Federal Reserve Releases Progress Report on Efforts to Improve US Payment System

Federal Reserve

On February 2, the Federal Reserve published a report titled, “Progress Report: Strategies for Improving the U.S. Payment System.” The report details “progress made and outlin[es] anticipated steps for moving forward with [the Federal Reserve’s] initiative to enhance payment system speed, efficiency, and security.” The report highlights the significance of industry collaboration among stakeholders, commenting on the creation of the Faster Payments and Secure Payments Task Forces, which are comprised of more than 500 industry members. Looking ahead, the Federal Reserve plans to continue enhancing its 2015 initiative by, among other things, (i) providing additional opportunities for stakeholders to engage in strategy efforts; (ii) publishing, in early 2017, an assessment of faster payments solution proposals brought forward by participants of the Faster Payments Task Force; (iii) developing greater end-to-end efficiency for domestic and cross-border payments by creating a “detailed plan and timeline for implementation of the ISO 20022 format for wire transfers”; and (iv) releasing operational details regarding enhancements to its payment, settlement, and risk management services.