Central 1 Credit Union (Central 1) has completed a significant milestone in preparing for and delivering on Payments Canada’s Payments Modernization Program by becoming the first and only institution in the credit union system to secure a Lynx settlement account from the Bank of Canada.
Payments Canada is leading Canada’s Modernization journey, which will ultimately lead to a fast, efficient, flexible and secure payment system that will strengthen Canada’s competitive position. The next major project in Payments Modernization will be the replacement of the Large Value Transfer System (LVTS), an electronic funds transfer system operated by Payments Canada that allows financial institutions and their customers to send large payments, securely in real time, with certainty that the payments will settle. Its successor, in 2021, will be Lynx: a real-time gross settlement system, including an enhanced risk model that complies with Canadian and international risk standards and will be enabled with the global ISO 20022 messaging standard.
A Bank of Canada Lynx settlement account is a requirement for the Payments Canada Lynx application process. Central 1 has been a long-standing participant in Payments Canada’s current LVTS. To qualify as a participant in Lynx, all existing LVTS participants were required to apply for a new Lynx-specific settlement account at the Bank of Canada, under a new set of rules.
The Bank of Canada approval means that Central 1 can continue the provision of essential wires, clearing and settlement services for our credit union clients and other financial institutions when Payments Canada launches Lynx.
Central 1 President and CEO Mark Blucher commented: “Central 1 values its position as a trusted partner to credit unions; helping them serve their customers and standing behind them as they move payments across the country, outside Canada or around the corner. We facilitate the final leg of the payments journey: interfacing directly with the Central Bank to move funds and complete payments. It gives us great pride to deliver this essential aspect of payments to credit unions across the country, and that we have been approved to continue doing so.”
Central 1 is making strong progress towards delivering Lynx and this latest achievement ensures we are staying on course to delivering a modernized payments system that meets the needs of the credit union system and their members and customers.
About Central 1
Central 1 is a preferred partner for financial, digital banking and payment products and services – fuelling the success of businesses across Canada. We leverage our scale, strength and expertise to power progress for more than 250 credit unions and other financial institutions, enhancing the financial well-being of more than 5 million customers from coast to coast. For more information, visit central1.com.
Meadhbh Monahan (pronounced ‘Maeve’)
C 236 885 3363