Temenos has announced that Commerce Bank , a US-based bank, has implemented the FedNow service using the Temenos Payments Hub, delivered as Temenos SaaS. The integration of the FedNow Service on the Temenos platform represents a significant step in Commerce Bank’s strategy to modernise its operations, transitioning from legacy systems to a unified, cloud-native platform.

In 2022, Commerce Bank adopted the Temenos platform for its core banking operations related to deposits, and earlier in 2024, it launched a new loan origination solution for private banking customers using Temenos Digital. By utilising the Temenos platform, Commerce Bank gains business agility, enabling the integration of banking products with sophisticated delivery methods. The Temenos U.S.

Model Bank framework also supports Commerce Bank in addressing the specific business requirements of the U.S. market. With this latest implementation, Commerce Bank can now offer FedNow real-time payments through the Temenos Payments Hub.

The deployment of Temenos SaaS allows the bank to dynamically expand capacity to meet future demands on a platform capable of handling various payment types. The partnership in detail Commerce Bank, founded in 1865, is a financial institution headquartered in Kansas City, with 275 branches serving key markets across the US. The bank has pursued technological advancements to improve its services and customer experience.

Temenos, established in 1993, is a provider of banking software headquartered in Geneva. The company offers a range of products, including the Temenos Payments Hub and Temenos SaaS, which provide secure, scalable, and continuously updated platforms for financial institutions. These solutions enable banks to deliver banking products with greater agility and meet evolving market demands.

In the current banking landscape, there is a strong push towards modernisation, with many banks transitioning from legacy systems to cloud-native platforms. This shift is driven by the need for improved efficiency, scalability, and the ability to offer real-time payment services. Commerce Bank’s adoption of the Temenos platform and the integration of the FedNow Service are part of this broader trend, positioning the bank to better serve its customers in a rapidly changing industry.

Navigating regulatory expectations Specific regulations and compliance standards related to real-time payments and digital banking have emerged as focal points for regulatory oversight. For instance, in the US, the Federal Reserve's implementation of the FedNow Service comes with regulatory expectations regarding the security, reliability, and accessibility of real-time payment systems. Banks are required to adhere to guidelines outlined by regulatory authorities to ensure the integrity of transactions and protect customer data.

Similarly, compliance with industry standards such as the PCI DSS and the Bank Secrecy Act (BSA) remains paramount for banks offering digital banking services, necessitating ongoing investments in cybersecurity infrastructure and risk management capabilities. .