Federal Reserve Banks Pause Fedwire® Funds Service’s Migration to ISO® 20022 Messages to Assess Industry Request
Based on a recent industry request to revisit the ISO 20022 migration strategy, the Federal Reserve Banks announced a pause in their previously announced plans for a three-phased migration to the ISO 20022 messaging standard for the Fedwire Funds Service. As a result, Phase 1 will not be implemented in November 2020. The Federal Reserve Banks will provide an update regarding their implementation plans once the assessment is complete.
Responses due November 7th
By now, you should have seen news articles regarding The Board of Governors of the Federal Reserve System’s notice and request for comment (RFC) for FedNow. Southern Financial Exchange (SFE) welcomes a chance to respond and supports the Fed’s efforts, but the RFC leaves many questions unanswered. The Fed is seeking comment and direction from the industry, hence SFE recommends that our members actively participate and provide direction. This document is intended to provide Questions and Key Considerations as well as helpful information to consider as FI’s craft their responses. Responses to the Fed are due November 7th.
The payments industry continues to evolve with improvements to network functionality and the introduction of entirely new payment rails. Trends from around the world indicate that momentum for faster payments continues to increase and expand geographically. How are financial institutions in the U.S. responding to this global trend? This study, commissioned by the Center for Payments, surveyed payments association members from across the United States to examine how financial institutions and others are planning or implementing a payments strategy and adopting new technologies, like faster payments solutions. A deeper dive into the survey responses demonstrated differences in financial institutions of various asset sizes.
Federal Reserve Announces Plan to Develop a New Round-the-Clock Real-Time Payment and Settlement Service to Support Faster Payments
The Federal Reserve Board on Monday announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States. The Board anticipates the FedNow℠ Service will be available in 2023 or 2024. They are now requesting comment on how the new service might be designed to most effectively support the full set of payment system stakeholders and the functioning of the broader U.S. payments system.
The Consumer Compliance Supervisory Highlights features articles of interest to examiners, bankers and supervisors. The purpose of this publication is to enhance transparency regarding the FDIC's consumer compliance supervisory activities and includes a high-level overview of consumer compliance issues identified during 2018 through the FDIC's supervision of state non-member banks and thrifts.
Get practical guidance on how to use the safe and reliable ACH Network to conveniently send or receive payments.
Findings to Aid Members in Preparing for Evolving Payments Landscape
The Center for Payments, a cooperative program sponsored by 11 payments associations with the purpose of helping members and staff better prepare for the continued evolution in U.S. payment systems, announced the results of its first nationwide survey.
The Playbook is designed to provide financial institutions and business end users with clarity on how to develop a faster payments strategy.
The Federal Reserve Banks have implemented a quality improvement initiative for Check Adjustments Services. The Federal Reserve Banks will charge a quality fee to depositing institutions for quality issues within work deposited with the Federal Reserve Banks. Additionally, the Federal Reserve Banks will charge a quality fee for cases submitted with incorrect or incomplete information that resulted in the prevention of automatic resolution of the request. These quality fees are designed to encourage greater efficiency through proper case submission and improved deposit practices.
SFE has provided feedback to the Federal Reserve Bank's RFC on whether the Fed should offer the following capabilities - 24x7x365 real-time interbank settlement of faster payments; other supporting features of an "RTGS settlement system"; and a liquidity management tool that would enable transfers between accounts held at the FRB. We encourage all of our members to submit your feedback. Responses are due Dec. 14, 2018.