The convenience that new fintech tools offer is an important factor for user compliance, and that is why consumers in the United States are actively supporting them. To cater to these preferences, innovative payment options like P2P payment apps and autopay have become popular. One such platform, FedNow, was introduced last year with the aim of providing better convenience, speed, and choice, and it has proven to be a notable addition.
As we begin 2024, six months after its launch, the FedNow Service is off to a start with 500 plus institutions actively participating as receivers or senders on the network. These institutions include a range of banks and credit unions headquartered in 45 states. The size of these institutions varies from $500 million to a staggering $3 trillion in assets.
Since its introduction in July with 35 participating institutions, the FedNow Service has witnessed wide adoption. The Federal Reserve Banks anticipate growth of the network throughout 2024 as they leverage their well-established connections with thousands of financial institutions across the country to ensure accessibility to the FedNow Service.
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Key Takeaways
- Impressive Participation: The FedNow Service, celebrating six months since its launch, boasts an active engagement from 500 plus institutions, ranging from banks to credit unions. This marks a significant upswing from its initial 35 participating institutions, indicating a strong initial adoption and foretelling further growth throughout 2024.
- Industry Endorsement: The involvement of a diverse array of financial institutions across 45 states, with varying sizes and assets, underscores the financial industry’s endorsement of FedNow. While major banks like Citigroup and Bank of America are yet to join, the support from large institutions like JPMorgan, US Bank, and Wells Fargo showcases the increasing appeal of this contemporary instant payments system.
- Gradual Adoption Challenges: Despite the positive momentum, the adoption of FedNow has been gradual, with a considerable number of credit unions and banks still pending integration. Many existing participants are currently only receiving payments, emphasizing the ongoing efforts needed to encourage broader participation and configuration for payment initiation.
- Versatile Use Cases: The FedNow Service demonstrates its versatility through various innovative use cases. Fintech firms, such as Plaid, utilize the platform to provide instantaneous payouts for a variety of financial activities, tackling shared issues such as shortening micro-deposit settlement times. Public projects that demonstrate the wider societal consequences and variety of uses of FedNow include the Treasury Department of the Commonwealth of Virginia’s successful execution of rapid payments to charitable groups.
FedNow Service On Its Seventh Month – 500 Plus Participating Institutions Drive Instant Payments Adoption
In a significant update, the FedNow Service, marking six months since its launch, has entered the new year with an impressive participation of 500 plus institutions actively engaged as senders or receivers on its network. Representing a diverse range of banks and credit unions spanning 45 states, these institutions exhibit varying sizes, ranging from under $500 million to over $3 trillion in assets.
Launched initially with 35 participating institutions in July, the FedNow Service has experienced notable adoption, indicating the anticipation of strong network growth throughout 2024. As the Federal Reserve Banks strive to enhance accessibility to the FedNow Service, the increasing involvement underscores the financial industry’s endorsement of this contemporary instant payments system. However, it’s worth noting that major banks like Citigroup, Bank of America, Capital One Financial, and PNC, all among the nation’s top 10 largest banks, have yet to join FedNow, as per the latest list of participants released by the Fed.
First vice president of the Federal Reserve Bank of Boston and FedNow program executive Ken Montgomery stated that the FedNow Service is still in its early phases of development. He expressed his happiness with the significant uptake that was observed in the first few months, which signaled the end of the launch phase and the start of regular operations. Montgomery praised the growing number of service providers, financial institutions, and other companies that are a part of the payment ecosystem for realizing and seizing the significant opportunities presented by this cutting-edge instant payment system.
Launched in July, FedNow pledged to expedite transactions for both consumers and companies. Presently exclusive to banks, the Federal Reserve and its FedNow team have been actively promoting participation through public communications and webinars. The aim is to encourage more banks to integrate into the system as the network’s appeal grows with an expanding base of financial institutions, resulting in increased reach.
Cassie Burica, a Fed spokesperson, highlighted that some non-participating banks were involved in FedNow’s prior pilot program, indicating a potential future joining. Burica also mentioned that the CEOs of two major banks, Citi and Bank of America, affirmed during a hearing on the Senate Banking Committee last month that their respective banks plan to join the system in the upcoming months.
Certainly, the largest bank in the United States, JPMorgan, quickly integrated with FedNow from the outset, and US Bank and Wells Fargo have also become part of the network, showcasing support from major institutions. However, the adoption of FedNow has been gradual.
With nearly 11,600 credit unions and banks nationwide, the majority of them are yet to come on board. Among those that have connected, many are solely receiving payments and have not yet configured their systems to initiate payments. While the introduction of FedNow is encouraging increased participation, the US still trails behind other countries in developing instant payment systems. Some of these nations, including Brazil and India, have made significant strides by mandating the use of real-time systems.
