Page 10 - GS170201

News

Fed accelerates fast and remittance schemes. Joint efforts with NACHA
– The Electronic Payments Association, The
payments in 2017 Clearing House, the Business Payments Coalition
Vendor Forum Education and Promotion Work
Group and ISO 20022 Education and Promotion
Work Group are focused on implementing the
ue to changing consumer behavior and advanc- ISO 20022 Standard and educating consumers
es in mobile communications, payments ana- and vendors about resources designed to support
lysts expect real-time payments to become a same-day ACH and marketplace integration.
D reality in 2017. The Faster Payments Task Force,
led by the Federal Reserve in collaboration with private 5. Enhanced Federal Reserve services: As the
sector businesses, financial institutions and government Fed continues to identify secure, sustainable
agencies, is working toward that end. A progress report approaches to efficient, immediate payments, it
published Jan. 26, 2017, provides insights on the group's is focusing on Same Day ACH, directory services
progress standardizing and implementing real-time pay- and enhanced risk management tools. Significant
ments and automated clearing house (ACH) schemes. advances have been made in identifying obstacles
and gaps that could impede progress.
Esther George, President and Chief Executive Officer of the
Federal Reserve Bank of Kansas City, has led the payment More to come
system improvement initiatives on behalf of the Federal
Reserve. "The Fed's priority is to advance improvements The Faster Payments Task Force plans to continue to
that are in the public interest so that consumers and identify a path forward for improving payment identity
businesses alike have access to efficient, real-time and management practices and standardized definitions
highly secure payments in the United States," she said. for fraud and risk data. Additional details, including a
"Through a number of collaborative efforts, the industry is framework for risk assessment and protection of sensitive
making real progress on all fronts, and we're expecting to data, will be shared in Part Two of its progress report.
achieve a number of significant milestones in 2017."
"Protecting payment systems and transactions has become
Five key strategies a critical function for central banks, financial institutions
and technology providers as sophisticated cyber threats
The faster payments initiative originated in 2015, when have increased in size and scale throughout the world,"
the Fed published Strategies for Improving the U.S. Payment said Jerome H. Powell, Federal Reserve Board Governor
System, which detailed a multiyear plan focused on and co-chair of the Faster Payments Task Force oversight
improving speed and operational efficiencies across the committee.
financial services ecosystem. Following are five underlying
strategies designed to move the initiative forward: The Federal Reserve invites payments industry stakeholders
to join its extended payments improvement community.
1. Stakeholder engagement: This involves an "Momentum across the payments industry continues to
online stakeholder community of 4,000 members be strong, resulting in substantial progress on each of
who actively participate in research, webinars and the identified strategies for improving the U.S. payment
ongoing dialog. system," report authors wrote. "To help ensure that you

2. Effectiveness criteria: The task force established receive updates and information as it becomes available,
criteria for proposing and assessing approaches join the FedPayments Improvement Community."
to faster payments. It solicited and received 22
proposals from participants; 19 were approved for The report is available at https://fedpaymentsimprovement.org/
further review. wp-content/uploads/progress-report-january-17.pdf.

3. Payment security: The Secure Payments Task
Force was established in April 2015 to advise the Fed Payments industry
on a range of issues related to fraud management,
detection and monitoring. Their guidance and addresses ADA compliance
participation will help ensure that new payment
schemes meet and exceed compliance guidelines
and protect sensitive data. ayments analysts and consumer advocates are
urging the merchant community to conform
4. Payment efficiency: The Fed is working with with guidelines established by the Americans
the Business Payments Directory Association and P with Disabilities Act (ADA). The legislation,
Business Payments Coalition E-invoicing Work originally signed into law in 1990 and modified in 2009,
Group to improve efficiencies in invoice, payment established comprehensive guidelines for commercial

10