ICYMI: Nacha Smarter Faster Payments insights

The Federal Reserve brings important information about FedNow and how the institutions can engage in the service and adopt it. Currently, slightly more than 100 institutions have participated in the initial release of FedNow. With the involvement of these institutions, banks and other organizations will soon have access to new use cases, which may influence how US institutions embrace this innovation within the instant payments framework.

We can learn from other RTP networks released in various countries, such as Pix in Brazil. In just two years, this network has become one of the most widely used payments methods in the country. Here are the biggest lessons we can learn from Pix:

1. Become experts in law and regulation
2. Actively participate in discussions that influence decisions
3. Invest in partnerships
4. Prioritize user experience
5. Test the process for issues to enhance security and ease-of-use.

Read more about the key takeaways from Brazil’s implementation of PIX here.

The dimension of the challenge to implement new networks on the vast and decentralized US market will likely be driven by competition and innovation. Among the long list of variables that may affect the implementation of new networks are the technologies and approaches that institutions may pair with payment systems. Technologies such as tokenization, AI, Pay by Bank and cross-border payments have the potential to support and impact FedNow and the adoption of other new payment methods in the US.

With the adoption of these new technologies, we have reached two main conclusions. First, the growing risk of fraud from these new technologies proves that there is a demand for heightened cybersecurity within organizations. Second, Open Banking is inevitable and will become a major component of the financial industry within the next couple of years.

The incredible keynotes for Nacha 2023 deserve a mention with their intriguing insights and motivational stories. Ben Nemtin presented his five steps “to make the impossible possible,” which you will soon be able to see his story produced as a film adaptation.

Shola Richards talked about team cohesion and the ubuntu concept, roughly translated as “humanity toward others”. His talk reminded the event’s attendees to value the spirit of collaboration. Lastly, Molly Bloom shared the amazing anecdotes from her life, some of which you may recognize from the popular motion picture, Molly’s Game.