Strategies for Improving the U.S. Payment System Feb 2016 ... · U.S. Payment System Feb 2016 Progress Report W3C – Web Payments Interest Group ... • Provide Web Payments Interest
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Patrick Adler Federal Reserve Bank of Chicago
Strategies for Improving the U.S. Payment System
Feb 2016 Progress Report
W3C – Web Payments Interest Group Meeting February 22, 2016
Session Goals • Provide Web Payments Interest Group Members an update on
Federal Reserve Strategies for Improving the US Payment System
• Discuss recently published Effectiveness Criteria and how they may relate to W3C standards work specific to payments and security standards on the web
• Discuss other areas where W3C and Federal Reserve efforts may share common goals and identify opportunities to work together to improve the Payment System
1. Actively engage with stakeholders on initiatives designed to improve the U.S. payment system. 2. Identify effective approach(es) for implementing safe, ubiquitous, faster payments. 3. Reduce fraud risk and advance the safety, security and resiliency of the payment system.
4. Achieve greater end-to-end efficiency for domestic and cross-border payments.
5. Enhance Federal Reserve Bank payment, settlement and risk management services to address identified gaps.
SPEED
SECURITY EFFICIENCY
INTERNATIONAL
COLLABORATION
3
Five strategies in pursuit of five desired outcomes
Strategy 1: Stakeholder Engagement Actively engage with stakeholders on initiatives designed to
Faster Payments Task Force Steering Committee Financial Institutions
Small • Mark Keeling, The Bankers Bank • Bob Steen, Bridge Community Bank Medium • Wanda Chambers, Suncoast Credit
Union • James Reuter, FirstBank Colorado Large • Mitch Christensen, Wells Fargo & Co • Thomas Rea, U.S. Bank
Non-Bank Providers • Peter Gordon, FIS • Jordan Lampe, Dwolla • Steve Ledford, The Clearing House • Bradley Wilkes, WingCash • Ryan Zagone, Ripple Labs
End Users Government • Gary Beets, U.S. Treasury Business • John Drechny, Walmart • Edward Mundt, Hard Rock International Consumer Interest • Christina Tetreault, Consumers Union • Susan Weinstock, Pew Charitable Trusts
Other Stakeholders • Roy DeCicco, ASC X9 • Janet Estep, NACHA • Gary Stein, Consumer Financial Protection
Year One Accomplishments Faster Payments Effectiveness Criteria
• Developed and adopted with broad stakeholder support, the criteria provide a description of stakeholder needs that can be used to assess faster payments solutions and as a guide for innovation in the industry
Decision-Making Framework • Developed as a methodology for gaining task force approval of proposals and
deliverables
Glossary of Terms • Developed in partnership with the Secure Payments Task Force, the Glossary
of Terms is a set of relevant definitions that establishes a common lexicon for task force work products
U.1 Accessibility U.2 Usability U.3 Predictability U.4 Contextual Data Capability U.5 Cross-Border Functionality U.6 Multiple Use Cases
Speed (Fast) F.1 Fast Approval F.2 Fast Clearing F.3 Fast Availability of Good Funds to Payee F.4 Fast Settlement among Depository Institutions and Regulated Non-bank Account Providers F.5 Prompt visibility of payment
status
Efficiency E.1 Enables Competition E.2 Capability to enable value- added
services E.3 Implementation Timeline E.4 Payment Format Standards E.5 Comprehensiveness E.6 Scalability and Adaptability E.7 Exceptions and Investigations
Available on FedPaymentsImprovement.org, the Glossary of Terms is a set of relevant definitions that establishes a common lexicon for task force work products
Terms
Steering Committee members
Task Force members
Industry Glossaries/ Publications
Key Project Deliverables
§ Payment industry glossaries/dictionaries
§ Payment stakeholder websites
§ Academic sources § Payment industry
publications § Task Force members § Authors of key project
Mission and Objectives of the Secure Payment Task Force
Provide a forum for stakeholders to advise the Fed in its leader/catalyst and operator roles on payment security matters, and identify and promote actions that can be taken
by payment system participants collectively and/or by the Federal Reserve System.
Determine areas of focus for payment security and priorities for
Financial Institutions Small • Chris Gilbert, Bankers’ Bank of Kansas • Stephen Ranzini, University Bank Medium • Anthony Meholic, The Bancorp Large • Frank Perrelli, BNY Mellon • Glen Ulrich, U.S. Bank
Year One Accomplishments B2B Payments Electronification
Promoted the Small Business Payments Toolkit, a set of free resources intended for small businesses and banks that serve them
Tested the proof of concept for a B2B Directory, a tool that seeks to enable businesses to make more electronic payments to vendors and other payees
Explored business model and governance issues related to the future Business Payments Directory Association, which would bring the B2B Directory to production
B2B Directory Proof of Concept and Directory Association • Address issues concerning trust, governance,
security, business model, roll-out and adoption • Test electronic payment identity examples, use
cases and information flows • Establish a Directory Association to bring directory
to production
ISO 20022 Remittance Standards Education Work Group • Education and promotion of remittance standards • Tools to support moving from legacy to ISO 20022