WASHINGTON—The Federal Reserve has issued a report detailing the progress made toward improving the U.S. payments system, and outlined anticipated steps for moving forward.
The January 2015 “Strategies for Improving the U.S. Payment System” initiative resulted in the creation of two task forces comprised of more than 500 industry participants devoted to bringing about faster and more secure payments in the United States. The task forces have compiled 36 criteria that describe desired attributes of a faster payment system and can be used to assess the effectiveness of potential solutions, the Federal Reserve explained.
Other accomplishments, the Federal Reserve stated, include efforts to enhance payment system efficiency through work on standards, directories, and business-to-business payment improvements. In addition, joint efforts with industry participants recently resulted in a plan to implement the financial messaging standard ISO 20022 for U.S. wire transfer systems and advanced plans to implement widespread same-day ACH settlement.
“We have seen many of the strategies and tactics included in the plan come to life through broad, unprecedented stakeholder support,” said Esther George, president and chief executive officer of the Federal Reserve Bank of Kansas City, who is leading the initiative. “When implemented, the strategies will contribute to public confidence and the global competitiveness of the U.S. payment system.”
Federal Reserve Board Governor Jerome H. Powell, who co-chairs the initiative’s oversight committee, said the progress this past year is a consequence of the engagement and commitment of a diverse group of payment system stakeholders. “Their ongoing collaboration will be essential in creating a payment system that offers greater speed, security and efficiency,” he said.