Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, make decisions, and take action to achieve specific goals with limited human intervention.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

FedNow

FedNow is the Federal Reserve’s instant payment service, launched in July 2023, designed to enable real-time, 24/7/365 clearing and settlement of payments between participating U.S. financial institutions. It is a core component of the nation's evolving instant payments infrastructure, offering a public-sector alternative to private networks like Real-Time Payments (RTP) from The Clearing House.

Key Features

  • Immediate Funds Availability: Payments are processed and settled within seconds, with funds available to recipients instantly—even on weekends and holidays.
  • Irrevocable Settlement: Once a payment is sent, it cannot be reversed, reducing fraud risk and improving trust.
  • Always-On Access: Institutions can offer customers uninterrupted payment capabilities, supporting modern expectations for speed and convenience.

Strategic Value for Financial Institutions

For banks and credit unions, FedNow presents a transformative opportunity to:

  • Modernize payment offerings with real-time capabilities for P2P, B2B, and G2C transactions.
  • Enhance customer experience by enabling instant bill pay, payroll, and emergency disbursements.
  • Improve liquidity management through faster settlement cycles and reduced float.
  • Expand access to instant payments for institutions of all sizes, including community banks and credit unions, thanks to its inclusive design.

Ecosystem Integration

FedNow complements other real-time payment systems like RTP, allowing institutions to choose the network(s) that best fit their operational and strategic needs. It also supports ISO 20022 messaging standards, enabling richer data exchange and future-proofing for innovation.

Read more about instant payments and their play with banks and credit unions.

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