Fed release new details on FedNow Service
The Federal Reserve yesterday provided an update on its FedNow Service, indicating that the program will be launched in phases. NAFCU remains supportive of the Fed's efforts to create a real-time gross settlement service and has urged the Fed to expedite its creation.
The current target release date of 2023 or 2024 remains; however, the Fed intends to announce a more specific time frame for the launch as well as dates for forthcoming pilot programs.
NAFCU has previously shared with the Fed ways in which credit unions and their members would benefit from affordable faster payments capabilities as it encouraged an accelerated launch.
The announcement includes a number of details about the service, many of which NAFCU has advocated for, including:
- fees will be based on transaction costs associated with mature volume estimates;
- the FedLine network will serve as the channel through which participating financial institutions access the service; and
- the request-for-payment message type will be available as part of the launch.
Additionally, the FedNow Service will launch with a liquidity management tool to facilitate funds transfers in support of real-time payments. The service will also include a set of fraud prevention tools at launch and in future phases.
NAFCU has also worked with member credit unions to understand what they would like out of the system, and NAFCU’s Cybersecurity and Payments Committee has engaged in early discussions with Fed representatives to discuss features and strategies that would promote adoption
During a speech Thursday, Fed Governor Lael Brainard indicated that speed is essential in launching the program, noting the role of the payments system in facilitating the distribution of economic impact payments earlier this year.
While the FedNow Service will not include a directory service or other approach to support alias-based payments at launch, the Federal Reserve will seek to provide this feature in a future release.
NAFCU continues to lead on this issue, having served on both the Fed's Faster Payments and Secure Payments Task Forces. Additionally, NAFCU President and CEO Dan Berger previously met with Brainard to encourage the Fed to play an operational role in a future, faster payments system.
Strategy, Marketing, Growth & Retention, Customer Engagement
CUNA Mutual Group
Add to Calendar 2020-09-21 14:00:00 2020-09-21 14:00:00 Member Business Lending in Relation to COVID Impacting Loans Millions of lives and businesses have been changed by the COVID-19 pandemic. The lasting impacts of COVID-19 – both physically and economically – are still unknown, and the world continues to find ways to adjust in order to meet the difficulties caused by the disease head on. Credit unions have had to respond swiftly and thoughtfully to match the evolving needs of their communities and members, and other affected industries. Eviction moratoriums, payment deferrals, loan modifications and the birth of the Paycheck Protection Program and the terms of loan forgiveness, including the efficacy of these policies to date, are a few of the topics examined in this webinar. Key Takeaways Understand how COVID-19 has dramatically changed the world of commercial lending Examine how financial institutions have responded to the problems created or exacerbated by COVID-19 Review the key aspects of the Paycheck Protection Program under the CARES Act, and other available relief Register NowRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until September 21, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Chief Executive Officers (CEOs) Chief Lending Officers (CLOs) Lending, risk, marketing and business development staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand how COVID-19 has dramatically changed the world of commercial lending. Examine how financial institutions have responded to the problems created or exacerbated by COVID-19. Review the key aspects of the Paycheck Protection Program under the CARES Act, and other available relief. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
CFPB , Advertising Home-Secured Lending
Get daily updates.
Subscribe to NAFCU today.