Blogs

2023 FedNowSM Service Pricing Now Available

By Joe Casali AAP, APRP posted 03-28-2023
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The Federal Reserve recently announced pricing for the FedNow Service , which will launch mid-year 2023. To support widespread adoption of instant payments, the Federal Reserve is offering key pricing discounts for new FedNow Service customers in 2023. These include waiving the $25 monthly service fee ($300 annual value) and discounting the $0.045 customer credit transfer fee on the first 2,500 customer credit transfers per month (up to $1,350 annual value). Other FedNow Service fees for 2023 include: • $1.00 liquidity management transfer fee • $0.01 request for payment fee • $0.045 return customer credit transfer fee More ...
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August 2022 Innovating Payments Executive Summary— Businesses Interested in Using Faster Payments for Emerging Use Cases

By Joe Casali AAP, APRP posted 08-16-2022
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Welcome to the August 2022 Innovating Payments Executive Summary. The Federal Reserve released the results of its second annual corporate study, revealing that U.S. businesses are increasingly interested in using faster payments for day-to-day business operations. Also in the news, Bernadette Ksepka, Vice President and Deputy Head of Product Management for the FedNow SM Service Program, is calling 2023 a transformative year for the industry. She urges financial institutions to make the necessary financial technology investments to enable instant payments through the FedNow Service. On Tuesday, July 26, Nacha released its second Operations ...
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May 2022 Innovating Payments Executive Summary — Tokenization to Boost Financial Security

By Joe Casali AAP, APRP posted 05-31-2022
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Welcome to the May 2022 issues of NEACH’s Innovating Payments Executive Summary. In this month’s issue, the Federal Reserve announced it launched the initial testing phase of its FedNow SM Pilot Program and began onboarding pilot participants onto the FedNow Service, with a few organizations having now successfully delivered test messages over the pilot platform. In other news, Nacha President and CEO Jane Larimer announced that Nacha and the Faster Payments Council are partnering to provide the Faster Payments Professionals (FPP) certificate program and Payment Associations, like NEACH, will be delivering relevant training. Also in this month’s issue, The ...
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A Look at Blockchain in New England State Government

By Joe Casali AAP, APRP posted 05-24-2022
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As payments professionals, when we hear the word “blockchain,” our minds instinctively go to digital currency, cryptocurrency, or even Bitcoin. While it is true that blockchain serves as the underlying technology supporting those channels, its use cases extend far beyond payments. Blockchain, in its simplest form, is a series of blocks that store data. This means that the technology creates advantages in many different scenarios where record-keeping or data management come into play. Industries as diverse as healthcare, supply chain management, information technology, and government have been exploring blockchain’s merits to increase efficiency and strengthen ...
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The Great Resignation? For Financial Institutions?

By Joe Casali AAP, APRP posted 04-20-2022
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The COVID-19 pandemic might have been the catalyst for The Great Resignation , but the shifts it has brought are likely here to stay. Although coronavirus cases continue to decline in the United States and many mask mandates are disappearing, the truth is that it’s a rare business that’s been unchanged by the events of past two years. Financial institutions, of course, fall into the “changed” category. Back in 2020, the pandemic necessitated immediate changes for the industry, sending employees home to work and closing branches. But as the banking environment evolves, the workforce must as well. The Great Resignation, as we’ve shared before , incorporates ...
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The Payments Journey: A conversation with FinTechs

By Joe Casali AAP, APRP posted 03-31-2022
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As FinTechs grow, they must evolve along with the payments marketplace. The timeframe of a new versus an established FinTech may seem relatively short, but in terms of technological time, six months to a year can seem like a lot more. Because there’s no time to waste, especially given how the COVID-19 pandemic has accelerated the already existing trends in cashless payments. For example, a recent Forbes article claims that in 2021, 82 percent of Americans used some form of digital payment. And venture funds have been taking notice: As Tech Crunch reported last year, more than 20 percent of venture dollars went toward FinTech startups. For FIs, this ...
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March 2022 Innovating Payments Executive Summary— Cryptocurrency and Central Bank Digital Currency Making Headlines

By Joe Casali AAP, APRP posted 03-15-2022
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Cryptocurrency and talk of a central bank digital currency (CBDC) continue to make headlines. On Wednesday, March 9, US President Joe Biden signed an executive order directing agencies across the government to study cryptocurrencies and a central bank digital currency (CBDC). Meanwhile, in a speech at the US Monetary Policy Forum in New York on February 18, Governor Lael Brainard of the Federal Reserve System urged her listeners to prepare for the payments system of the future, saying, “The Federal Reserve has been thinking critically about whether there is a role for a potential US central bank digital currency (CBDC)." Also making headlines this month: The ...
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Unlocking the Power and Potential of Bitcoin

