This week's top payments headlines include the Federal Reserve Board's decision to extend operating days for Fedwire® Funds Service and the National Settlement Service to include Sundays and weekday holidays. A new report from Javelin Strategy & Research, Unpacking the Modern Payment Stack, offers banks guidance on building a modernization roadmap. Meanwhile, as digital asset adoption grows, financial institutions are increasingly focused not just on whether to enter the crypto and stablecoin space, but on how to do so strategically. Read on to learn more.
1. Federal Reserve Board Announces Expanded Operating Days of Two Large-Value Payments Services, Fedwire® Funds Service and the National Settlement Service (NSS), to include Sundays and Weekday Holidays (Federal Reserve)
The Federal Reserve Board on Thursday announced expanded operating days of two large-value payments services, Fedwire® Funds Service and the National Settlement Service (NSS), to include Sundays and weekday holidays. The Reserve Banks will implement this expansion in several years, no earlier than 2028 to ensure operational and industry readiness. Currently, both the Fedwire Funds Service and NSS operate Monday through Friday, excluding holidays. (Read more.)
2. How Emerging Technologies Are Powering the Modern Payments Stack (Payments Journal)
For years, tech and payments leaders have called for financial institutions to modernize their core banking systems. However, the meteoric rate at which payment technologies have evolved has caused many financial institutions to struggle to identify the optimal components of a modern payment stack. In the Unpacking The Modern Payment Stack: What Matters Most for Banks report, Matthew Gaughan, Payments Analyst, and James Wester, Co-Head of Payments at Javelin Strategy & Research, examined the many layers that make up a payment stack and offered financial institutions insights for developing their modernization road map. (Read more)
3. White-Label Crypto: Speed to market, Risks to Reputation-and Maybe More (Financial Brand)
As digital asset adoption accelerates, financial institutions are weighing not just whether to get into the crypto and stablecoin space, but how. Some banks may ultimately build proprietary infrastructure, but many-including community banks and credit unions-are turning to white-label providers to fast-track their entry. There's a spectrum of products and services that these institutions can offer. These range from cryptocurrency trading and custody inside their digital banking apps to collateralized lending with custody of digital assets via a qualified third-party to accepting and settling U.S. dollar stablecoin transactions for business customers. (Read more.)
What does the Fed's announcement about expanding the operating days of two major payments services, Fedwire® Funds Service and the National Settlement Service (NSS), to include Sundays and holidays, mean for your financial institution? Where does your institution stand when it comes to white-label crypto adoption?
Check back soon for our next issue, which will again highlight the industry's most pressing and need-to-know developments.
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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.
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