Here is the list of all the financial institution added until the date this article was published.
| Organization Name | City | State |
|---|---|---|
| 1st Bank Yuma | Yuma | Arizona |
| 1st Source Bank | South Bend | Indiana |
| ACCESSbank | Omaha | Nebraska |
| Addition Financial Credit Union | Lake Mary | Florida |
| Advantage One Credit Union | Brownstown | Michigan |
| Adyen | San Francisco | California |
| Affinity Bank, National Association | Covington | Georgia |
| Alliance Bank | Cape Girardeau | Missouri |
| American National Bank | Omaha | Nebraska |
| Americana Community Bank | Sleepy Eye | Minnesota |
| Apple Federal Credit Union | Fairfax | Virginia |
| Arbor Bank | Nebraska City | Nebraska |
| Arcadian Bank | Albert Lea | Minnesota |
| Asian Bank | Philadelphia | Pennsylvania |
| Auburn Banking Company | Auburn | Kentucky |
| Auburn Savings Bank | Auburn | Maine |
| AVB Bank | Broken Arrow | Oklahoma |
| Avidia Bank | Hudson | Massachusetts |
| BancFirst | Oklahoma City | Oklahoma |
| Bangor Savings Bank | Bangor | Maine |
| Bank & Trust Company | Litchfield | Illinois |
| Bank Five Nine | Oconomowoc | Wisconsin |
| Bank Independent | Sheffield | Alabama |
| Bank Irvine | Irvine | California |
| Bank of Alma | Alma | Wisconsin |
| Bank of Belleville | Belleville | Illinois |
| Bank of Burlington | South Burlington | Vermont |
| Bank of Edmonson County | Brownsville | Kentucky |
| Bank of Estes Park | Estes Park | Colorado |
| Bank of Franklin County | Washington | Missouri |
| Bank of Hillsboro | Hillsboro | Illinois |
| Bank of Hindman | Hindman | Kentucky |
| Bank of Iberia | Iberia | Missouri |
| Bank of Jamestown | Jamestown | Kentucky |
| Bank of North Dakota | Bismarck | North Dakota |
| Bank of Odessa | Odessa | Missouri |
| Bank of Rantoul | Rantoul | Illinois |
| Bank of Tescott | Tescott | Kansas |
| Bank of the James | Lynchburg | Virginia |
| Bank of Weston | Weston | Missouri |
| Bank of York | York | South Carolina |
| BankCDA | Coeur d’Alene | Idaho |
| BankSouth | Greensboro | Georgia |
| BCBank | Philippi | West Virginia |
| Beacon Credit Union | Lynchburg | Virginia |
| Belmont Bank & Trust Company | Chicago | Illinois |
| BNY Mellon | New York | New York |
| Branson Bank | Branson | Missouri |
| Bridge Community Bank | Mechanicsville | Iowa |
| Bryant Bank | Birmingham | Alabama |
| BTC Bank | Bethany | Missouri |
| Buffalo Federal Bank | Buffalo | Wyoming |
| California Coast Credit Union | San Diego | California |
| California International Bank, N.A. | Westminster | California |
| CAMPUS USA Credit Union | Gainesville | Florida |
| Cape Cod 5 | Hyannis | Massachusetts |
| Capitol Credit Union | Austin | Texas |
| Carter Bank & Trust | Martinsville | Virginia |
| Carver Federal Savings Bank | New York | New York |
| Casey State Bank | Casey | Illinois |
| CB&S Bank | Russellville | Alabama |
| CBBC Bank | Maryville | Tennessee |
| CBI Bank & Trust | Muscatine | Iowa |
| CBW Bank | Weir | Kansas |
| Central National Bank | Junction City | Kansas |
| Century Bank of Kentucky | Lawrenceburg | Kentucky |
| Chain Bridge Bank, N.A. | McLean | Virginia |
| Chesapeake Bank | Kilmarnock | Virginia |
| Citadel Federal Credit Union | Exton | Pennsylvania |
| Citizens Alliance Bank | Clara City | Minnesota |
| Citizens Bank | Mooresville | Indiana |
| Citizens Bank & Trust | Guntersville | Alabama |
| Citizens Bank of Edmond | Edmond | Oklahoma |
| Citizens Bank of Las Cruces | Las Cruces | New Mexico |
| Citizens Bank of West Virginia | Elkins | West Virginia |
| Citizens First Bank | Clinton | Iowa |
| Citizens Guaranty Bank | Irvine | Kentucky |
| Citizens National Bank | Bluffton | Ohio |
| Citizens National Bank | Sevierville | Tennessee |
| Citizens National Bank of Cheboygan | Cheboygan | Michigan |
| Citizens Savings Bank and Trust Company | Nashville | Tennessee |
| Citizens State Bank | New Castle | Indiana |
| Citizens State Bank | Roma | Texas |
| Citizens State Bank of La Crosse | Clayton | Wisconsin |
| City Bank | Lubbock | Texas |
| City National Bank | Metropolis | Illinois |
| City National Bank | Colorado City | Texas |
