We recently participated in the FedNow early adopter workshop. The goal of the two-day event was to accelerate connected financial institutions’ ability to support FedNow services. As one of the 120+ organizations participating in the Federal Reserve’s Pilot Program, we attended the event alongside our FedNow pilot partner, Choice Bank, to learn more about how PortX can help enable simplified connectivity to the Fed’s new instant payments network for our customers.
What is FedNow?
The Federal Reserve Banks initiated FedNow to implement a national real-time payments system inclusive of all financial institutions in the country. The network will enable instant movement and availability of funds, giving organizations and individuals timely access to their money. Financial institutions will gain access to FedNow via FedLine, the Fed’s current technology for reliable clearing of payments and data exchange. During the event, the Fed announced that FedNow would launch in May-July 2023.
Why are we excited about it?
Some highlights from the event included:
- Walking through potential use cases for financial institutions
- The first live demo of a FedNow transaction in a pre-prod environment
- Education for banks: the benefits to banks and why they would want to offer FedNow capabilities to customers; the challenges of a 24/7/365 operating model; the reality of real-time fraud detection conducted in seconds vs hours.
FedNow is a momentous initiative for modernizing payments in the US. Countries around the world have been building and implementing real-time payment systems for years, some of which we have been a part of in our work with ModusBox – a key contributor to Mojaloop development. And we thrive at the edge of innovation. When FedNow launches, it will change the financial landscape in the US and rewrite the rules for 24/7 instant money movement.
We are especially excited to be a part of the program because the Federal Reserve Bank has taken a modern, agile approach to its rollout process. Throughout our involvement, the FedNow team has created transparency, engaged the development community, and built support for the program among the organizations involved.
We are looking forward to partnering with Choice Bank on the FedNow solution for the PortX platform that will make connectivity to this new payment system easy and intuitive. We will share more information as details become available. In the meantime, if you would like to learn more about PortX and how it helps community financial institutions connect to the future of payments and fintech partnerships, visit our platform overview page or start a conversation with a member of our team now.