Hot Topics in the Banking Industry

Malinda Rickel and I just returned from the annual NACHA conference. We have not attended for the last couple of years, so this one felt like it was bigger and better than any other. While the focus was certainly on Faster Payments, there were a variety of sessions to keep us busy! And you will be delighted to learn the ACH network is still alive and well and growing. In 2022, there were 30 billion ACH transactions totaling $76.7 trillion. Possibilities for ACH in the future include a new processing window that will align with close of business in Pacific time; Additional ACH distributions on weekends and Holidays that will include settlement and funds availability, and increased dollar limits on transactions. No time frames for any of those enhancements, just a peek into the future.

One of the announcements you may have seen recently is the Federal Reserve’s move to a Seven Day Accounting structure that will be effective June 12, 2023. Banks who have subscribed to the Federal Reserve Account Management Information service (AMI) may want to do some testing, but that is not necessary for others. This change is in preparation for the launch of FedNow in July of 2023. This change will not significantly impact you until you begin participating in FedNow. If you need more information on this process, there is a Resource Center on the website.

The Bankers Bank is continuing to prepare for the FedNow launch and we find there is still confusion about how this service will work and what steps your bank needs to take to participate, either at launch or later. One of the most important pieces of the puzzle is how your bank will receive/send transactions. Many core providers are developing a solution for their users. If you have interest in FedNow and have not discussed this with your core, you should start there. If you would like to discuss the product and the role that The Bankers Bank has in this project, please call.