Federal Reserve Financial Services (FRFS), the payments arm of the US Federal Reserve, has unveiled a new network intelligence API for its FedNow instant payments service, set to go live on 28 April for early adopters.
The tool equips financial institutions and service providers with receiver account-level data drawn from activity observed across the FedNow network, offering participants an additional layer of information when evaluating the risk profile of an outgoing payment.
Built on historical FedNow data that becomes more enriched over time, the API is designed to support two core capabilities. First, it enables earlier risk identification by allowing participants to combine their own internal data with network-wide insights to determine whether to proceed with a transaction, place it on hold, or refer it for further review. Second, it supports more informed decision-making by giving senders a clearer view of transaction risk in real time — insights that could also be used to improve customer-facing digital journeys, for example by surfacing additional warnings on higher-risk payments. Organisations that have already tested the tool reported straightforward integration and highlighted the advantages of drawing on broader behavioural patterns across the network to flag unusual activity.
The network intelligence API expands FRFS’s existing suite of FedNow risk management capabilities. The service is also in the process of exploring how to streamline the activation of Payee Name Verification — part of its FedDetect® Notification Services offering — for real-time use cases. If implemented, this would allow institutions to cross-check a payee’s name against their account details prior to a payment being processed, providing a further safeguard against authorised push-payment fraud. More broadly, FRFS offers a range of fraud and compliance controls across all its payment services, as well as a FraudClassifier℠ model aimed at helping institutions tackle the industry-wide problem of inconsistent fraud classification.
The FedNow Service was developed by the Federal Reserve Banks to extend instant payment capabilities to financial institutions of all sizes and locations, operating around the clock every day of the year. Through participating institutions, both businesses and individuals are able to send and receive instant payments at any time, with recipients gaining immediate access to their funds. The service is accessible via the Federal Reserve’s FedLine® network, which has a reach of more than 9,000 financial institutions directly or through their agents.
FedNow Service executive vice president and chief executive Nick Stanescu said, “The network intelligence API delivers instant, network-level data insights that complement participants’ existing risk management capabilities, providing more information — and confidence — before a transaction is made. This advancement reinforces our commitment to strengthening risk controls while maintaining the speed and reliability that define the FedNow Service.”
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