THE IMPORTANCE OF FEDNOW FOR REGIONAL AND COMMUNITY BANKS: The Fed has said it will roll out its FedNow real-time payments network in July. The largest banks already enable real-time payments for their large customers, but FedNow could be a game changer for regional and community banks. FedNow will combine with other systems such as Zelle, the RTP, and the Clearing House to provide users with access to a new and broader payment network. The Fed has over 10,000 banks as part of its consortium, while the RTPs and Clearing Houses of the world have a few hundred. Of course, the movement to real-time payments will lead to a significant increase in the number of fraud attempts. The challenge for banks is to build systems that minimize fraud without creating too much friction for the customer. Work with the customers.