To support payments advances and enable efficient use of Federal Reserve Financial Services (FRFS) products and services, the Federal Reserve is preparing to offer new tools and resources to its customers’ Information Technology (IT) developers and business stakeholders.
Starting next year, the Federal Reserve will deliver services to financial institutions via Application Programming Interfaces (APIs). APIs are a set of protocols for connecting software systems programmatically, enabling system-to-system interoperability and support for business process automation. Because APIs are easy to adapt and cost-effective to use, they also can open business opportunities to financial institutions of all sizes and with varying degrees of technology resources.
“Our APIs will give financial institution customers automated access to information services, as well as greater flexibility and efficiency in managing daily tasks,” said Shonda Clay, FRFS executive vice president and chief of product and relationship management. “We’re excited to expand use of APIs to our broader developer community.”
APIs are being developed for several FRFS payment services, including FedACH® Services, the FedCash® E-Manifest Service, Account Balance and Service Status. They can be used for informational purposes, such as reporting, transaction details, status and daily activity. Currently, six Federal Reserve APIs are being pilot tested by a small group of financial institutions. Initial customer feedback has been positive, noting our APIs’ ease of implementation and use.
In the coming months, the Federal Reserve will share more information on timing, availability and pricing of the initial API offerings, which will be released in phases.
FedNow® Service Resources
The Federal Reserve also plans to introduce a tech-centric developer resource for FedNow Service customers and their service providers. This new online resource will allow participants to access code and message samples to assist with service implementation, as well as documentation, such as Operating Procedures and technical specifications (Off-site).
“We’re committed to enhancing the FedNow Service for financial institutions and their service providers as they design and deliver instant payments solutions for end-user customers,” said Nick Stanescu, senior vice president and FedNow business executive. “Our tools and support will help the industry foster payments innovation using the service.”