Wrestling with Change

04/25/24 • 20 min

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Episode Summary

In this episode of Wrestling Payments, Joe Casali sits down with Charlie Kelly from Remedy Consulting. They dive into the evolving landscape of payment systems. Charlie shares insights from his vast experience, focusing on core conversions, contract negotiations, and the challenges community banks and credit unions face.

Charlie emphasizes the importance of navigating the complexities of payment system upgrades. He highlights how Remedy Consulting aids institutions in understanding their core provider's language and the broader ecosystem. This support is crucial for making informed decisions during core negotiations or considering conversions.

The conversation also explores the intricacies of connecting traditional banking systems with emerging fintech solutions. Charlie discusses the hurdles in integrating new technologies with established banking infrastructures. He stresses the balance between innovation and maintaining security and reliability in payment systems. This episode offers a glimpse into the critical role of consultancy in simplifying and guiding financial institutions through technological transitions.

Guest-at-a-Glance
Charlie Kelly
Partner at Remedy Consulting and Host of BankTalk Podcast
Remedy Consulting
Charlie Kelly brings a wealth of experience from his tenure at one of the nation's leading core providers, focusing on project management, pricing, and contracts. Now at Remedy Consulting, he specializes in helping community banks and credit unions navigate complex payment system conversions and negotiations.
LinkedIn

Key Insights
Navigating the Maze of Payment System Upgrades

Charlie Kelly discusses the intricate process involved in payment system conversions, emphasizing the common pitfalls financial institutions encounter. A significant challenge highlighted is the misalignment between digital providers and core systems, which often lack seamless integration. This disconnection can lead to costly mistakes, such as the cancellation of nearly finalized contracts due to unrecognized incompatibilities. Kelly’s expertise shines as he guides institutions through these complex negotiations, ensuring they make informed decisions that align with their technological and financial goals.

Modernizing Financial Systems: A Delicate Balance

The episode dives into the difficulties of integrating cutting-edge fintech solutions with legacy banking systems. Charlie Kelly points out the vast gap between the innovative ideas emerging from fintech startups and the reality of incorporating these into the established infrastructure of traditional banks. The biggest hurdles are the entrenched systems of larger providers, which are not easily adaptable or open to prioritizing new fintech integrations. This insight underscores the crucial role of consulting services like Remedy Consulting in facilitating this integration, ensuring that banks can innovate while maintaining the reliability and security of their payment systems.

The Crucial Link: Consultancies in Payment Innovations

Charlie highlights the essential role of consultancies in assisting community banks and credit unions with navigating the complexities of payment system upgrades and core conversions. By acting as an intermediary between these institutions and their core providers, Remedy Consulting plays a pivotal role in deciphering the jargon and technicalities of contracts. This service is invaluable for smaller institutions that might otherwise struggle to understand

Send us a text. (email us if you need a response)

Episode Summary

Key Insights
Navigating the Maze of Payment System Upgrades

Modernizing Financial Systems: A Delicate Balance

The Crucial Link: Consultancies in Payment Innovations

Previous Episode

Patty Presta Talks Payments and Protecting the Vulnerable

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Episode Summary
Welcome to our 25 Episode. Before we get to the official description, this was such an enjoyable episode to record and catch up with an old "Ring" veteran. What started out as a catch-up session, turned into an amazing valuable episode, check below for some resource links.

In this episode of Wrestling Payments, host Joe Casali welcomes Patty Presta, AAP, NCP, the Director of Education at NEACH. Patty shares her unique journey from aspiring to be a nurse to becoming a pivotal figure in the payments industry. Her transition highlights the unexpected paths that lead to rewarding careers in finance.

Patty and Joe discuss critical topics like elder abuse and human trafficking. They emphasize the importance of education and vigilance within financial institutions to prevent exploitation. Patty’s experiences from teaching to working on the front lines against financial crimes offer invaluable insights into the evolving challenges in payments.

The conversation also covers the evolution of payment systems, from direct deposits to modern AI and P2P technologies. Patty's return to NEACH marks a full circle, bringing her expertise back to where her journey in payments began. This episode sheds light on the ongoing fight against financial crime and the importance of continuous learning in the payments industry.