By Joe Casali AAP, APRP posted 01-27-2022
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When studying a new language, you can pick up just enough to visit another country and order a coffee. Or you can spend time and energy to be fluent. According to Patrick Sells, the Chief Innovation Officer at NYDIG, who presented at the NEACH 2021 Future of Payments Conference , understanding Bitcoin is a lot like that. Whether your familiarity with cryptocurrency is fluid or rusty, it’s always helpful to learn more. During his session, Sells provided a detailed description of how Bitcoin arose and evolved and shared its use cases in banking and payments. What is currency, anyway? Sells began his presentation with a fundamental question: What ...
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Case Study: BankNewport’s RTP Network Implementation Experience

By Joe Casali AAP, APRP posted 12-02-2021
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For more detailed insights into BankNewport’s RTP experience, join us at the virtual Future of Payments Symposium , December 8–9, where both TCH and BankNewport will share a first-hand account of their experience. When John Sullivan , Executive Vice President and Chief Information Officer for the $2 billion-asset BankNewport, initially heard about The Clearing House’s (TCH) RTP ® network, a new real-time payments rail, he recognized faster payments could be a market differentiator for his bank. So, when his core provider, COCC, approached him about being an RTP pilot bank, he jumped at the opportunity. “We viewed joining the RTP network ...
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Bringing AI into the Fold: How FIs Can Get Online with Posh Technologies

By Joe Casali AAP, APRP posted 12-02-2021
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Leveraging artificial intelligence (AI) for “front office” solutions, including conversational banking, can save the financial services industry $199 billion, according to an analysis from Business Insider . No matter how you extrapolate that data, it equates to savings for financial institutions as well. So, financial institutions are boarding the AI bandwagon. Most FIs are highly aware of the potential benefits presented by AI and machine learning, but implementations have been skewed by size: 75% of respondents at banks with over $100 billion in assets say they're currently implementing AI strategies, compared with only 46% at smaller institutions. ...
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The Great Resignation? Or Great Realignment?

By Joe Casali AAP, APRP posted 11-15-2021
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Lately, it's everywhere in the news: Everyone is quitting. Employers can't fill jobs. Businesses are reducing their hours for lack of staff. And why are employees quitting? Is it a search for better opportunities? Embarking on a new career or industry? Needing more workplace flexibility? This is an effect of the COVID-19 pandemic that many might not have seen coming. But in hindsight, it may make some sense: Months of closed offices and lockdowns have led many to think about their lives. The headlines tell the story: The Wall Street Journal reports that U.S. workers left their jobs nearly 20 million times between April and August this year. That's ...
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August 2021 Innovating Payments Executive Summary— Real-Time Payments and Financial Inclusion

By Joe Casali AAP, APRP posted 08-17-2021
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Change continues at an accelerated pace across the industry as financial institutions and their customers and members work to adapt to the “new normal.” In this month’s issue, we explore how real-time payments are facilitating financial inclusion, a movement to ensure individuals and businesses can access affordable and effective financial services [i] , among gig workers, the underbanked, and the unbanked. Also in the news, ICBA Bancard announced it is partnering with Finzly, a FinTech provider that offers payments solutions to facilitate real-time payments via its payment hub. Payveris, a FinTech money-movement provider, has also thrown its hat into the ...
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July 2021 Innovating Payments Executive Summary: Payments Digitization — The Future is Now

By Joe Casali AAP, APRP posted 07-15-2021
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Payments digitization continues to accelerate as COVID restrictions lift with financial institutions and their customers working to redefine their relationship in the aftermath. In this month’s issue, we continue to examine the impact of the pandemic and how financial institutions — and the industry — are evolving to define the “new normal.” This month, The U.S. Faster Payments Council (FPC), in partnership with Glenbrook Partners, released a new research report, “Why Interoperability is Important to Faster Payments.” Zelle and Venmo are also making headlines, while The Clearing House's Real-Time Payments (RTP) ® network continues to expand. The FedNow SM ...
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June 2021 Executive Summary: The Time to Prepare for Real-Time Payments is Now

