Bank Automation News
As we approach the 2023 launch of the FedNow service, banks across the U.S. must consider whether they are ready for real-time payments — both technologically and operationally. The 24/7/365 nature of instant payments will likely present new challenges for community banks, but proper preparation will go a long way toward supporting more seamless transition.
For some community financial institutions, adjustments to their current treasury operations and workflows will be necessary. More specifically, many banks will need to review which back-office processes currently require manual intervention and find ways to automate them to facilitate real-time payments in 2023 and beyond.
There are a few practical steps bank leaders should take now to prepare and get ahead of the most common hurdles.
Beware of these back-end challenges
To get ahead of any roadblocks to real-time payments, financial institution leaders should start proactive discussions with appropriate internal stakeholders — as well as any third-party vendors — to ensure that all systems, especially on the back end, are prepared to process payments and the data associated with those transactions in a real-time environment.
Many banks will need to adjust their current treasury operations and IT infrastructure to support this.