| City National Bank | Charleston | West Virginia |
| Claremont Savings Bank | Claremont | New Hampshire |
| CLB The Community Bank | Jonesville | Louisiana |
| Clearview Federal Credit Union | Moon Township | Pennsylvania |
| Clinton Bank | Clinton | Kentucky |
| CNB Bank | Carlsbad | New Mexico |
| CNB Bank & Trust, N.A. | Carlinville | Illinois |
| Coconino FCU | Flagstaff | Arizona |
| Colfax Banking Company | Colfax | Louisiana |
| Commencement Bank | Tacoma | Washington |
| Commerce Bank | Corinth | Mississippi |
| CommerceOne Bank | Birmingham | Alabama |
| Commercial Savings Bank | Carroll | Iowa |
| Commercial State Bank | Republican City | Nebraska |
| Commonwealth Credit Union | Frankfort | Kentucky |
| Community Bank of Mississippi | Forest | Mississippi |
| Community Bank of the Bay | Oakland | California |
| Community Bank of the South | Merritt Island | Florida |
| Community Financial Services Bank | Benton | Kentucky |
| Community First Bank | Menahga | Minnesota |
| Community First Bank | Boscobel | Wisconsin |
| Community First Bank of Indiana | Kokomo | Indiana |
| Community First Bank of the Heartland | Mount Vernon | Illinois |
| Community Spirit Bank | Red Bay | Alabama |
| Community Unity Bank | Birmingham | Michigan |
| Community Valley Bank | El Centro | California |
| Consumers Cooperative Credit Union | Gurnee | Illinois |
| Consumers National Bank | Minerva | Ohio |
| Conway Bank | Conway Springs | Kansas |
| Cornerstone National Bank & Trust Company | Palatine | Illinois |
| Corporate America Credit Union | Irondale | Alabama |
| Corporate One Federal Credit Union | Columbus | Ohio |
| Crane Credit Union | Odon | Indiana |
| Cross Keys Bank | St. Joseph | Louisiana |
| Cross River Bank | Teaneck | New Jersey |
| Crossroads Bank | Effingham | Illinois |
| CSE Federal Credit Union | Sulphur | Louisiana |
| Cumberland Security Bank | Eubank | Kentucky |
| Cypress Bank & Trust | Melbourne | Florida |
| Dart Bank | Mason | Michigan |
| DATCU | Denton | Texas |
| Dean Bank | Franklin | Massachusetts |
| Decatur County Bank | Decaturville | Tennessee |
| Dedicated Community Bank | Darlington | South Carolina |
| Denison State Bank | Holton | Kansas |
| Dolores State Bank | Dolores | Colorado |
| EasCorp | Burlington | Massachusetts |
| Elevations Credit Union | Boulder | Colorado |
| Empire State Bank | Newburgh | New York |
| Enterprise Bank | Allison Park | Pennsylvania |
| EntreBank | Bloomington | Minnesota |
| Evergreen National Bank | Evergreen | Colorado |
| Exchange Bank of Alabama | Attalla | Alabama |
| F&C Bank | Holden | Missouri |
| Fairfield National Bank | Fairfield | Illinois |
| Farmers & Merchants Bank | Boswell | Indiana |
| Farmers & Merchants Bank | Saint Clair | Missouri |
| Farmers & Merchants Bank of North Dakota | Tolna | North Dakota |
| Farmers & Merchants State Bank | Bushnell | Illlinois |
| Farmers Trust & Savings Bank | Magnolia | Arkansas |
| Farmers Bank & Trust Company | Marion | Kentucky |
| Farmers Bank & Trust Company | Princeton | Kentucky |
| Farmers National Bank | Lebanon | Kentucky |
| Farmers State Bank | Galva | Kansas |
| Farmers State Bank of Alto Pass | Harrisburg | Illinois |
| Farmers State Bank of Calhan | Calhan | Colorado |
| Farmers Trust & Savings Bank | Buffalo Center | Iowa |
| Farmers Trust & Savings Bank | Spencer | Iowa |
| FBT Bank | Fordyce | Arkansas |
| FCN Bank NA | Brookville | Indiana |
| FCNB Bank | Steelville | Missouri |
| FFB Bank | Fresno | California |
| First & Farmers National Bank, Inc. | Somerset | Kentucky |
| First American Bank & Trust | Athens | Georgia |
| First Bank | Clewiston | Florida |
| First Bank | Carmi | Illinois |
| First Bank | Weatherford | Texas |
| First Bethany Bank & Trust | Bethany | Oklahoma |
| First Business Bank | Madison | Wisconsin |
| First Citizens State Bank | Whitewater | Wisconsin |
| First Community Bank | Bluefield | Virginia |
| First Community Bank of the Heartland | Clinton | Kentucky |
| First Community Bank of Hillsboro | Hillsboro | Illinois |
| First Community Credit Union | Coquille | Oregon |
