Federal Reserve convenes a FedNow® Reconcilement Working Group
The Federal Reserve is collaborating payments industry leaders from large, medium and small financial institutions and from third-party processors who handle reconcilement on behalf of their customers to participate in a collaborative work effort to inform the FedNow Service. This Reconcilement Working Group, which will be formed and led by the Federal Reserve, will support planning and design work to facilitate FedNow Service reconcilement activity for financial institutions and their customers.
Submissions for joining this working group are currently closed and applicants will be notified of their status in the coming weeks. The working group will begin meeting in September.
Understanding reconcilement needs and potential pain points for financial institutions is key for the development of the FedNow Service. The Federal Reserve seeks to collaborate with the industry to identify desired data, tools and service features to help ensure that financial institutions can reconcile with the Federal Reserve and their customers for FedNow transactions. In its pursuit of this objective, a short-term working group is being established to:
- Identify needs for FedNow-specific reconcilement and integration into master account reconciliation procedures for the initial launch of the FedNow Service so that financial institutions can reconcile accounts with the Federal Reserve.
- Explore reconcilement-related needs for tools, data or services, such as enhanced reporting services, for the initial launch of the FedNow Service so that financial institutions can reconcile accounts with their customers.
- Identify FedNow application user interface requirements to support reconcilement at the launch of the FedNow Service.
- Assist in the identification of possible reconcilement features and their prioritization in an effort to support the FedNow Service.
The Reconcilement Working Group will be composed of industry participants selected by the Federal Reserve who have in-depth expertise that includes, but is not limited to:
- Operational responsibilities with reconciling activity related to Federal Reserve Services.
- Operational responsibilities with reconciling customer accounts.
- Technology responsibilities with automation of reconcilement functions for Federal Reserve activity and customer accounts.
Need more information?
As always, the Federal Reserve will continue to be transparent, collaborative and inclusive as we work to improve the U.S. payment system. The FedNow Community will be informed about the working group’s progress and, as appropriate, be offered the opportunity to provide input on issues under consideration by the working group.
If you have any questions, please reach out to us at SYSFedNowCommunity@chi.frb.org.