Independent Banker - November 2022 - 9

FROM THE TOP
" FedNow can be another positive
differentiator for our nation's
community banks, but we must be
ready for this real-time service and
its 24/7/365 requirements. "
Brad M. Bolton
Chairman, ICBA
Brad M. Bolton is president and
CEO of Community Spirit Bank in
Red Bay, Ala.
W
e've been working toward a
faster payments future for a
decade now, and we're finally seeing
the fruits of our labor: the launch of
FedNow. Our efforts to encourage
the Fed to offer an instant payments
solution have led to this result; it was
our voices that expedited FedNow's
time to market, with the Fed updating
the original timeline due to our
focused advocacy efforts. By mid2023,
we will be able to begin offering
this solution to our customers.
With FedNow entering the
market, community banks can add
in a missing payments link-instant
payments-and help level the playing
field with the nation's largest financial
institutions. FedNow will be a great
equalizer for the industry, bringing
real-time payment clearing and
settlement to community banks
across the country.
So, with FedNow's launch on the
horizon, what can community banks
do to prepare? I, for one, have been
speaking with our core provider,
expressing our interest in FedNow
and getting into the details of when
it will be available to us and at
what price.
While many providers are still
ironing out their plans, we must
actively seek information. It's
important to reach out and emphasize
that FedNow is a priority. Think of it
like you would an advocacy visit on
Capitol Hill: Go in with your ask, and
make it clear what you want from
them and by when. Every executive
reading this column should take five
minutes to send an email to their core
provider to inquire about FedNow
availability, timing and pricing.
My top four
Recommendations to
prepare for FedNow
1. Establish an instant payments
committee
2. Demand firm commitments
and pricing from your core
provider
3. Formulate marketing
campaigns to inform
customers
4. Provide feedback to ICBA
to share with the Fed
Connect with Brad @BradMBolton
While you're waiting to firm up
those details, take steps to ensure
your teams are up to speed on
what FedNow will mean for your
customers. From signing up for
the FedNow webinar series offered
by ICBA Bancard to subscribing to
FedNow notification emails, resources
exist that will help you deepen
your knowledge of the solution and
its potential.
In addition, having conversations
with your Fed rep to understand how
you should prepare will provide a
firsthand perspective on the more
nuanced elements of FedNow
implementation.
Regardless of the steps you take,
the time to act has arrived. FedNow
can be another positive differentiator
for our nation's community banks,
but we must be ready for this realtime
service and its 24/7/365
requirements. We need to be able
to upgrade our infrastructure and
processes in a positive, strategic way
to make the most of the opportunity.
For community banks, it's time to
unlock FedNow's potential and take
advantage of all that this solution
will offer. 
independentbanker.org Q 9
Photo by Chris Williams
http://www.independentbanker.org
Independent Banker - November 2022

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