| First Federal Bank | Tuscaloosa | Alabama |
| First Federal Bank & Trust | Sheridan | Wyoming |
| First Fidelity Bank | Oklahoma City | Oklahoma |
| First Financial Bank | Abilene | Texas |
| First Internet Bank of Indiana | Indianapolis | Indiana |
| First Kentucky Bank | Mayfield | Kentucky |
| First National Bank | Damariscotta | Maine |
| First National Bank | Williamson | West Virgnia |
| First National Bank & Trust | Okmulgee | Oklahoma |
| First National Bank & Trust Co. of McAlester | McAlester | Oklahoma |
| First National Bank at St. James | St. James | Minnesota |
| First National Bank Colorado | Las Animas | Colorado |
| First National Bank Cooper | Cooper | Texas |
| First National Bank in Fredonia | Fredonia | Kansas |
| First National Bank North | Walker | Minnesota |
| First National Bank of Brooksville | Brooksville | Kentucky |
| First National Bank of Hereford | Hereford | Texas |
| First National Bank of Kentucky | Carrollton | Kentucky |
| First National Bank of Stanton | Stanton | Texas |
| First Pioneers FCU | Lafayette | Louisiana |
| First PREMIER Bank | Sioux Falls | South Dakota |
| First Seacoast Bank | Dover | New Hampshire |
| First Security State Bank | Cranfills Gap | Texas |
| First Security Trust and Savings Bank | Elmwood Park | Illinois |
| First Southern National Bank | Stanford | Kentucky |
| First Southern State Bank | Stevenson | Alabama |
| First State Bank | Buxton | North Dakota |
| First State Bank | Ben Wheeler | Texas |
| First State Bank | Gainesville | Texas |
| First State Bank | Graham | Texas |
| First State Bank | Spearman | Texas |
| First State Bank & Trust Company, Inc. | Caruthersville | Missouri |
| First State Bank Nebraska | Lincoln | Nebraska |
| First State Bank of Beecher City | Beecher City | Illinois |
| First State Bank of Dongola | Dongola | Illinois |
| First State Bank of Porter | Porter | Indiana |
| First State Bank of the Florida Keys | Key West | Florida |
| First State Bank of Wyoming | Wyoming | Minnesota |
| First Trust and Savings Bank | Wheatland | Iowa |
| First United Bank and Trust Company | Madisonville | Kentucky |
| First Western Bank & Trust | Minot | North Dakota |
| Fisher National Bank | Fisher | Illinois |
| Five Points Bank of Hastings | Hastings | Nebraska |
| Five Star Bank | Roseville | California |
| Five Star Credit Union | Dothan | Alabama |
| Flagship Bank | Oldsmar | Florida |
| Flatwater Bank | Gothenburg | Nebraska |
| Flint Community Bank | Albany | Georgia |
| FM Bank | Breaux Bridge | Louisiana |
| FNB Bank | Mayfield | Kentucky |
| FNB Bank | Romney | West Virginia |
| FNB Community Bank | Midwest City | Oklahoma |
| Fort Davis State Bank | Fort Davis | Texas |
| Fort Worth City Credit Union | Fort Worth | Texas |
| Fortifi Bank | Berlin | Wisconsin |
| Forward Bank | Marshfield | Wisconsin |
| Founders Bank | Washington | D.C. |
| Four Corners Community Bank | Farmington | New Mexico |
| Fourth Capital Bank | Nashville | Tennessee |
| Franklin Bank & Trust Company | Franklin | Kentucky |
| Franklin Savings Bank | Farmington | Maine |
| FRB Federal Credit Union | Washington | D.C. |
| Fredonia Valley Bank | Fredonia | Kentucky |
| Freedom Bank | Belington | West Virginia |
| Frontier Bank of Texas | Elgin | Texas |
| Georgia United Credit Union | Duluth | Georgia |
| Glenwood State Bank | Glenwood | Minnesota |
| Global Innovations Bank | Kiester | Minnesota |
| Goldenwest Credit Union | Ogden | Utah |
| Goodfield State Bank | Goodfield | Illinois |
| Goppert Financial Bank | Lathrop | Missouri |
| Goppert State Service Bank | Garnett | Kansas |
| Granite Bank | Cold Spring | Minnesota |
| Great Plains Federal Credit Union | Joplin | Missouri |
| Great Rivers Bank | Barry | Illinois |
| GreenState Credit Union | North Liberty | Iowa |
| Grundy Bank | Morris | Illinois |
| Gulf Coast Bank & Trust | New Orleans | Louisiana |
| Gulf Coast Business Bank | Fort Myers | Florida |
| HawaiiUSA Federal Credit Union | Honolulu | Hawaii |
| Hawthorn Bank | Jefferson City | Missouri |
| Heartland Bank | Whitehall | Ohio |
| Henderson State Bank | Henderson | Nebraska |
