The FedNow Service can be used by financial institutions to create and offer instant payment solutions that help increase customer satisfaction, generate new revenue streams and gain a competitive edge. Yet, as with any new product or service offering, there are considerations financial institutions should think about as they prepare for the FedNow Service, which is set to launch in 2023.
Treasury operations is one area your financial institution will need to review and potentially adjust to get ready for a 24x7x365 instant payments environment. Our blog post, “FedNow features: Settlement, reporting and liquidity management,” takes a look at some of the FedNow Service’s key features related to operations and back-office processing and provides considerations your financial institution should start thinking about as you prepare for instant payments. Topics covered include:
- Settlement: Explore options for settlement through the FedNow Service, including whether your financial institution will settle payments in its own Federal Reserve Bank master account or designate a correspondent.
- Reporting and reconcilement: Get information on the FedNow cycle date and learn about the various reports and tools that will be available to help your financial institution manage its account balances and reconcile FedNow activity.
- Managing liquidity: Learn about liquidity management transfers, which support liquidity needs by enabling financial institutions to transfer funds to each other.
Read the full blog post for details on these features and considerations.