National Settlement Depository (NSD), Russia’s central securities depository, has connected to the Faster Payments System (FPS) of the Bank of Russia to provide its clients with an option to conduct instant and safe C2B payments, in particular, to credit retail investors’ funds in broker accounts opened with NSD.
The FPS allows individuals to conduct payments to legal entities at a minimum cost. Brokerage firms, asset management companies, and electronic platforms with accounts opened with NSD now can quickly manage retail investors’ assets when performing transactions on the exchange and OTC markets, manage liquidity, and expand the service range for their clients.
The service was implemented based on the FPS Adapter solution provided by eKassir, a developer of software for banks and financial institutions. NFK-Savings, an investment company, has become the first client connected to the FPS via NSD.
“Accelerating settlements will increase the turnover rate of private investors’ funds and will contribute to the competitive development of the services,” said Svetlana Gryanchenko, Director of the Operations Department, NSD. “Being the central element of financial infrastructure, we strive to make interactions between market participants more convenient, safe, and fast.”
“For NFK-Savings the connection to the Faster Payments Service has become the most important development of the year in the client service sphere. We are honored to be the first company to sign up for the new service provided by NSD. Currently, when the option to perform any transaction remotely is crucial, such a convenient, transparent and affordable service allowing to replenish investment accounts through the FPS is of great value. We expect that the new opportunities provided by NSD will allow us to achieve a new level of convenience for clients managing their accounts and to attract more investors to the market,” added Evgeniy Naumov, Director, NFK-Savings.
“We welcome NSD’s connection to the Faster Payments System, and we see that there is a great deal of interest in the implementation of new payment solutions by NAUFOR members. In 2017, NAUFOR initiated the development of a newest scheme of payments via the FPS by the FinTech Association. Our goal was to increase conversion when conducting financial market participants’ online transactions and to cut costs of retail clients’ transfers manyfold. Once NSD is connected to the system, more financial market participants have the opportunity to implement a new payment scenario for their clients,” pointed out Alexey Timofeyev, President of National Association of Securities Market Participants (NAUFOR).