Temenos, a leading banking software company, has recently announced its successful completion of certification for the FedNow Service, the Federal Reserve’s new instant payment offering. This is a significant milestone for Temenos as it enables banks to support the FedNow service and offer faster payments to their customers.
The FedNow Service is an instant payments network that allows funds to be moved directly and immediately between financial institution accounts in the United States. By participating in this program, banks can provide their customers with the ability to receive value into their accounts in near real time, surpassing the traditional US payment clearing services with faster completion times.
Temenos, through its flexible and cloud-native Payments Hub, is enhancing its capabilities to better serve its US clients with innovative payment solutions. This includes features such as Request to Pay, accelerated payouts, and embedded finance offerings. By adopting these technologies, banks can stay ahead of the curve and create additional differentiation for their customers.
Participating in the FedNow Service is crucial for banks that want to remain at the forefront of technology. Temenos’ core banking and payments cloud-native technology empowers banks to innovate more quickly, providing customers with faster payment methods that improve cashflows and increase satisfaction. By embracing these advancements, banks can not only enhance their own services but also enhance the experience for their customers.
Ken Montgomery, the first vice president of the Federal Reserve Bank of Boston and the program executive of the FedNow Service, expressed enthusiasm about the progress being made by early adopters of all sizes. Completing the certification process is an important milestone for organizations participating in the program, as it validates their ability to deliver instant payment services.
Philip Barnett, President Americas at Temenos, highlighted the scalability and localization of the Temenos platform, which enables banks to modernize their payments and leverage new market initiatives such as instant payments. Temenos has a wealth of experience in supporting global financial institutions in their payment transformation journey, encompassing various payment schemes, clearing infrastructures, and evolving regulations. Additionally, Temenos can address the limitations of banks’ existing core technology, enabling them to progressively modernize their capabilities and unlock the benefits of instant payment services like FedNow.
Overall, Temenos’ certification for the FedNow Service is a significant achievement that positions the company as a leader in providing innovative payment solutions for banks. By leveraging its flexible and cloud-native technology, Temenos empowers banks to adapt to market demands and deliver faster and more efficient payment services to their customers. With its ongoing investment and commitment to the US market, Temenos is well-equipped to drive growth and capitalize on the opportunities presented by instant payments.
