Preparing for Instant Payments and the FedNow Service
You likely haven’t had a customer come into your bank asking if they can make payments through the FedNow Service, but demand for instant payments exists and being live on FedNow Service is an opportunity to have those funds held at your bank.
By knowing the answers to the following questions, you can be prepared for FedNow Service and instant payments.
- What is your institution’s strategy for offering FedNow Service/instant payments?
- Do you have customers utilizing payment services like PayPal, Venmo or Zelle that might be pulling deposits from your institution?
- What is your market for payments?
- Who is going to use FedNow Service/instant payments? Do you anticipate stronger commercial or retail customer demand?
- Have you spoken to your core provider and asked about costs and a demo of their FedNow Service?
- Are there savings to your institution by being an early adopter of FedNow Service?
- What risks do you anticipate for your institution by implementing FedNow Service/instant payments?
- What controls can you implement to manage the risk of being live on FedNow Service/instant payments?
- Have you attended one of BBOK’s virtual roundtables on the FedNow Service?
- Have you spoken to BBOK about FedNow Service/instant payments?
Bankers’ Bank of Kansas is here to help you understand the advantages and risks of implementing the FedNow Service. We are ready to assist you with the Fed’s onboarding process when you decide to implement FedNow Service for your institution.
Need a refresher on FedNow Service and instant payments? Visit our instant payment resources page!