CUNA supports ongoing development of FedNow 24x7x365 service

Development of the FedNow real-time payments network is necessary, CUNA wrote to the Federal Reserve Wednesday. The Fed announced details of the 24x7x365 interbank settlement service last month.

“CUNA supports the Board’s ongoing development of FedNow, and credit unions look forward to working with Board staff as the network is developed,” the letter reads. “We encourage the Board to use all the resources at its disposal to speed up development of FedNow so that new products and services can be brought to the market.”

The first release of the FedNow Service will provide core clearing and settlement features that will support market needs and help financial institutions manage the transition to a 24x7x365 service. Additional features and service enhancements will be introduced over time.

The target launch date for the service is 2023 or 2024, and CUNA in its letter strongly encourages working toward “the earliest end of that range, while recognizing the complexity of the endeavor.

 

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