Fed Issues Update on Faster Payments Initiative

Having convened stakeholders from across the public and private sectors and outlined criteria for effectiveness, the Federal Reserve’s “faster payments” initiative will in 2016 begin assessing proposals for improvement, begin implementing the ISO 20022 standard for wire transfers and facilitate the transition to universal same-day ACH, according to a Fed report today.

“We have seen many of the strategies and tactics included in the plan come to life through broad, unprecedented stakeholder support,” said Federal Reserve Bank of Kansas City President and CEO Esther George, who is leading the initiative. “When implemented, the strategies will contribute to public confidence and the global competitiveness of the U.S. payment system.”

ABA has taken a leadership role with the faster payments initiative. Seventy-one of the 80 bankers on the Faster Payments Task Force represent ABA member banks, as do 36 of the 46 bankers on the Fed’s Secure Payments Task Force. All 10 bankers on the two task forces’ steering committees are ABA members.