| Heritage Bank | Erlanger | Kentucky |
| Heritage Bank & Trust | Columbia | Tennessee |
| Heritage Bank, NA | Spicer | Minnesota |
| Heritage South Credit Union | Sylacauga | Alabama |
| High Plains Bank | Flagler | Colorado |
| Home Bank, SB | Martinsville | Indiana |
| Home Federal Savings & Loan | Grand Island | Nebraska |
| HomeBank | Palmyra | Missouri |
| Homebank Texas | Seagoville | Texas |
| Hometown Bank | Corbin | Kentucky |
| Hometown National Bank | La Salle | Illinois |
| Horizon Bank | Austin | Texas |
| INB | Springfield | Illinois |
| IncredibleBank | Wausau | Wisconsin |
| Indiana Members Credit Union | Indianapolis | Indiana |
| Indiana University Credit Union | Bloomington | Indiana |
| Industrial Credit Union | Bellingham | Washington |
| InFirst Bank | Indiana | Pennsylvania |
| InsBank | Nashville | Tennessee |
| INSOUTH Bank | Brownsville | Tennessee |
| Institution for Savings | Newburyport | Massachusetts |
| Integrity Bank & Trust | Monument | Colorado |
| InTouch Credit Union | Plano | Texas |
| INTRUST Bank National Association | Wichita | Kansas |
| Inwood National Bank | Dallas | Texas |
| Iowa State Bank | Clarksville | Iowa |
| Iroquois Federal | Watseka | Illinois |
| Jacksboro National Bank | Jacksboro | Texas |
| Jackson County Bank | McKee | Kentucky |
| Jarrettsville Federal Savings and Loan Association | Jarrettsville | Maryland |
| JD Bank | Jennings | Louisiana |
| Jones Bank | Seward | Nebraska |
| Jonestown Bank & Trust Co. | Cleona | Pennsylvania |
| JPMorgan Chase | New York | New York |
| Kimberly Clark Credit Union | Memphis | Tennessee |
| Kinecta Federal Credit Union | Manhattan Beach | California |
| Kish Bank | Belleville | Pennsylvania |
| La Salle State Bank | La Salle | Illinois |
| Lake Ridge Bank | Cross Plains | Wisconsin |
| Lakeview Bank | Lakeville | Minnesota |
| Lea County State Bank | Hobbs | New Mexico |
| Legence Bank | Eldorado | Illinois |
| LGE Community Credit Union | Atlanta | Georgia |
| LNB Community Bank | Lynnville | Indiana |
| Lone Star Capital Bank, N.A. | San Antonio | Texas |
| Lowry State Bank | Lowry | Minnesota |
| M&F Bank | Durham | North Carolina |
| MA Bank | Macon | Missouri |
| Main Bank | Albuquerque | New Mexico |
| Maine Community Bank | Biddeford | Maine |
| Malaga Bank | Palos Verdes Estates | California |
| Manasquan Bank | Wall Township | New Jersey |
| MAX Credit Union | Montgomery | Alabama |
| McCoy Federal Credit Union | Orlando | Florida |
| MCNB Bank and Trust Co. | Welch | West Virginia |
| Mediapolis Savings Bank | Mediapolis | Iowa |
| Members 1st Federal Credit Union | Enola | Pennsylvania |
| Mercantile Bank | Grand Rapids | Michigan |
| Merchants & Farmers Bank of Greene County | Eutaw | Alabama |
| Merchants Bank of Indiana | Carmel | Indiana |
| Meredith Village Savings Bank | Meredith | New Hampshire |
| Meriwest Credit Union | San Jose | California |
| Merrimack County Savings Bank | Concord | New Hampshire |
| Metamora State Bank | Metamora | Ohio |
| Metro Bank | Pell City | Alabama |
| MidAmerica National Bank | Canton | Illinois |
| Middlesex Savings Bank | Natick | Massachusetts |
| Mid-Southern Savings Bank, FSB | Salem | Indiana |
| Midwest National Bank | Sandoval | Illinois |
| MidWestOne Bank | Iowa City | Iowa |
| Minnesota National Bank | Sauk Centre | Minnesota |
| MNB Bank | McCook | Nebraska |
| Monticello Banking Company | Monticello | Kentucky |
| Moody National Bank | Galveston | Texas |
| Morgantown Bank & Trust Company Inc. | Morgantown | Kentucky |
| Mountain America Credit Union | West Jordan | Utah |
| Mountain Credit Union | Waynesville | North Carolina |
| Movement Bank | Danville | Virginia |
| MSU Federal Credit Union | East Lansing | Michigan |
| Mt. McKinley Bank | Fairbanks | Alaska |
| Murphy-Wall State Bank and Trust Company | Pinckneyville | Illinois |
| Mutual Savings Bank | Franklin | Indiana |
| My Community Credit Union | Midland | Texas |
| Neighborhood Credit Union | Dallas | Texas |
| Neighborhood National Bank | Mora | Minnesota |
| NESC Federal Credit Union | Methuen | Massachusetts |
