FinTech Automation (FTA) is a FinTech-as-a-Service platform. A recent press release from FTA announced that they have partnered with the Federal Reserve Bank of Boston to enable financial technology payment services on the FedNow service. The FedNow service is an instant payment infrastructure developed by the Federal Reserve, where funds are settled in an instant.
The founder of FinTech Automation, David Park, stated that;
“One of our main goals has been to help banks, credit unions, and ODFIs in launching new embedded finance solutions. The ability to facilitate secure instant payments through the FedNow System will be a real game changer for these financial institutions. Using our platform, clients will have the ability to deploy this enabling technology quickly without having to touch lines of code.”
Financial Technology And FedNow
The FedNow service will be implemented in July of 2023. Banks can build upon the service, which would work 24 hours a day and 365 days a year. This is of great benefit to merchants comparing it to the current system, which is closed on weekends and holidays, the FedNow service will also have significantly lower fees, sitting at an average of US$0.23 per transaction.
The FedNow service isn’t mandatory; it is just an improvement for the current ecosystem. Although, as the adoption of the service increases, those banks not participating will be left behind, as transactions using the service are only possible with participating banks.
As the adoption of the service increases, there will be more and more FinTech solutions provided. Finzly, another FinTech solution, allows financial institutions to trial the FedNow service using APIs.