By Joe Casali AAP, APRP posted 06-17-2021
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As the world eases into a “new normal,” financial institutions are ramping up and responding to the changes wrought by COVID-19. A burst of momentum and new developments in faster and real-time payments paint a clear picture of the future and a clarion call to action for financial institutions: The time to act is now. According to a PYMNTS' survey, almost 75 percent of consumers plan to maintain at least some of their digital behaviors post-pandemic. And that’s just the tip of the iceberg. These digital preferences carry over to consumers’ relationships with their financial institutions, and financial institutions must prepare themselves and their customers for ...
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May 2021 Executive Summary — Pandemic Accelerates Real - Time Payments Expansion

By Joe Casali AAP, APRP posted 05-11-2021
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Although COVID-19 restrictions are beginning to ease in some parts of the country, aftershocks are still rippling out, affecting every segment of the industry, including real-time payments. The fact that a significant number of consumers said they would switch from their current financial institutions to one that provides real-time payments is revealing. In addition, RTP® continues to gain traction, and FedNow (SM) released message specifications for the initial launch of its FedNow Service based on the standard set by the International Organization for Standardization, or ISO. Read on for more of this month’s latest developments. May 2021 At-a-Glance ...
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April 2021 Executive Summary Outline: The Digital Shift Accelerates

By Joe Casali AAP, APRP posted 04-08-2021
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As we turn the corner into spring, the digital shift continues to accelerate as the industry adapts to shifting consumer perspectives and expectations in the wake of COVID-19. In response, financial institutions are developing new solutions, forging strategic partnerships with FinTechs, and identifying and solving new opportunities and challenges. In this month’s issue, we explore the new digital consumer and how the pandemic has shaped consumers’ shopping behaviors, how application programming interfaces (APIs) are taking online banking to the next level, Finastra’s participation in the Federal Reserve’s FedNow (SW) Service Pilot Program, and more. ...
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5 FinTechs to Watch

By Mark Dixon, AAP, APRP, NCP posted 03-04-2021
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COVID-19 has brought unprecedented opportunities and challenges to financial institutions of all sizes. From the processing of more than $72.7 billion in Paycheck Protection Program (PPP) loans to the acceleration of digitalization and the shifting role of operations, financial institutions responded heroically to the titanic cultural shifts and the increase in customers’ demands over the past year. In the process, they redefined themselves, and the industry, for years to come. As year two of the pandemic brings new opportunities and challenges, financial institutions are taking steps to deepen their relationships with existing customers and members and extend ...
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January 2021 Executive Summary — COVID-19 Accelerates Payments Modernization

By Mark Dixon, AAP, APRP, NCP posted 01-11-2021
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As we turn the page on another year, there are several trends to keep an eye on. For example, COVID’s continuing impact on payments, and more specifically, the acceleration of payments modernization, continues to drive change in the industry. Our recent 2021 predictions post dives into some of the trends to watch in the coming year. To keep an eye on these developments and support member financial institutions in 2021, NEACH has identified six key topics, which fall under the broader category of payments modernization, to focus its efforts on in 2021: COVID’s impact, emerging payments, the new role of operations, faster payments strategy, RTP®, and FedNow ...
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Going Live with RTP: An FI and Core Provider Share Their Experiences

By Mark Dixon, AAP, APRP, NCP posted 11-23-2020
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The Clearing House’s RTP ® network is gaining traction, with 70 percent of demand deposit accounts (DDA) now having access to real-time capabilities via banking technology providers connected to the network. We recently talked with both a financial institution and core provider that have completed the implementation process to get a glimpse into how it works. A Bank’s Perspective We first sat down with Christopher E. Richards, Executive Vice President and Chief Banking Services Officer for Cape Cod 5 to learn what led to the bank’s decision to connect to RTP services through its core provider, Jack Henry. Richards framed the bank’s decision ...
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Fraud in the Age of COVID-19 - Includes Q&A with Steven Silberstein, CEO, FS-ISAC

By Mark Dixon, AAP, APRP, NCP posted 11-12-2020
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Financial institutions have weathered the COVID-19 crisis well, with many of them further digitalizing their products and services in record time and processing more than 81 million Electronic Stimulus Payments (EIP) and more than 4 million Paycheck Protection Program (PPP) loans. However, an area of continued concern is the rise in the overall level of fraud that appears to be resulting from the environmental conditions created by the pandemic. With that in mind, I attended a recent FS-ISAC training exercise with a focus on Business Email Compromise (BEC). This exercise was a great experience, providing me insight into the inner working of a BEC. The nuts ...
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