| Nicolet National Bank | Green Bay | Wisconsin |
| North Alabama Bank | Hazel Green | Alabama |
| North American Banking Company | Roseville | Minnesota |
| North Central Bank | Hennepin | Illinois |
| North Shore Bank of Commerce | Duluth | Minnesota |
| North State Bank | Raleigh | North Carolina |
| Northeast Bank | Minneapolis | Minnesota |
| Northern Skies Federal Credit Union | Anchorage | Alaska |
| Northwest Federal Credit Union | Herndon | Virginia |
| Northfield Bank | Staten Island | New York |
| Northwestern Bank | Chippewa Falls | Wisconsin |
| Numerica Credit Union | Spokane Valley | Washington |
| Oak View National Bank | Warrenton | Virginia |
| Oklahoma’s Credit Union | Oklahoma City | Oklahoma |
| OMB Bank | Springfield | Missouri |
| One Florida Bank | Orlando | Florida |
| Partner Colorado Credit Union | Arvada | Colorado |
| Pavillion Bank | Richardson | Texas |
| Pegasus Bank | Dallas | Texas |
| People Driven Credit Union | Southfield | Michigan |
| People’s Bank | Medford | Oregon |
| Peoples Bank | Magnolia | Arkansas |
| Peoples Bank | Rock Valley | Iowa |
| Peoples Bank | Mendenhall | Mississippi |
| Peoples Bank | Clifton | Tennessee |
| Peoples Bank Mt. Washington | Mount Washington | Kentucky |
| Peoples Bank of East Tennessee | Madisonville | Tennessee |
| Peoples National Bank of Kewanee | Kewanee | Illinois |
| Peoples Savings Bank | Rhineland | Missouri |
| Peoples Trust & Savings Bank | Boonville | Indiana |
| Phenix-Girard Bank | Phenix City | Alabama |
| Pillar Bank | Baldwin | Wisconsin |
| Pima Federal Credit Union | Tucson | Arizona |
| Pine Bluff Cotton Belt FCU | Pine Bluff | Arkansas |
| Pinnacle Bank | Marshalltown | Iowa |
| Platinum Federal Credit Union | Duluth | Georgia |
| Pleasants County Bank | St. Marys | West Virginia |
| Poca Valley Bank | Walton | West Virginia |
| Points West Community Bank | Julesburg | Colorado |
| Portage Community Bank | Ravenna | Ohio |
| Preferred Bank | Rothville | Missouri |
| Premier Bank | Omaha | Nebraska |
| Princeville State Bank | Princeville | Illinois |
| Progressive National Bank | Mansfield | Louisiana |
| Range Bank | Marquette | Michigan |
| Redwood Credit Union | Santa Rosa | California |
| Republic Bank of Arizona | Phoenix | Arizona |
| River Bank & Trust | Prattville | Alabama |
| Riverfront Federal Credit Union | Wyomissing | Pennsylvania |
| Rivertrust FCU | Pearl | Mississippi |
| Robertson Banking Company | Demopolis | Alabama |
| RockPointBank | Chattanooga | Tennessee |
| Royal Banks of Missouri | University City | Missouri |
| Royal Credit Union | Eau Claire | Wisconsin |
| Rushville State Bank | Rushville | Illinois |
| Salem Five Bank | Salem | Massachusetts |
| Savings Bank of Walpole | Walpole | New Hampshire |
| Scenic Community Credit Union | Hixson | Tennessee |
| Scott State Bank | Bethany | Illinois |
| Seaport Federal Credit Union | Elizabeth | New Jersey |
| Security Bank | Springfield | Illinois |
| Security Bank of Pulaski County | St. Robert | Missouri |
| Security Federal Bank | Aiken | South Carolina |
| Security National Bank | Witt | Illinois |
| Sentry Bank | St. Joseph | Minnesota |
| Service Credit Union | Portsmouth | New Hampshire |
| Sherburne State Bank | Becker | Minnesota |
| Signature Bank of Arkansas | Fayetteville | Arkansas |
| Silver Lake Bank | Silver Lake | Kansas |
| Silver State Schools Credit Union | Las Vegas | Nevada |
| South Georgia Banking Company | Tifton | Georgia |
| South Louisiana Bank | Houma | Louisiana |
| Southern Bank of Tennessee | Mount Juliet | Tennessee |
| Southern Independent Bank | Opp | Alabama |
| Southern Michigan Bank & Trust | Coldwater | Michigan |
| SouthernTrustBank | Goreville | Illinois |
| Southwest Airlines Federal Credit Union | Dallas | Texas |
| SouthWest Bank | Odessa | Texas |
| Spectra Bank | Fort Worth | Texas |
| Star One Credit Union | Sunnyvale | California |
| State Bank Northwest | Spokane Valley | Washington |
| State Bank of Cherry | Cherry | Illinois |
| State Bank of Newburg | Newburg | Virginia |
| State Bank of Whittington | Whittington | Illinois |
