A deep-dive into FedNow - The big push to real-time
Mahesh Raja
Chief Growth Officer | Customer Success and Technology Leader | Sales & Partner Success
The emergence of contemporary technologies is slowly bridging the age-long gaps faced by users and providers of banking services in the financial services industry. Banking regulators are also keen on exploring new technologies due to their benefits of speed, security and scalability. Moreover, ‘real-time’ is becoming a critical component in today's banking world due to the rapid shift in consumer behaviors and expectations.
In the US, FedNow (an instant payment rail of the Fed) will be a significant step toward the future of the payments industry. The launch of FedNow in 2023 requires payment service providers to accelerate the modernization of their payments infrastructure to implement the real-time payment technology requirements of FedNow. We believe regulators' push for new technologies further emphasizes the significance of innovation for incumbents to stay relevant in this rapidly changing operating environment.
| BFSI–Business, Technology & OPS | Digital Transformation | Fintech | Innovation | Startup Enthusiast | MBA | BE-NIT |
3 年UPI developed by NPCI India is one of the good reference case study which FedNow would have looked at. UPI have fueled real time payments in India helping it retain the top spot in the world. Today close to 300 banks are live on UPI and monthly transaction volume is to the tune of 4.5 billion. In terms of value, it’s whopping 110 billion USB. Beyond banks and as 'open' platform it would be interesting to see how tech companies foster innovation using FedNow payment rail.