
FedNow to Launch in July
The Federal Reserve said in a statement Wednesday that the certification process for institutions will begin in the first week of April.
The Federal Reserve said in a statement Wednesday that the certification process for institutions will begin in the first week of April.
At some point between May and July, the Federal Reserve plans to launch its real-time payments system FedNow, and EasCorp’s Cynthia Nelson wants credit unions to get ready.
The Federal Reserve’s new real-time payments system known as FedNow is expected to go live as early as May 2023, a Fed official said Monday.
As the Federal Reserve moves closer to the expected launch next year of its real-time payments system, a survey released last week by the Federal Reserve Banks found that having faster payment capabilities helped drive satisfaction with financial institutions for more than two-thirds of consumers.
The ability to offer real-time payments has become the most important factor business leaders consider when choosing a banking partner, according to Citizens’ annual payments and treasury survey.
The Federal Reserve has narrowed the expected time frame for the launch of its instant payment platform, FedNow Service, but its debut is still at least two years away.
More than 60 percent of businesses said in a recent Citizens Bank survey that they expect to stop using cash or paper check payments in the future, adopting real-time payments instead.
The Federal Reserve’s new real-time payments system will operate seven days a week, including holidays, but its launch date still hasn’t accelerated.
The parent company of Fidelity Investments had announced the spin-off of Akoya as an independent company that will be jointly owned by Fidelity, The Clearing House Payments Co. and 11 of its member banks.
Development of the Federal Reserve’s planned real-time payments system will be run out of Boston by a top leader at the Boston Fed.
Wisconsin-based correspondent bank Bankers’ Bank has signed on to become a funding agent for The Clearing House’s real-time payment network.
With access to a real-time payments system an important selling point for some business customers, Massachusetts’ community banks find themselves at a fork in the road following the Federal Reserve’s decision to launch its own payments network.
The Federal Reserve announced today it will challenge a banking industry-backed group for real-time payments customers by developing its own system.
Berkshire Bank is making the move to real time payments.
Hudson-based Avidia Bank made a bold move last month, becoming the first community bank in the country to join The Clearing House’s real-time payments network and in the process showing how the relationship between fintechs and banks may soon start to shift.
Avidia Bank, a small $1.6 billion-asset bank based in Hudson, joined The Clearing House’s real-time payments system. It’s a step few, if any, community banks in the country have dared to go down and Avidia executives say it will make it a leader in the payments space.
The Clearing House (TCH) last month released business principles outlining the operation of its real-time payments network, which it launched in November 2017 and is the only one in the country.