Fintech
Temenos Completes Certification for Federal Reserve’s New Instant Payment Service
Temenos (SIX: TEMN) today announced that it has successfully completed certification for the FedNowSM Service, the Federal Reserve’s new instant payment offering launching in July 2023. Through Temenos’ flexible, cloud-native Payments Hub, banks can support the FedNow service and offer faster payments services to their customers.
FedNow is an instant payments network that moves funds directly and immediately between financial institution accounts in the United States. Participation in the program will enable banks’ customers to receive value into their accounts in near real time, thus outperforming traditional US payment clearing services with faster completions. Temenos will continue to enrich its FedNow capabilities, enabling its US clients to better serve customers with innovative payments solutions such as Request to Pay, accelerated payouts, and embedded finance offerings.
Christine Barry, Head of Banking & Payments, Datos Insights, commented: “For banks wanting to stay at the forefront of technology, participating in the FedNow Service will pave the way to creating additional differentiation for their customers. Offerings like Temenos’ core banking and payments cloud-native technology enables banks to innovate more quickly, giving customers access to faster payment methods which improve their cashflows and increase satisfaction, not just for Temenos’ banking clients but for their clients’ customers too.”
Ken Montgomery, Federal Reserve Bank of Boston first vice president and FedNow Service program executive, said: “We are excited that early adopters of all sizes across the country are making strides in their operational readiness for live transactions through the system. Completing certification is a key milestone for participating organizations to validate their ability to deliver instant payment services.”
Philip Barnett, President Americas, Temenos, said: “Temenos’ highly scalable platform with proven localization and ongoing investment in the US, enables banks to modernize their payments giving them the business agility required to benefit from new market initiatives such as instant payments. Temenos has a wealth of experience in supporting global financial institutions with their payments transformation across multiple payment schemes, clearing infrastructures and evolving regulations. In addition, many banks’ existing core technology can limit the benefits they provide to their customers from instant payments services like FedNow. Temenos can address these limitations by enabling banks to progressively modernize their core capabilities and accelerate the time to value. We see tremendous growth opportunities and are excited to have recently been selected by Convera, the global payments leader to modernize their payments infrastructure. We continue to invest in our single code base across core banking and payments making our offering the most compelling in the market.”
The benefits of this flexible, secure, and cost-efficient setup for instant payments are already well known to Temenos clients across the world, using instant payment rails including both ISO20022 and non-ISO20022 schemes such as UK Faster Payments and SEPA Instant in the European Union. FedNow certification further enhances Temenos’ capabilities in this area and reputation as a leader in the market. Temenos Payments is ranked #1 best-selling payments system in the global IBS Sales League Table 2023.
Temenos Payments Hub standardizes and simplifies payments operations within a centralized cloud-native platform and helps banks gain greater efficiency and lower costs. Temenos Payments Hub running in the cloud can scale massively handling all payment types and schemes.
Temenos offers a single platform across all banking verticals and business segments including payments and core banking. With Temenos, banks can progressively replace legacy systems, starting with payments. This way they can process payments at scale and pass on the benefits of the FedNow instant payments to their customers by using a modern, cloud-native core, unincumbered by legacy core systems. Therefore, the FedNow rollout process can become a key step towards the bank’s full modernization.