institutions, the Clearing House Interbank Payment System (CHIPS) extended its processing hours to overlap the business hours in Asia. By expanding its processing day, CHIPS will be able to serve the Asian market better, says Jim Mohr, COO, CHIPS.
"We can now offer a better product to Asian customers," he says. "There was need there, and in a response to that need, we extended our hours."
The expanded hours allow customers to receive payments on the same day that the transaction is conducted, rather than waiting for the next business day, as they did before the hours were extended, Mohr explains. This will give businesses more control of cash management, he says. "For example, if a shipping company is waiting for payment before they release goods to a buyer, they can release goods today" if they know the funds have been deposited, he adds.