|TO: ABA Members
FROM: Steve Kenneally
SUBJECT: Federal Reserve Payment System Task Force Initiative
The Federal Reserve plans to improve the U.S. Payment System through the formation of two task forces comprised of representatives from across the payments industry, including, but not limited to banks, payment processors, consumers, payments networks, and merchants. ABA strongly encourages bankers with an interest in payments matters to participate in this process.
The Federal Reserve is seeking input from banks of all sizes. It is important that a broad cross section of banks participate in this process.
Participants in these Task Forces will have the opportunity to help shape the future of payments. The Federal Reserve doesn’t have the authority to mandate changes to the payments system so it is forming these diverse groups of stakeholders to help gain consensus to coordinate the industry’s migration towards a better state. Of course there is no guarantee of success for the project, but this gathering of forward thinking professionals has the potential to lead to substantial changes in how we make payments in the United States. The experience of working with payments leaders from across the spectrum of the industry will provide valuable insight to you and your bank.
Each Task Force will meet in person and by telephone. The schedule has not been determined. Members are expected to attend and to contribute at each meeting. Participants will be responsible for their own travel expenses.
The Task Forces will be led by a Federal Reserve official who will be advised by a Steering Committee comprised of approximately 15 Task Force members representing the full group. Work Groups will also be formed to address specific issues. The Federal Reserve estimates Task Force members will commit approximately 40-50 hours per quarter to the effort, Steering Committee members 70-90 hours per quarter, and Work Group participants 90-120 hours per quarter.
Only one representative per financial institution can join each Task Force. That can be one individual joining both or two different individuals each serving on one Task Force.
Additional information on the Task Forces and registration information may be found through the Federal Reserve’s Payments Improvement website with the highlights summarized below.
Faster Payments Task Force
Mission: To identify and evaluate alternative approaches for implementing safe, ubiquitous, faster payments capabilities in the United States that advance the desired outcome of…”A ubiquitous, safe, faster electronic solution for making a broad variety of business and personal payments, supported by a flexible and cost-effective means for payment clearing and settlement groups to settle their positions rapidly and with finality.”
Objectives: Faster Payments Task Force Participants will represent their views on the needs of a future payment system, assess alternate approaches for faster payments, and address other issues as they arise.
Key Dates: Online registration must be complete by April 17, 2015, including the submission of the Participation Agreement. The first meeting is expected to take place on April 29, 2015.
Faster Payments Task Force Charter
Secure Payments Task Force
Mission: To provide a forum for stakeholders to advise the Federal Reserve 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 or by the Federal Reserve System that advance the desired outcome of…”U.S. payment system security that remains very strong, with public confidence that remains high, and protections and incident response that keeps pace with the rapidly evolving and expanding threat environment.”
Objectives: Secure Payments Task Force Participants will advise the Federal Reserve on payment security matters, coordinate with the Faster Payments Task Force to identify security solutions for any new payments infrastructure, and determine areas of focus and priorities to advance payment system safety, security and resiliency.
Key Dates: Online registration must be completed by May 15, 2015, including submission of the Participation Agreement. The first meeting has yet to be scheduled.
Secure Payments Task Force Charter
Additional information, including online registration links, may be found through the Federal Reserve’s Payments Improvement website.
If you register with either Task Force, please inform Steve Kenneally at ABA so that we can track participation in the effort.