The Federal Reserve's FedNow Service, a real-time payment and settlement service, presents substantial opportunities as well as a series of challenges for financial institutions. Operating 24/7/365 allows instant access to funds, transforming the transaction experience. This article critically evaluates the potential benefits, risks, and risk mitigation strategies for offering this service.
The Financial Institution Learning Center
A banking blog that answers the industry's top questions and problems.
The Federal Reserve is creating the FedNowSM Service, an instant-payments system planned for release sometime in 2023.