WASHINGTON—The Federal Reserve has outlined next steps it wants to see ahead to improve the nation's payment system.
The Fed provided refreshed strategies and nine new tactics to achieve its desired outcomes with guidance from two national task forces to make payments faster and more secure, reported NAFCU, which serves on both task forces.
The latest announcement is a follow-up to the Fed's original paper, “Strategies for Improving the U.S. Payment System,” which it released two-and-a-half years ago, now that most of those steps are nearing or have reached completion, noted NAFCU.
The five desired outcomes to improve the payment system remain increasing speed, ensuring security, achieving great efficiency, enhancing international capabilities and fostering industry collaboration. One of new tactics is to consider the Fed's role as a service provider in the payment system beyond providing settlement services, reported NAFCU.
Throughout the process, NAFCU has maintained that the financial services industry should lead the charge toward a faster, more secure payment system through innovation — not the government through dictated changes. It has also worked with the Fed and trade groups to ensure the credit union perspective on these proposals is taken into account.
NAFCU has urged the Fed to stay away from a "one size fits all" approach to the payment system's future, and emphasized that it will continue to represent the credit union industry's “best interests” in this process.