DALLAS, April 26, 2023 (GLOBE NEWSWIRE) — FinTech automation (“FTA”) announced today that it has signed an agreement with the Federal Reserve Bank of Boston to be a provider of enabling financial technology for instant payment services on FedNowSm The service, which will be launched in phases starting in July 2023.
The FedNow service is a new instant payment infrastructure developed by the Federal Reserve that will allow financial institutions of all sizes to provide secure and efficient instant payment services. Through the service, funds will be settled between participating financial institutions immediately, without the build-up of interbank liabilities or short-term credit risk.
David Park, Founder and CEO of FinTech Automation said: “One of our main goals has been to help banks, credit unions and ODFIs launch new embedded funding solutions. The ability to facilitate secure instant payments through the FedNow system will be a real game changer for these financial institutions. Using our platform, customers will have the ability to deploy this enabling technology quickly without having to touch lines of code.”
The FedNow platform will offer core clearing and settlement capabilities with credit transfers completed in seconds, making instant payments available 24x7x365. It also has 24/7 access to balance information, along with activity reports available on demand or at the end of the day. In addition, financial institutions will be able to settle their own main account or a correspondent’s main account and include configurable functions for each activated routing number (RTN), such as the ability to receive customer transfers, send and receive customer transfers, receive requests for payment, support transfers of financial institutions’ liquidity management and support settlement services for other financial institutions.
Financial institutions using the FedNow service will remain competitive, have the ability to create new financial products and meet the growing needs of customers. In turn, this will allow financial institutions’ corporate customers to gain better control over cash flow management, improve the efficiency of corporate payments and streamline their reconciliation processes.
The initial release of the FedNow service will provide basic functionality supporting a variety of features, including account-to-account (A2A) transfers and bill payment.
About FinTech Automation
FinTech Automation is a Dallas-based Fintech as-a-Service platform that enables digital transformation for financial institutions (FIs). The platform consists of FTA’s proprietary UniFi Banking, Trust and Wealth Management core applications and 7 microservices-based applications that offer a complete suite of banking and wealth management applications. With FTA’s API management application, AccelerationCloudTM, the platform is integrated with over 30 best third-party applications to provide business intelligence, Open Banking, CRM, machine learning, digital account opening and robotic process automation without having to code a single line. The FTA platform is uniquely built for banks, fintechs and FIs offering Bank Sponsorship, Banking as-a-Service (BaaS), AdviserTech, Card Issuing and Embedded Finance.
www.FinTechAutomation.com
If you would like additional information, please contact John Alvarez at (214) 624-1022 or [email protected].
