Welcome to Innovating Payments Top 3 Headlines for the week of March 5, 2023. In this issue, Jack Henry & Associates and ACI Worldwide are gearing up for the launch of FedNow(SM). According to Payments Dive, "Jack Henry expects to be the first core provider of technology services to banks to go live with FedNow and it plans to start beta testing in May or June." Meanwhile, the Consumer Financial Protection Bureau (CFPB) warned that the financial products used to deliver Social Security and unemployment payments could often include high surcharges that eat away at people's benefits. Also, in this issue, the Biden administration released its long-awaiting National Cybersecurity Strategy.
Read on to learn more.
- Jack Henry, ACI pounce on FedNow (PAYMENTS DIVE)
Jack Henry & Associates and ACI Worldwide are among the payments companies gearing up for the launch later this year of the Federal Reserve banks' new real-time payments system, called FedNow. It's the most significant federal government initiative on the payments front in decades, aimed at updating the Fedwire system with a faster, more efficient means of sending money in the U.S. It has been in development for years and is expected to start up as early as May. (Read more.)
- CFPB Says Unneeded Fees Drain Public Benefit Payments (PYMNTS)
America's financial watchdog says unnecessary fees are cheating retirees out of their benefits. In its latest salvo against unwanted fees, the Consumer Financial Protection Bureau (CFPB) on Wednesday (March 1) warned that the financial products used to deliver Social Security and unemployment payments can often include high surcharges that eat away at people's benefits. (Read more.)
- The Biden-Harris Administration Releases New National Cybersecurity Strategy (Lawfare)
On March 2, the Biden administration released its long-awaited National Cybersecurity Strategy. The new strategy comes more than two years after President Biden took office and more than four years after the Trump administration issued its National Cyber Strategy in September 2018. The release also occurs in the wake of a range of significant cyber intrusions and ransomware attacks, including SolarWinds, Microsoft Exchange, Colonial Pipeline, and JBS Foods. (Read more.)
What preparations is your financial institution making for the launch of FedNow? How can your institution better educate seniors about the benefits of ACH payments? What is our financial institution doing to mitigate cyber risk?
Check back soon for our next issue, highlighting the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.