Years ago in an interview, someone asked the legendary hockey player Wayne Gretzky how he managed to score so many points over his storied career. His answer was simple: "I don't go where the puck is, I go where the puck is going to be."
That metaphor is a perfect one to use within the context of FedNow, the Federal Reserve's new instant payment infrastructure. These days, credit union members value speed and convenience in everything they do. But technology evolves fast--waiting for a trend to establish itself before you embrace it fully will only find you left behind by your savvier competitors.
Click HERE to Unleash the Power of FedNow 2023: A Game-Changer for CUs
In other words, simply keeping up with the curve in financial technology won't cut it. You must stay one step ahead. Embracing FedNow today will position you to be a front runner tomorrow, a year from now, and beyond.
By not making FedNow a top priority, you will be:
- Missing out on cutting-edge technology
- Offering less convenience than your competitors
- Outdating your security
Mistake #1: Missing out on cutting-edge technology
Seemingly instant payments are the new expectation for financial institutions. Going beyond the idea of secure, instant payments, one of the biggest advantages to your credit unions and its members has to do with how it can help handle bill payments.
Now, members can take advantage of real-time payments and pay a bill exactly when it is due. They get an instant confirmation that the payment has been received by the merchant and accepted. They don't have to wait days for that payment to be processed, which can make it difficult to manage their finances. This new-found simplicity is attractive to members, and will keep you one step ahead of your competitors.
Not only that but because the credit union has to verify that sufficient funds are in the account before the transaction even takes place, there is literally no risk of overdrawing an account or dealing with massive overdraft fees. FedNow gives your members and potential members the speed they can trust.
Mistake #2: Offering less convenience than your competitors
Another big advantage of the FedNow system is the convenience. In today's competitive financial landscape, credit unions are always trying to be faster, more convenient, and trustworthy. Get your competitive edge with FedNow with instant account-to-account transfers. Remember that all payments and transfers between two accounts that support FedNow are instant--even if they're at different financial institutions.
For members, this makes moving money from one financial institution to another easier, faster, and more convenient than ever before. Instead of letting your competitors pass you by, adopt FedNow soon to stay ahead of the curve by offering the convenience your members want.
Mistake #3: Outdating your security
Because fraud is always evolving, your security should be, too. Not only does your credit union need to have a strong commitment to security, but your members also need to be able to see that. Resisting newer, more secure technology like FedNow will make your current technology seem outdated to your members.
FedNow prioritizes the security of your credit union's information, offering top-notch anti-fraud measures. With state-of-the-art data encryption and authentication, FedNow ensures that your members' information is kept confidential and protected from fraud. By leveraging this advanced technology, you can demonstrate your commitment to safeguarding their data and preventing any unauthorized access.
Become a Front Runner with FedNow Today
We are thrilled about the potential that FedNow brings to the table. It opens up exciting possibilities for your credit union, allowing you to provide a whole new level of service and experience for your valued members. At FLEX, we are dedicated to empowering your credit union to stay at the forefront of innovation, accomplish your goals, and make a positive impact on your community. We are here to help you get FedNow. Click the button below to understand our FedNow integration timeline and how it will benefit your credit union.
