Independent Banker - February 2022 - 31

" We expect to begin extensive pilot
testing in fall 2022, in parallel with
finalizing our development of release
one, to ensure the FedNow Service
is ready for general availability in
2023, " Stanescu says.
" This operating model-
iterative and parallel testing and
development-ensures an agile
approach and strong collaboration
as the Federal Reserve and pilot
organizations jointly prepare our
solutions for launch. "
As part of preparatory efforts, pilot
participants have been encouraged
to assess their existing platforms,
products and functionality. In
some cases, FedNow specifications
may require upgrades to ensure
community bank systems can
integrate appropriately.
" We actually, as a result of COVID,
had bumped up our adoption of a new
online banking platform. That was a
necessary step to help get us ready for
FedNow, " says Sherri Reagin, chief
financial officer at $540 million-asset
North Salem State Bank in North
Salem, Ind., and a FedNow Pilot
Program participant.
" Our older platform would not
have talked to FedNow through our
core provider, so it is a multilayer
process to be able to use the FedNow
technology, " she adds. " Fortunately,
we had made that move. Had we not,
we would have been further down
in the [FedNow] queue with our
core provider. "
Strategic considerations
Beyond assessing operational
functionality, experts recommend that
community banks take a step back to
evaluate the FedNow opportunity in
light of business plans. Doing so will
help community banks align goals
and resources to determine the best
partners, approaches and use cases to
emphasize in their FedNow release.
FedNow planning resources
The Federal Reserve
The Federal Reserve has made numerous resources available
through its FedNow Explorer website, including:
f FedNow Service Readiness Guide: bit.ly/fednowreadiness
f Product Capability and Planning Information Sheet:
bit.ly/fednowproductplanning
f Technology Planning Information Sheet: bit.ly/fednowtech
f Treasury Operations Planning Information Sheet:
bit.ly/fednowtreasury
f FedNow Service Product Sheet: bit.ly/GTKfednow
Visit explore.fednow.org for these and other tools to support your
payments planning.
ICBA & ICBA Bancard
In addition, ICBA and ICBA Bancard have developed
informational pieces to help with the FedNow implementation
process, including:
f Next steps on your instant payments journey: Updates on
FedNow (recorded webinar): bit.ly/fednowwebinar
f Value of the FedNow Service for Community Banks:
bit.ly/icbafednow
f Faster Payments Resource Page: bit.ly/icbafasterpayments
f ICBA Bancard Digital Payments Strategy Guide:
icba.org/paymentsstrategy
Additional resources will be developed and shared directly with
ICBA members as the service launch date nears. Visit icba.org for
more information.
" FedNow offers a broader strategy
" [With FedNow,]
community banks
have an opportunity
to seize the
moment. "
-TINA GIORGIO, ICBA
play, and community banks have an
opportunity to seize the moment, "
says ICBA Bancard president and
CEO Tina Giorgio. " This is a major
change that's coming. How that fits
into everything else you're doing
is the most important part. It's not
about bolting on another solution;
it's about taking stock of how you're
doing things. "
To that point, community banks
independentbanker.org Q 31

http://www.bit.ly/fednowreadiness http://www.bit.ly/fednowproductplanning http://www.bit.ly/fednowtech http://www.bit.ly/fednowtreasury http://www.bit.ly/GTKfednow http://explore.fednow.org http://www.bit.ly/fednowwebinar http://www.bit.ly/icbafednow http://www.bit.ly/icbafasterpayments http://www.icba.org/paymentsstrategy http://www.icba.org http://www.independentbanker.org

Independent Banker - February 2022

Table of Contents for the Digital Edition of Independent Banker - February 2022