As the launch of the FedNow is set to evolve the US payments ecosystem, Icon Solutions has developed and launched a FedNow scheme pack for its Icon Payments Framework (IPF).
The launch seeks to boost the way US banks can now connect to the FedNow Service, providing instant payments and enabling elevated flexibility in the payment process.
Donal Fleming, CTO at Icon Solutions, commented on the move: “US banks have an ongoing challenge to balance their IT priorities.
“On the one hand they have near-term requirements like FedNow compliance and ISO20022. On the other they have long-term strategies around driving innovation, improving CX and reducing costs. Often, the pressures of the former delay the latter as banks have realised that the home-built or vendor sourced applications they’ve used for decades are unsustainable and lack agility.”
The FedNow Service is the new instant payment infrastructure developed by the Federal Reserve that allows US financial institutions to provide safe and efficient instant payment services.
IPF, a low-code, cloud-native, open-source framework, seeks to allow banks to develop their own payment processing solutions. Scheme packs enable IPF customers to integrate with various payment schemes without any development work.
Fleming continued: “Banks are often too dependent on solution vendors and can’t offer the latest functionality to customers quickly. With growing competition from other banks and fintechs, U.S. banks need partners that give them more control over payment solutions, not less.
“These are complex challenges and we are here to help banks meet them head on. And with IPF banks can take on scheme compliance at pace, allowing them to move on other priorities that cut costs and grow revenues.”
