Federal Reserve Continues Progress on FedNow Development – Join the Community to Stay Informed
As part of our continuing efforts to help shepherd community bank payments modernization, last month Bankers’ Bank submitted its application to participate in the FedNow Pilot. Expressions of interest were also provided by several customer banks, demonstrating the broad interest and commitment of community banking to The Fed’s efforts. Working together, we will show the strength of the correspondent-respondent relationship in delivering instant payments through FedNow.
The FedNow Instant Payments service will help modernize the US payments infrastructure with use cases and benefits to all sectors of the economy. The service will be a “Credit- Push” solution, which will provide high levels of security and resiliency. At its initial launch it will include fraud prevention tools, ISO 20022 message standards, seven-day accounting (optional for participants), liquidity management tools and more. Bankers’ Bank is staying closely involved as FedNow develops, engaging with the Federal Reserve to ensure that as the service becomes a reality community banks have the support they need to successfully launch this new payment solution.