Embracing FedNow: A guide for financial institutions
The FedNow Service, which went live in July 2023, is the new instant payments infrastructure developed by the Federal Reserve to enable real-time payments between all financial institutions on behalf of their customers or members. However, some banks and credit unions are waiting to adopt FedNow until kinks in the system are worked out. Ultimately, the faster payment method could easily replace ACH, check, and card payments.
The payment rail has some built-in anti-fraud capabilities, and fraud and AML/CFT staff can take several steps during their institution’s FedNow implementation to combat and reduce fraud. Read this whitepaper to learn:
- How and at what pace your institution should implement FedNow
- Anti money laundering and fraud implications for FedNow and parameters to understand before adopting at your institution.
- Best practices for adopting FedNow, including employee training, customer education, and infrastructure reviews.