Beyond the Myths: What’s Happening with Instant Payments?

Instant payments have officially entered the mainstream — but adoption is still uneven, and questions remain. How is FedNow performing more than a year after launch? What’s driving momentum, what’s holding institutions back, and what will it take for real-time payments to finally reach critical mass? In this episode of Banking Transformed, I’m joined by Bernadette Ksepka, Senior Vice President and Deputy Head of Product Development for the Federal Reserve’s FedNow Service. We’ll explore how instant payments are reshaping financial interactions, debunk some of the biggest myths surrounding FedNow, and examine how financial institutions — from community banks to major players — can leverage this infrastructure for competitive advantage. From new use cases and fraud prevention to the economics of real-time liquidity, this conversation offers a clear-eyed look at where the U.S. instant payments ecosystem stands today — and where it’s heading next. If your institution hasn’t yet activated “send,” this episode might just change your mind. This episode of Banking Transformed is sponsored by FedNow The FedNow Service is an instant payment infrastructure developed by the Federal Reserve that allows eligible financial institutions to provide 24x7x365 instant payment services to stay competitive and meet customer demand. The network currently has about 1,500 participating financial institutions headquartered in all 50 states. For more information visit https://explore.fednow.org/

Against the backdrop of the iconic Bonneville Salt Flats, where speed records are broken and boundaries are pushed, Colton Pond joined me to interview three visionary banking leaders who are breaking through the traditional limitations of legacy core banking systems. This unique setting perfectly mirrors the conversation's theme: the need for financial institutions to accelerate their modernization journey and adopt a modular approach to the future. In this compelling episode of Banking Transformed, Kelli Keough from SoFi, Chris Black from Thread Bank, and Raphael Reznek from Mascoma Bank share their real-world experiences transitioning from monolithic legacy systems to specialized, modular architectures. They reveal why treating deposits, lending, and wealth management as distinct domains isn't just a technical decision ... it's a competitive imperative that can make product launches 40% more efficient. Whether you're a banking executive navigating modernization challenges, a fintech professional exploring infrastructure options, or simply curious about the future of financial services, this conversation offers practical insights from leaders who've successfully transitioned from legacy to modern, API-first platforms.

What if your business banking clients could ask a question, in plain English, and get an instant, intelligent answer? No spreadsheets. No manual reports. Just the client, their data, and AI working together. It sounds like science fiction, but it's happening right now. Grasshopper Bank has become the first U.S. bank to enable customers to connect their business banking data directly to Anthropic's Claude AI assistant, and the implications are staggering. We're joined on the Banking Transformed podcast by two visionaries who made it happen: Chris Tremont, Chief Digital Officer, and Pete Chapman, CTO of Grasshopper Bank. They'll reveal how they built a secure bridge between banking and artificial intelligence, why they raced to be first, and what this means for every banking organization in America. This is the conversation where the future of banking gets written. The companies that understand this shift will thrive. Those who don't will be left behind.

The future of banking isn't coming – it's already here. And yet, a staggering 46% of retail financial institutions admit they're either early in their digital transformation journey or still in planning stages. At the heart of this inertia lies a familiar bottleneck: legacy core systems. While over 90% of banks surveyed this year say digital transformation is either a “critical” or “high” priority, less than 10% believe their current core can fully support their goals. In this episode of Banking Transformed, I’m joined by Sandeep Lalwani, Head of UST FinX, and Barry O’Connell, Managing Director, Americas for Thought Machine. Together, we examine the real-world consequences of delayed modernization – from constrained innovation to a stunted customer experience – and explore how a modular, coexistence-based core transformation can flip the script. This is the first episode in a new series, "Building the Future-Ready Bank", sponsored by UST FinX.

AI is rewriting how value is created and moved, digital assets are making finance programmable, and open banking is turning data into a competitive weapon. To become resilient, one must understand the collision between cutting-edge technology and centuries-old financial systems. How is open banking democratizing financial data? Why are some regions outpacing others in fintech innovation, while others lag behind? And what happens when AI agents start managing our money? I'm excited to welcome Ronit Ghose, Head of Future of Finance at Citi Institute and author of the groundbreaking book "Future of Money," to the Banking Transformed podcast, recorded at Money 20/20 in Riyadh, Saudi Arabia. From his unique perspective at one of the world's largest financial institutions, he has seen how technologies that seemed like science fiction a decade ago are now fundamentally transforming how money moves, how we bank, and how financial services operate across different continents. Whether you're a fintech founder, a traditional banker, or simply someone who wants to understand where money is heading in the next decade, this conversation will challenge how you think about the future of finance.

As we passed the midway point of 2025, we're witnessing a fascinating convergence: social media has become the new town square for financial decisions, mobile apps are overtaking traditional banking channels, and after years of digital self-service, Americans are seeking human financial advice at levels not seen since the 2008 crisis. Meanwhile, alternative financial options are experiencing an unexpected renaissance, and artificial intelligence stands at a critical inflection point between promise and practice. Welcome to today's episode of Banking Transformed, where we're diving deep into the seismic shifts reshaping the financial services landscape. I'm joined by Luke Allchin, Director of Research at RFI Global, who brings us groundbreaking insights from their latest MacroMonitor data tracking over 130 million US households. Luke's research reveals that 2026 won't just be another year of incremental change – it will be the year that separates digital natives from digital laggards, and where trust becomes the ultimate currency. Let's explore what financial institutions need to know to thrive in this rapidly evolving landscape.

