FedNow has gone live successfully on July 20, 2023, with around 30 early adopters, settlement agents and certified service providers.
A majority of businesses (83%) and consumers (75%) are already using faster payments, and 66% of businesses and 61% of consumers say they are likely to use faster payments more often in the future, according to the Federal Reserve Release. Do you want to establish a lead and improve your market position?
Aspire Systems with it’s FedNow certified Technology partners help expedite the implementation and go-live quicker with its homegrown accelerators and tools.
FedNow Service is an Instant Payment (IP) standard introduced by Federal Reserve to enable instant money transfers between individuals, businesses, and financial institutions across US banks within seconds 24 hours a day, 7 days a week, and 365 days a year.
Fednow works on the latest messaging standard of ISO20022 and ditches the batch processing clearance system for a real-time transfer. FedNow service acts as intermediatory between sender and receiver banks/credit unions to credit and debit money. It also goes a step further to deliver post receipts on successful transfer.
Incorporating FedNow Instant Payments
To be able to send, receive payments, send RFP (request for payments) and liquidity management transfers instantly there are two ways. Implement FedNow capabilities with the help of an IT service partner. Or partner with a fintech that is FedNow ready.
While the latter requires less cost and time, it will add to the operational costs when IPs become the new normal. The straightforward way that will ensure smooth functioning is to implement FedNow in the banking system.
Embracing new-to-market technology requires a lot of expertise in the banking domain, good partnerships, and a clean record of QA. FedNow recommends a 6-phase Go-live strategy (as above) for the best results.
Aspire Systems is a gem among the sea of IT partners shining with 15+ years of banking domain experience, 50+ banking projects across the globe and 2 vital partners – Finastra & Temenos, both certified service providers of FedNow.
FEDNOW adoption strategy could fit in the following three categories and Aspire can help develop the right strategy, provide consulting solutions and help implement the strategy with the right sized capability.
Our FEDNOW package includes the key components to make your vision a success
- Tactical Solution Stack – Pre-Built MT/MX conversion library for tactical ISO20022 support
- Certified Service Provider Partner – Systems Integration partner for ISO20022 native products (Finastra and Temenos, 2 out of the 17 certified service providers)
- Real Time Integrations – Real Time Fraud Detection is required to support FEDNOW and Aspire can help
- Re-Engineering – Rewriting legacy batch process & integration to new age real time Open API integrations.
- Payments Infrastructure Modernization – Cloud Migration, Payment as a Service Offering
- Greenfield Componentized Development – Non-Payment Hub, best of breed componentized implementation
- Moving Payments out of CORE – With our pathbreaking strategy of moving CORE touchpoint for payments, future proofing Payments has never been easier.
To choose Aspire Systems as your implementation partner for FedNow and leverage technology across every step of the digital transformation journey, contact us today.
- FedNow Service went LIVE. Enable Instant Payments in US now! - August 7, 2023