Welcome to the September 2025 edition of the Innovating Payments Executive Summary. This month’s issue highlights several key developments shaping the financial services landscape. First, the Federal Reserve Board has announced a conference on payments innovation, scheduled for Tuesday, October 21. The event aims to bring together industry leaders to explore emerging technologies and trends that are transforming how money moves.
In the banking sector, FDIC-insured institutions reported strong performance in the second quarter of 2025, posting a return on assets of 1.13% and net income of $69.9 billion. Meanwhile, the Consumer Financial Protection Bureau has proposed a rule that would limit its oversight of individual nonbank entities, signaling a potential shift in regulatory focus.
Despite the increasing popularity of real-time payments, concerns about fraud still slow down wider adoption. Interestingly, according to PYMNTS’ The Real-Time Payments Tracker®, Reality Check: Fact vs. Fiction in Real-Time Payments Fraud, real-time transactions face much less fraud than traditional methods like checks or wires. However, many institutions still view them as riskier, highlighting the need for more education and trust-building in the industry.
On the innovation front, stablecoins are gaining traction beyond the cryptocurrency sector. Thanks to the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (“GENIUS Act”) and “Digital Asset Market Clarity Act” (“CLARITY Act”), these digital assets are becoming part of the mainstream in corporate and policy circles, with the potential to reshape domestic and international payment systems. As Finextra points out, stablecoins are ready to change how money moves in the U.S. and worldwide.
Finally, mark your calendar for these upcoming NEACH events:
Read on to learn more.
Top Headlines
Federal Reserve Board Announces It Will Host a Conference on Payments Innovation on Tuesday, October 21
The Federal Reserve Board announced it will host a payments innovation conference on Tuesday, October 21, according to a news release. The conference will bring together various stakeholders to discuss further innovation and improvements to the payments system.
"Innovation has been a constant in payments to meet the changing needs of consumers and businesses," Governor Christopher J. Waller said in the release. "I look forward to examining the opportunities and challenges of new technologies, bringing together ideas on how to improve the safety and efficiency of payments, and hearing from those helping to shape the future of payments."
The conference will include panel discussions on various aspects of payments innovation, such as the merging of traditional and decentralized finance; new stablecoin use cases and business models; the link between artificial intelligence and payments; and the tokenization of financial products and services.
The Payments Innovation Conference will be livestreamed for the public at federalreserve.gov, with additional details to follow later.
FDIC-Insured Institutions Reported Return on Assets of 1.13 Percent and Net Income of $69.9 Billion in Second Quarter 2025
The Federal Deposit Insurance Corporation (FDIC) released its latest Quarterly Banking Profile, a detailed summary of financial results based on reports from 4,421 insured commercial banks and savings institutions, according to an FDIC news release. In the second quarter of 2025, insured depository institutions reported a return on assets (ROA) of 1.13 percent and total net income of $69.9 billion, which is down $677.3 million (1 percent) from the previous quarter. Net income for the industry would have increased were it not for an increase in provision expenses related to a large bank acquisition.
Other highlights include:
- Community bank net income increased from the prior quarter.
- The deposit insurance fund reserve ratio increased by five basis points to 1.36 percent; now exceeds the statutory minimum.
- Quarterly net interest margin remained relatively unchanged from the prior quarter.
- Asset quality metrics remained generally favorable, although weakness in certain portfolios persisted.
- Loan growth accelerated from the prior quarter.
- Domestic deposits increased for the fourth consecutive quarter.
For additional details, click here.
CFPB Proposes Trimming Nonbank Purview
“The Consumer Financial Protection Bureau proposed a rule that would limit its ability to supervise individual nonbanks, according to an entry in the Federal Register,” reported Payments Dive.
According to the news source:
The CFPB said it’s seeking to adopt a standard definition of “risks to consumers with regard to the offering or provision of consumer financial products or services” that would “bind the Bureau” in designating nonbanks falling under CFPB supervision.
The proposed rule has the potential to affect “a large population of firms,” the CFPB noted. “The Bureau expects that under the proposed rule it will be less likely to designate any particular entity for supervision, all other factors being equal,” the proposal notes.
Comments on this proposed rule are open until Sept. 25. To read the proposed rule in its entirety or to provide comments, click here.
Real-Time Payments Fact vs. Fiction
Fear of fraud remains a major obstacle to adopting real-time payments. Many banks restrict participation to receive-only mode due to concerns that faster transactions may increase vulnerability to scams and fraud, says The Real-Time Payments Tracker®, Reality Check: Fact vs. Fiction in Real-Time Payments Fraud.