While most financial institutions see payment processing as just a commodity service, the smartest ones are realizing it's actually their secret weapon for strengthening commercial relationships, boosting non-interest income, and building real competitive advantages in a growing market. Here's what might surprise you: banks that excel at providing merchant services not only keep their clients longer but also become essential partners in their clients' success. Conversely, those that fail to do so unintentionally push profitable business relationships right into their competitors' hands. On this episode of Banking Transformed, I sit down with Brad Oddo, CEO of Basys, a payments partner known for award-winning support, a white-label approach, and an ability to unlock revenue and relationship potential for financial institutions of all sizes. We explore why merchant services are often overlooked, how banks can transform them into a strategic growth engine, and what the future holds for payments innovation. If your bank isn’t rethinking merchant services right now, you may be missing one of the most powerful levers for growth and retention. This episode of Banking Transformed is sponsored by Basys Basys is a privately held payment processor that helps banks grow commercial relationships and revenue through best-in-class merchant services. With award-winning support, flexible revenue share programs and an industry leading 75+ Net Promotor Score, Basys empowers financial institutions to deepen client loyalty, increase non-interest income and deliver seamless, branded payment solutions that strengthen their competitive edge. basyspro.com

In today’s rapidly changing financial landscape, traditional banking is no longer enough. Customers expect more than just accounts, loans, and transactions—they want personalized, real-time value delivered seamlessly across every touchpoint in their lives. That’s where ecosystem banking comes in. In this episode of Banking Transformed, I’m joined by Mike Cook and Carson Kotnyek from Zafin to explore how banks can move beyond legacy limitations and become orchestrators of value. We’ll unpack what ecosystem banking truly means, why orchestration—not just innovation—is the new growth engine, and how financial institutions can remain relevant by delivering holistic solutions that meet customers wherever they are. If you want to understand how the future of banking is being built—not just in the branch, but in housing, health, commerce, and beyond—this conversation is your playbook. This episode of Banking Transformed is sponsored by Zafin Zafin's Loyalty Rewards capability helps banks deepen customer engagement by rewarding behaviors across the entire banking journey, not just their transactions and spends. It offers behavior-based incentives, flexible point strategies, and personalized rewards, moving beyond traditional spend-based models. With seamless integration and real-time analytics, banks can optimize loyalty programs to enhance customer lifetime value and drive sustainable growth. Visit zafin.com

In banking, every second matters. Fraud happens in milliseconds. Customers demand instant answers. And AI can only deliver value if it’s powered by live, real-time data. Yet many banks are still relying on batch reports and outdated systems, making decisions based on yesterday’s insights. The shift can’t wait. Forrester predicts that by 2025, half of all businesses will use AI-powered self-service as their primary customer touchpoint. That future won’t be possible without real-time data at the core. Banks that leverage streaming data will transform customer experiences, manage risks more efficiently, and unlock the full potential of AI. Those who don’t risk being left behind. Today, I’m joined by Gillaume Aymé, CEO of Lenses.io and a leading voice on data innovation. Together, we’ll explore why real-time data is becoming the lifeblood of modern banking, the hurdles institutions must overcome, and how to build the foundation for AI-driven success. This episode of Banking Transformed is sponsored by Lenses Lenses 6.0 is a Developer Experience designed to empower organizations to modernize applications and systems with real-time data autonomy. This is particularly crucial as AI adoption accelerates, and enterprises operate hundreds of Kafka clusters across multi-cloud environments. As the industry’s first multi-Kafka developer experience, Lenses 6.0 allows teams to access, govern and process streaming data across any combination of Apache Kafka-based streaming platforms, from a single interface. https://lenses.io/

Most banks, including potentially yours, are falling into a dangerous trap. They're announcing AI initiatives, holding innovation showcases, and talking about digital transformation, but when it comes to measurable business results, 70% have nothing to show for their investment. The winners, like JPMorgan Chase, Capital One, and a few others, aren't just lucky. They've decoded a specific approach to talent, execution, and measurement that lets them turn AI investments into strategic advantages. Meanwhile, most are wasting budgets with little to show for it beyond PowerPoint slides. Today on the Banking Transformed podcast, we're joined by Alexandra Mousavizadeh, CEO of Evident, who has just released the most comprehensive analysis of AI outcomes in banking. Her team tracked 173 AI use cases across 50 major banks, and the data reveals a stark divide emerging in our industry. Alexandra will reveal which banks are already using AI to steal retail customers, how they're measuring real ROI, and most importantly, what retail banking leaders need to do differently in the next 12 months to avoid being left behind. If you're responsible for retail banking strategy, customer acquisition, or digital transformation, the next 30 minutes could determine whether your bank thrives or merely survives the AI revolution.