Independent Banker - January 2024 - 7

FROM THE TOP
Why instant payments
need to be a 2024 priority
s we kick off the new year, our
budgets have been set and our
plans developed. But you know what
they say about the best laid plans:
They change. Fortunately, community
banks thrive on their ability to respond
to market drivers, and in 2024, those
demands point to instant payments.
We've been monitoring
A
developments with FedNow since it
was announced. When it launched last
July, there were only 35 participating
banks, but in a few short months,
more than 100 institutions were on
board. And demand for the solution
is rising: An October study from the
Association for Financial Professionals
revealed that over 75% of businesses
plan to use real-time payments in the
next five years.
Clearly, our customers expect
instant payments, and this growing
demand is the reason FedNow needs
to be at the forefront of our project
lists. In fact, we have already shifted
plans at my bank, moving FedNow up
as a priority. It's time to start dipping
a toe in the water and be open to
learning to get comfortable with the
product, so that when we're ready to
send, we have a good understanding of
how it's going to work.
Even so, I had concerns about
adding FedNow to an ever-growing
technology list and how it may
interfere with the other projects we
have in the works, but two key points
reassured me:
1. We don't have to implement it
overnight. We can begin a formal
exploration, determine the right
partner to enable us and then get
into full-scale implementation as
timing fits.
2. In speaking to colleagues who've
already made the leap to FedNow,
I've consistently been told that
onboarding was far simpler than
they thought it would be. Early
adopters are saying, " Don't be
scared; it's not that tough. "
Those points support decisionmaking
for all of us. Once
community banks get comfortable
with a technology, they jump in to
embrace what it offers-and ICBA
and ICBA Payments are our partners
on that journey. From working with
core providers to advocate for a
seamless implementation to offering
solutions that can augment and
support FedNow's offerings, both
ICBA and ICBA Payments stand
ready to help community banks
make the jump.
Because-and make no mistake
about it-it's not if, but when, you
will introduce FedNow. In our hightech,
high-touch model, being able
to compete on instant payments
is going to be a big part of high
tech. We have to get involved to
stay competitive. FedNow truly is
community banks' best chance to
flourish in the payments space.
Derek Williams is president and
CEO of Century Bank & Trust in
Milledgeville, Ga.
Derek Williams
Chairman, ICBA
" Once community
banks get
comfortable with
a technology, they
jump in to embrace
what it offers. "
Quote of
the month
" A leader takes people where
they want to go. A great
leader takes people where
they don't necessarily want
to go, but ought to be. "
-ROSALYNN CARTER,
FORMER FIRST LADY, WRITER
AND ACTIVIST
independentbanker.org // 7
Photo by Chris Williams
http://www.independentbanker.org
Independent Banker - January 2024

Table of Contents for the Digital Edition of Independent Banker - January 2024
