In 2024, The Clearing House Interbank Payments System (CHIPS) reported over $5.1 billion in annualized economic savings, averaging $14.3 million daily, due to its patented liquidity savings algorithm, according to a release from TCH on Feb. 17.

The algorithm enhances liquidity efficiency by continually matching and offsetting payments, enabling financial institutions to settle large-value payments with minimal funding, the release stated.

In 2024, CHIPS achieved a liquidity efficiency ratio of 29:1, meaning each dollar of intra-day funding supported $29 in settled payments. This efficiency facilitated approximately $321 billion in daily liquidity savings, allowing banks to allocate capital more effectively toward lending and investments.

CHIPS also plays a crucial role in financial stability by providing institutions with flexibility to manage unexpected market shifts and mitigate systemic risks. As the largest private-sector high-value clearing and settlement system globally, CHIPS processes an average of $1.9 trillion in payments daily, with about 95% representing the U.S. dollar leg of international transactions.

The growth of real-time payment networks is growing as retail customers and businesses adopt the payment channels, Jim Colassano, senior vice president of business product management at TCH, previously told Bank Automation News, adding that nearly 99.6% of all real time payments were made on RTP in 2024.

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