A local executive discusses the future of Fintech – and how his team is shaping it

Fintech experts have many predictions for the future of the industry. A recent Forbes report predicts that 2023 will witness the rise of embedded finance and blockchain technology, among other trends.

Nevertheless, there is one particular development that has caught the attention of the team Federal Reserve Bank of Chicago. The financial leader is currently focused on the wave of instant payments, which has created an exciting phase of innovation.

Patrick Adler, senior VP and head of architecture and business platforms, said the bank recognizes its status as the backbone of the US economy, which is why the team must develop products that can support this critical transformation. And so far, the organization has been successful in its efforts.

Later this year, the team will launch its newly developed 24/7 instant payment service, FedNowSM service. The product will enable businesses and individuals to send and receive payments easily, unlocking immediate access to funds.

According to Adler, this latest development opens up countless opportunities across the industry, including early payroll access and faster settlement of business invoices. Overall, this new product will not only drive progress in the instant payment space – it will also help speed up the nation’s economy.

Built In Chicago caught up with Adler to get his perspectives on the future of fintech and how the team’s new product will drive progress across the industry and the economy as a whole.

Patrick Adler

Senior VP, Head of Architecture and Business Platforms

What is a new trend in the fintech industry that you are following closely and what is driving it?

One of the biggest trends happening in the industry is the move to instant payments. This includes promoting interoperability through standards such as ISO 20022, improving risk and fraud tools to address instant value transfer and changes related to how consumers and businesses interact with instant payment services.

How will this trend affect the industry as a whole in addition to the work your team does?

As the industry transitions to new operating models that support 24/7 instant payments, organizations must change the approaches and technologies they use to ensure that payment products are safe, secure and robust and meet the needs of an increasingly digitized payment system. Building products that support world-class instant payments requires you to stay on top of the latest advances in cloud, AI, encryption technologies and more.

The Federal Reserve builds products that power the backbone of the American economy and payments system. Our goal is to ensure that these products meet the highest standards and can support the industry’s transition to instant payments through the use of innovative technology.

Our goal is to ensure that these products meet the highest standards and can support the industry’s transition to instant payments through the use of innovative technology.”

What is a recent project that your team worked on that embodies your vision for the future of fintech?

One of our most exciting recent efforts revolves around the work we are doing to develop the FedNowSM Service, a new 24/7 instant payment service that will launch later this year. As financial institutions begin to participate in this service, businesses and individuals will be able to easily send and receive instant payments, offering greater flexibility in managing money and making time-sensitive payments. Because the FedNowSM service will provide immediate access to funds, there are countless new use cases that can be enabled in collaboration with the wider industry, from early payroll access to faster settlement of business invoices, which will improve how quickly the economy moves. an entire.