The Role of Core Banking Services Providers in Facilitating Instant Payments

Alcazar, Julian; Baird, Sam; Cronenweth, Emma; Hayashi, Fumiko; Isaacson, Ken

Briefing

The Role of Core Banking Services Providers in Facilitating Instant Payments

Abstract: Core banking services providers play key roles helping depository institutions (DIs) offer instant payments. Specifically, core providers process transactions in real time and connect DIs to instant payments system operators, upgrade customer-facing solutions, and facilitate open banking and embedded finance. As the United States implements instant payments systems, the market structure surrounding core providers may evolve, and competition between fintechs and DIs for end users may intensify.

Keywords: Depository institutions; instant payments; fintech;