Here are a few excerpts from the Tracker.
- Fraud’s ranking as an obstacle to adoption increased this year. In fact, its ranking as an obstacle to real-time rails adoption experienced the largest increase this year, rising to fourth place from ninth in 2024. However, it was still relatively low, cited by 26% of FIs. Eighty-five percent of U.S. payments professionals anticipate increased fraud as instant payments scale.
- Fraud remains significantly higher on traditional payment rails, with 63% of firms reporting check fraud in 2024, versus just 2% on real-time platforms like RTP® and FedNow®.
- Top fraud prevention measures. U.S. banks ranked AI/ML (40%), real-time detection (39%), and MFA (35%) as top fraud prevention priorities, with data sharing (32%) and cross-sector coordination (27%) close behind—all focused on stopping fraud before funds are transferred.
To learn more, click here.
Stablecoins
GENIUS and CLARITY ACT: US Financial Institutions Entering the Digital Space
“Stablecoins — once mainly restricted to the cryptocurrency world — are entering the corporate and policy mainstream, potentially reshaping how money moves in the United States (US) and around the world,” contends Finextra in an August 24 article. “Major traditional financial institutions like Bank of America, Citigroup and JPMorgan Chase prepare to launch stablecoins to compete in the evolving financial landscape. Their exploration could signal an irreversible integration of blockchain technology into mainstream finance.”
Alongside the “Guiding and Establishing National Innovation for U.S. Stablecoins Act,” commonly referred to as the GENIUS Act, which establishes a comprehensive federal regulatory framework for stablecoins, Congress is advancing the “Digital Asset Market,” known as the CLARITY Act. The legislation passed the House with strong bipartisan support, indicating increasing momentum toward clearer jurisdictional limits and regulatory certainty for digital asset markets.
The CLARITY Act defines important operational standards for banks offering crypto custody services, focusing heavily on secure cryptographic key management and thorough risk assessment. It guides institutions on how to integrate digital assets into their infrastructure while staying aligned with existing legal and regulatory frameworks. The Act also covers key compliance areas, including anti-money laundering protocols, audit readiness, enterprise risk management, and the technical expertise needed to support digital asset operations.
As pointed out by Finextra, a growing number of major U.S. banks are actively considering how to incorporate crypto products into their service offerings. With clearer regulatory guidelines, institutions can proceed with greater confidence—strategically and securely, while complying with regulatory requirements. Their move into the digital asset market shows a growing belief in the long-term importance of cryptocurrencies within the broader financial system.
Although the success of these efforts remains uncertain, the message from policymakers is clear: the digital dollar era is beginning. Early adopters among financial institutions could be well-positioned to gain significant competitive advantages.
For more on this topic, click here.
NEACH—Upcoming Events
2025 End-User Payments Fraud Symposium (Virtual Event), September 23-24, 2025
Fraud losses surged to 33% in 2024, reaching $16.6 billion, according to the FBI's IC3.gov. And that's just what was reported. For every attack that makes headlines, dozens go undetected—and unaddressed. Fraudsters are smarter, faster, and more organized than ever. Are you confident your organization is prepared? Are your corporate clients?
Join us at the End-User Payments Fraud Symposium. Click HERE for the agenda. To register, click HERE.
2025 Financial Fraud Forum (Virtual Event), October 15-16, 2025
The annual Financial Fraud Forum returns, featuring some of the best presenters and practitioners tackling fraud issues. The Forum includes presentations on current fraud trends, tips to overcome even the most challenging investigations, payment rules and regulations that can help with recovery, tips that provide attendees with insight into the realities of today's fraud threats, and more.
Click HERE to learn more and register.
2025 Future of Payments Symposium, November 3-4, 2025, at the Boston Marriott in Burlington
This symposium brings together economic experts, leaders of financial institutions, and FinTech innovators to examine the trends, partnerships, and technologies shaping the future of financial services. From macroeconomic challenges and market consolidation to real-world partnership successes and cutting-edge advancements in AI, fraud prevention, and instant payments infrastructure, this event acts as your guide to staying relevant—and thriving—in a rapidly evolving financial landscape. Click HERE to learn more and to register for the symposium.
NEACH - New England Automated Clearing House Association is a neutral, member-focused advocate. Our role is to give you the intelligence, context, and connections you need to make informed strategic decisions. We bring together industry leaders, policymakers, and innovators so you can evaluate innovation through the lens of your institution’s mission and market strategy. For more information, visit neach.org.
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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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