Granting access to real-time gross settlement systems in the FinTech era

In light of the fast-growing role of non-bank financial institutions in national payment systems worldwide, this paper explores the experience and practice of central banks with regard to the granting of access to real-time gross settlement (RTGS) systems and considers the related policy issues. Specifically, in their capacity as settlement agencies and operators of their national RTGS systems, many central banks are today considering the merits of extending RTGS access to retail payment service providers (PSPs) other than commercial banks, to include emerging companies that apply technology to the provision of payment or payment-related services. This paper frames the issue within the broader context of whether, and to what extent, access to RTGS systems should be extended to non-bank PSPs. Decades of experience with RTGS systems across countries in different stages of financial sector development, in an increasingly globalised marketplace, have revealed a number of practical problems for central banks, the direct users of RTGS systems, and other beneficiaries of their services. This paper draws on such experience and practice. The paper ends by submitting a few considerations on how RTGS access issues relate to central bank digital currencies.