Federal Reserve Financial Services (FRFS), the payments arm of the US Federal Reserve, has unveiled a new network intelligence API for the FedNow Service, with early adopters gaining access from 28 April.
The API grants financial institutions and service providers access to receiver account-level data drawn from activity observed across the FedNow network. This gives participants an additional layer of insight to help them weigh up the risk of a transaction before it is processed. The tool draws on historical FedNow data, building richer insights over time to support real-time decision-making.
The API is designed to serve two primary functions for participants. Firstly, it supports early risk mitigation by enabling institutions to combine their own internal data with network-wide intelligence to decide whether to proceed with a payment, pause it, or route it for further review. Secondly, it facilitates more informed decision-making by equipping senders with network-level data at the point of transaction, whilst also allowing institutions to enhance their customer-facing digital experiences — for example, by surfacing additional warnings or messaging when a payment is flagged as higher risk.
Early testers of the tool have highlighted both the straightforward integration process and the value of drawing on broader behavioural patterns across the network to flag unusual activity.
The FedNow Service, developed by the Federal Reserve Banks, was created to make instant payment capabilities available to financial institutions of all sizes across the country, operating around the clock every day of the year. Businesses and individuals using the service through their participating financial institution can send and receive payments instantly, with recipients gaining immediate access to funds. The service connects to the Federal Reserve’s FedLine® network, which reaches more than 9,000 financial institutions directly or through agents.
The new API sits alongside a range of existing risk management tools offered through the FedNow Service. FRFS is also examining how to streamline the rollout of Payee Name Verification — part of its FedDetect® Notification Services suite — to address real-time requirements. This feature would allow institutions to cross-check a payee’s name against associated account details before a payment is authorised, offering another safeguard against authorised push-payment fraud. Across its broader payments infrastructure, FRFS also provides a FraudClassifier℠ model to help institutions tackle the persistent industry problem of inconsistent fraud categorisation.
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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