The Federal Reserve has a busy multi-year product and technology roadmap ahead, and as always, we are committed to maintaining the security and reliability of our services. With so many projects underway, it can be difficult to know where your organization should focus. To help you keep track of some of our key efforts, review the latest updates below.
- Account Management Information and Daylight Overdraft Reports application changes: As part of our ongoing efforts to improve our customers’ experience, in late second quarter 2020, we will update the look and feel of the Account Management Information (AMI) and the Daylight Overdraft Reports applications. Enhancements will result in a more modern and user-friendly interface that is consistent with industry standards. The changes will also include a new technical infrastructure that will help make the applications more secure and resilient, as well as provide the foundation for future features and capabilities.
- FedACH® platform modernization: In September 2018, we announced plans to begin modernizing the platform we use to support FedACH processing services. The new platform is currently targeted for implementation in the second half of 2020. We are designing a more distributed processing infrastructure that will allow added flexibility and scalability to help ensure the continuing efficiency and business value of FedACH Services. The Federal Reserve Banks will complete rigorous internal and customer testing as part of the implementation process. Internal testing is underway, and we anticipate that customer testing will begin in mid-2020.
- Enhancements to Fedwire® Securities Automated Claim Adjustment Process (ACAP): As communicated in late August 2019, implementation of the ACAP enhancements, previously scheduled for October 28, 2019, was delayed until no earlier than second quarter 2020 at the request of industry participants. Subsequent to that communication, industry participants evaluated readiness plans and expected to need additional time beyond the second quarter of 2020 to be prepared for the ACAP enhancements. In December 2019, we communicated that we would continue to evaluate input from industry participants and identify a feasible date. The new date has not yet been determined; however, we expect to communicate additional information over the coming months.
- Payment services modifications to support Same Day ACH: The Board of Governors of the Federal Reserve System has approved modifications to the Federal Reserve Banks’ FedACH Services, National Settlement Service and Fedwire Funds Service to help facilitate adoption of a later Same Day Automated Clearing House (ACH) processing and settlement window. These changes are in response to a rule change approved by Nacha’s voting members to create a third new processing window for Same Day ACH items. The Federal Reserve Banks will make these changes in alignment with, and in support of, Nacha’s effective date of March 19, 2021. We will provide additional information regarding the changes closer to implementation.
- Fedwire Funds Service’s ISO® 20022 migration: Based on an industry request to revisit the ISO 20022 migration strategy, the Federal Reserve Banks issued a press release on September 23 to announce a pause in the three-phased migration to the ISO 20022 messaging standard for the Fedwire Funds Service. As a result, Phase 1 will not be implemented in November 2020 as previously planned. The Federal Reserve Banks’ assessment will include discussions with Fedwire Funds Service participants and The Clearing House Payments Company L.L.C., operator of the CHIPS® funds-transfer system, to help ensure an appropriately harmonized implementation approach for U.S. high-value payments. Based on those discussions and other aspects of the assessment, the Federal Reserve Banks will announce revised implementation plans.
- FedNowSM Service development: The Federal Reserve Banks are making progress to develop the FedNow Service, our upcoming instant payment offering. Thanks to your engagement, the August 2019 Federal Register notice received over 180 comments from a wide range of industry stakeholders, and we are incorporating this feedback as we determine the FedNow Service’s features, design and implementation timeline. The Board expects to publish a final FedNow Service description in a subsequent Federal Register notice later this year. While we are targeting 2023 or 2024 for the initial service launch, we are working diligently to launch the FedNow Service as soon as possible.
If you have questions about these initiatives and how they will impact your organization, please contact your account executive. We look forward to partnering with the industry to deliver greater speed, security and efficiency to the U.S. payment system.
“ISO” is a registered service mark of the International Organization for Standardization.
“CHIPS” is a registered service mark of The Clearing House Payments Company L.L.C.