Bankers’ Bank of Kansas Selected for FedNow℠ Pilot Program
The Federal Reserve FedNow℠ service will increase the instant payment service options for banks and their customers when the Fed launches the new platform in 2023. Implementing the service in an efficient and safe manner remains a high priority for the Federal Reserve and BBOK is actively working alongside them to ensure the product meets the needs of our customers.
BBOK is one of 110 selected participants of the FedNow Service pilot program, which includes a diverse group of financial institutions and service providers. Together, we are helping the Fed shape the product’s features and functionality to meet the needs of community banks. Further, we will be testing the program, giving the central bank feedback on the overall user experience, and advising the Fed on how to best prepare institutions for adoption.
The FedNow service will be introduced in phases.
Phase 1: Allows for account-to-account transfers and bill pay.
Phase 2 and beyond: Enable instant payment for additional types of uses, ideally including cross-border payments, and extra features related to error resolution and case management.
While banks now have access to other instant payment services, the FedNow Service will be provided through the Federal Reserve’s FedLine® network, which serves more than 10,000 financial institutions directly or through their agents. Businesses and individuals will be able to send and receive instant payments conveniently, and recipients will have full access to funds within seconds, giving them greater flexibility to manage their money and make time-sensitive payments.
We will update you as more information becomes available.