Following recommendations by the Federal Reserve’s Faster Payments Task Force earlier this summer, the Fed today outlined its next steps for modernizing the U.S. payments system. Noting that substantial progress has already been made in several areas in collaboration with the task force and other industry stakeholders, the Fed outlined five updated strategies and nine new tactics it will pursue as it works to meet the goal of real-time payment ubiquity by 2020.
Specifically, the Fed will continue supporting efforts to implement a faster, ubiquitous and cost-effective payments capability; reduce fraud risk and ensure the safety of the payments system; achieve greater end-to-end efficiency for domestic payments through the development of industry-wide standards; reduce the time and cost of cross-border payments; and engage with stakeholders on other ways to enhance the payments system. In addition, the Fed noted that it plans to launch an effort before year-end to assess the need for it to expand its role as a service provider beyond providing settlement services.
The American Bankers Association has been highly engaged with the Federal Reserve as it works to improve the payments system. A total of 70 ABA member bankers served on the Faster Payments Task Force, including five who served on the task force’s steering committee. For more information, contact ABA’s Steve Kenneally.