| Stellar Bank | Houston | Texas |
| Stock Yards Bank & Trust | Louisville | Kentucky |
| Studio Bank | Nashville | Tennessee |
| SUMA Federal Credit Union | Yonkers | New York |
| Sunrise Banks | St. Paul | Minnesota |
| Susquehanna Community Bank | West Milton | Pennsylvania |
| T Bank | Dallas | Texas |
| Territorial Savings Bank | Honolulu | Hawaii |
| Texana Bank | Linden | Texas |
| Texas Bank and Trust Company | Longview | Texas |
| Texas First Bank | Texas City | Texas |
| Texas Heritage Bank | Boerne | Texas |
| Texas Heritage National Bank | Daingerfield | Texas |
| Texas National Bank | Sweetwater | Texas |
| Texas Republic Bank, N.A. | Frisco | Texas |
| TexasBank | Brownwood | Texas |
| The Bankers Bank | Oklahoma City | Oklahoma |
| The Callaway Bank | Fulton | Missouri |
| The Cecilian Bank | Cecilia | Kentucky |
| The Citizens Bank | Hickman | Kentucky |
| The Citizens Bank | Weston | West Virginia |
| The Claxton Bank | Claxton | Georgia |
| The Clay City Banking Company | Clay City | Illinois |
| The Colorado Bank & Trust Company | La Junta | Colorado |
| The Community Bank | Zanesville | Iowa |
| The Dime Bank | Honesdale | Pennsylvania |
| The Exchange Bank | Skiatook | Oklahoma |
| The Farmers State Bank and Trust Company | Jacksonville | Illinois |
| The First Bank & Trust Company of Murphysboro | Murphysboro | Illinois |
| The First National Bank of Bellevue | Bellevue | Ohio |
| TFNB | McGregor | Texas |
| The First National Bank of Mertzon | Mertzon | Texas |
| The First Trust and Savings Bank of Watseka | Watseka | Illinois |
| The Harvard State Bank | Harvard | Illinois |
| The HomeTown Bank of Alabama | Oneonta | Alabama |
| The Honesdale National Bank | Honesdale | Pennsylvania |
| The Iuka State Bank | Salem | Illinois |
| The State Bank | La Junta | Colorado |
| The Waterford Commercial & Savings Bank | Waterford | Ohio |
| Tompkins Community Bank | Ithaca | New York |
| Tower Community Bank | Jasper | Tennessee |
| Triad Bank | Frontenac | Missouri |
| Tri-County Bank & Trust | Roachdale | Indiana |
| Tru-Fi Credit Union | Macclenny | Florida |
| TruStone Financial | Plymouth | Minnesota |
| Tulare County Federal Credit Union | Tulare | California |
| U.S. Bank | Cincinnati | Ohio |
| U.S. Department of the Treasury’s Bureau of the Fiscal Service | Washington | D.C. |
| UBank | Jellico | Tennessee |
| UNCLE Credit Union | Livermore | California |
| Union State Bank | Clay Center | Kansas |
| United Bank of Iowa | Ida Grove | Iowa |
| United Bankers’ Bank | Bloomington | Minnesota |
| United Community Bank | Raceland | Louisiana |
| United Community Bank | Perham | Minnesota |
| United Cumberland Bank | Whitley City | Kentucky |
| United Farmers State Bank | Adams | Minnesota |
| United Federal Credit Union | St. Joseph | Michigan |
| United Nations Federal Credit Union | Long Island City | New York |
| University of Michigan Credit Union | Ann Arbor | Michigan |
| USALLIANCE Financial Federal Credit Union | Rye | New York |
| Utah First Federal Credit Union | Salt Lake City | Utah |
| Valor Bank | Edmond | Oklahoma |
| Vantage West Credit Union | Tucson | Arizona |
| Veridian Credit Union | Waterloo | Iowa |
| Viking Bank | Alexandria | Minnesota |
| Village Bank | Midlothian | Virginia |
| VISIONBank | Fargo | North Dakota |
| Visions Federal Credit Union | Endicott | New York |
| Washington State Bank | Effingham | Illinois |
| Waterfall Bank | Clearwater | Florida |
| Waterford Bank, N.A. | Toledo | Ohio |
| Wells Fargo Bank N.A. | San Francisco | California |
| Wells River Savings Bank | Wells River | Vermont |
| West Bank | West Des Moines | Iowa |
| West Plains Bank and Trust Company | West Plains | Missouri |
| West Shore Bank | Ludington | Michigan |
| West Union Bank | West Union | West Virginia |
| Western Bank | Artesia | New Mexico |
| Western Cooperative Credit Union | Williston | North Dakota |
| Westside State Bank | Halbur | Iowa |
| Whitesville State Bank | Whitesville | West Virginia |
| Williamstown Bank Inc. | Williamstown | West Virginia |
| Wilson & Muir Bank & Trust Company | Bardstown | Kentucky |
