On October 3, 2023, the Federal Reserve announced that the FedNow Service has experienced strong growth following its launch in July, with 108 institutions now sending and receiving on the network. According to the Federal Reserve’s press release, 21 financial institutions are providing liquidity and settlement services, and 20 service providers are supporting payment processing in the instant payments infrastructure.

Launched on July 20, 2023, the FedNow Service is an interbank payment system where businesses and individuals can send and receive instant payments at any time of day through participating financial institutions. In light of the increasing participation of financial institutions, the Federal Reserve said that it will continue to prioritize enhancements to the service and plans to introduce new features and functionality in the coming months. Updates will include select risk management and operational enhancements of the service geared toward providing additional fraud prevention tools and straightforward access to important account and transaction information.

Read the Federal Reserve’s press release here.

Adam Witmer

Adam Witmer is a speaker, author, and founder of the Compliance Cohort. Adam has taught hundreds of seminars and training sessions to thousands of bankers throughout the United States and teaches on all areas of regulatory compliance. Adam has written five e-books that he never published, hit a grizzly bear while driving in a National Park, and is an award winning photographer and musician (though he no longer takes photos nor plays any instruments). In his spare time, Adam can be found kayaking on the lake, doing taekwondo with his kids, working on his (project) house, or spending time with his family.

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