Article: FedNow Pilot Program Participants Announced as RTP Network Grows
In January, the Federal Reserve announced participants in the FedNowSM Pilot Program, a group of financial institutions and service providers including Bankers’ Bank. We’ve just begun, and program participants are providing feedback as details of FedNow are fleshed out, helping to ensure that the service is a forward-looking and innovative new instant payment rail when implemented in 2023. We look forward to serving as an “ecosystem participant,” assisting with bringing FedNow to the marketplace.
As development of FedNow begins, The Clearing House (TCH)’s RTP® Network continues to grow. TCH recently announced that the Network has access to more than 70% of all US checking accounts, mostly through relationships with large and regional banks. Community financial institutions are now beginning to join the Network, with specific cores – Jack Henry, some FIS cores, and Shazam – having solutions available today. Community banks that use these cores have the opportunity to start an implementation project to bring instant payments to their customers, with Bankers’ Bank able to provide liquidity management and settlement services to the joint account at The Fed by serving as a Funding Agent. For more information, reach out to your Correspondent Banker.