| Winter Park National Park | Winter Park | Florida |
| WNB Financial | Winona | Minnesota |
| Wolf River Community Bank | Hortonville | Wisconsin |
| Wyoming Bank and Trust | Cheyenne | Wyoming |
The Future Outlook Looks Positive
Still, with the low initial response, FedNow has received positive feedback and strong uptake as it moves from the pilot phase to regular operations. Ken Montgomery, as mentioned earlier, says he’s happy with the initial results and thanks the industry stakeholders, service providers, and financial institutions for their support.
Throughout 2024, the Federal Reserve Banks plan to continue expanding its network by utilizing their vast network of contacts with hundreds of thousands of financial institutions around the country. This viewpoint supports the idea that FedNow is ideally positioned to handle the increasing demand for same-day payments.
The Numerous “Use Cases” Of FedNow
California-based fintech Plaid has made significant use of FedNow payment solutions in a creative way. Their application demonstrates the capacity to provide immediate payouts for a range of financial transactions, including microdeposits, insurance claims, payroll, investments, and loan disbursements. Plaid’s use of FedNow particularly solves a prevalent issue by shortening micro-deposit settlement times, offering a quick and effective fix.
The Treasury Department of the Commonwealth of Virginia demonstrates how the FedNow Service has an impact outside of the business sector. During a workplace giving campaign, the Treasury Department effectively executed rapid payments to charity organizations in cooperation with its human resources agency. This example demonstrates the FedNow Service’s varied use cases and wider societal ramifications, which extend to public activities.
Promising immediate payment use cases have been identified by a number of FedNow Service participants. These consist of expedited company payments, earned wage access, fast auto purchases, and A2A transfers for personal transactions. The variety of applications offered by FedNow Service highlights its adaptability to a broad range of financial situations and requirements.
About FedNow
FedNow, the latest payment rail initiated by the Federal Reserve, facilitates swiffer bank payments for financial institutions of any size, operating seamlessly 365 days a year. Officially launched on July 20, 2023, FedNow is purposefully designed to empower financial institutions of all scales throughout the United States to offer secure and efficient instant payment services.
Through the engagement of financial institutions in the FedNow Service, businesses and individuals can send and receive instant payments in real-time, uninterrupted, every day of the year. The service empowers financial institutions and their service providers to deliver innovative instant payment solutions to customers. Recipients, in turn, gain immediate access to funds, providing enhanced financial flexibility for time-sensitive payments. FedNow is a tool to streamline customer, consumer, and employee payments, expediting B2B transactions. For consumers, the rapidity of payments, exemplified by FedNow, becomes a valuable resource for transferring funds between accounts, settling with friends and family, paying bills, and more.
Conclusion
As the FedNow Service marks its six-month milestone, the notable engagement of 500 plus institutions signifies its growing influence in reshaping the landscape of instant payments in the United States. This diverse participation, spanning banks and credit unions of varying sizes across 45 states, showcases a promising start and anticipates substantial network growth in 2024.
While major banks like Citigroup and Bank of America are behind to join, the positive response from industry stakeholders, financial institutions, and service providers highlights the potential of FedNow in becoming a crucial component of the country’s payment ecosystem. The gradual adoption and exploration of innovative use cases indicate a positive trajectory for the future of instant payments in the US.
