Development of the FedNow real-time payments network is necessary, CUNA wrote to the Federal Reserve Wednesday. The Fed announced details of the 24x7x365 interbank settlement service last month.

“CUNA supports the Board’s ongoing development of FedNow, and credit unions look forward to working with Board staff as the network is developed,” the letter reads. “We encourage the Board to use all the resources at its disposal to speed up development of FedNow so that new products and services can be brought to the market.”

The first release of the FedNow Service will provide core clearing and settlement features that will support market needs and help financial institutions manage the transition to a 24x7x365 service. Additional features and service enhancements will be introduced over time.

The target launch date for the service is 2023 or 2024, and CUNA in its letter strongly encourages working toward “the earliest end of that range, while recognizing the complexity of the endeavor.

CUNA also encourages the Fed to:

• Work toward meeting the “earliest end” of the 2023 or 2024 target launch date;
• Make every effort to engage with The Clearing House to create a “roadmap for mutually beneficial coexistence;
• Ensure access to FedNow is limited to businesses that are regulated and examined. CUNA supports the Fed’s plan for nonbank access to FedNow to be through financial institutions; and
• Work closely with service providers throughout the development process to ensure they are able to develop products to help credit unions leverage FedNow.