After years of ICBA-led advocacy on behalf of a faster payments system that ensures access and choice for community banks, the Federal Reserve said it will develop a service to support real-time payments.
Fed Governor Lael Brainard announced the new FedNow Service
—the Fed’s first new set of payments rails in 40 years since introduction of the ACH rails—during a highly anticipated speech at the Kansas City Fed. The Fed is opening a 90-day comment period on the plan and said it expects the service to be available in 2023 or 2024.
ICBA applauded the Fed
on the announcement, which will ensure universal access to real-time payments, avoid a megabank monopoly, and encourage innovation that will benefit consumers nationwide. ICBA also issued a timeline showing its years-long advocacy on the issue.
"ICBA and the nation's community banks strongly support the Fed's decision to develop a real-time settlement system," ICBA President and CEO Rebeca Romero Rainey said. "Now, the hard work begins as the Federal Reserve must move quickly to establish the service."
View ICBA Timeline