Guest-at-a-Glance
Patty Presta, AAP, NCP, Director of Education NEACH
Over 20 years in payments, passionate about elder and financial abuse education.
LinkedIn

Key Insights
The Unplanned Journey into Payments

Patty’s career path serves as a fascinating example of how life can take unexpected turns. Originally aspiring to be a nurse, Patty’s journey into the payments industry began with a temporary job that unexpectedly evolved into a significant role in education within NEACH. This story highlights the unpredictable nature of career paths and the importance of being open to new opportunities. Patty's transition from a secretary tasked with web development to becoming a pivotal figure in payments training underscores the role of adaptability and learning on the job in achieving professional success.

Addressing Elder Abuse and Human Trafficking in the Financial Sector

Patty brings to light the critical issues of elder abuse and human trafficking, underscoring the financial industry's role in combating these problems. With a deep-seated passion for protecting the vulnerable, she has dedicated a significant part of her career to educating financial institutions on recognizing and preventing financial exploitation. Patty’s work in creating awareness and training materials for detecting signs of abuse and trafficking within financial transactions reveals the power of education and vigilance in making a difference. This insight underscores the importance of the financial sector's proactive engagement in societal issues.

Links
https://polarisproject.org/
https://www.thorn.org/

Next Episode

From Laws to Liability: Mastering Government Payment Processes

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Episode Summary
In this episode of "Wrestling Payments," Joseph Casali dives into the often-misunderstood realm of government benefit payments and their reclamation process. Highlighting a new course he's developed; Joe explains the crucial difference between the Nacha Rules and those dictated by government agencies when a beneficiary passes away. His insights illuminate the complex interactions between the law, the "Green Book" guidelines, and real-world banking practices, emphasizing the practical implications for those managing such funds.

Joe also introduces the concept of constructive knowledge, explaining its vital role in determining financial institution liability. Through compelling examples, he outlines how seemingly simple knowledge can trigger significant financial responsibilities, stressing the importance of being proactive and informed.

The episode wraps up with a call to action, inviting listeners to engage with the course that not only educates but also equips financial professionals with the tools to navigate these intricate scenarios effectively. Joe's approachable discussion aims to enhance understanding and help institutions limit their financial risks associated with government benefit reclamation.

Key Insights

Government Benefit Payments Are Bound by Dual Regulatory FrameworksNavigating the realm of government benefit payments demands understanding the distinct yet overlapping rules set by federal agencies and the Treasury. While agencies may deem a person "eligible" for certain payments, financial institutions must adhere strictly to the regulations, which only recognize allow benefit payments if the recipient was alive on pay day. This discrepancy creates a complex scenario, especially in situations the deaths of beneficiaries is unknown to their financial institution, leading to significant operational challenges for banks and credit unions as they reconcile these obligations and liabilities.
Constructive Knowledge Determines Financial Liability
The concept of constructive knowledge plays a critical role in managing the liability associated for government payments. Financial institutions are expected to act upon any commercially reasonable information indicating a beneficiary's death, which sets their liability from that point forward. This encompasses various scenarios where knowledge can come from direct notifications like letters from nursing homes or even more informal sources like local knowledge of a death. Ignoring such information can significantly increase the institution's financial risk and legal exposure.
Effective Training Reduces Risk in Payment Reclamations
Proper training in handling reclamations is essential for reducing potential liabilities. Financial institutions must implement robust procedures to manage and respond to death notifications and other signals of beneficiary status changes. Through well-structured courses and tools, institutions can ensure their staff is equipped to adhere to both the legal framework and operational best practices, thereby minimizing financial losses and enhancing compliance with regulatory requirements.

31 Code of Federal Regulation Part 210
The GREEN BOOK
NEACHU - "Notified of Death, Now What?"

Wrestling Payments - Wrestling with Change

Transcript

NEACH - Wrestling Payments - Charlie Kelly

Joe Casali: [00:00:00] Welcome to Wrestling Payments. In this episode, I have Charlie Kelly from Remedy Consulting. , consulting, sorry. And, , we are going to talk about, I think, a challenge that lots of, , institutions face occasionally. It's not regularly, but it is, it does come up and, and. We've heard from our members, , the challenges they face during it.

We've heard lots of things like we can't talk to you right