Federal Reserve’s Membership in FPC Strengthens Industry Efforts to Advance Faster Payments

There’s strength in numbers. That’s a fact. But I’d venture to say that there is also strength in diversity. Having a representative mix of elements, equally contributing to the cause, can bolster the ultimate end product or outcome.

That’s why the FPC is thrilled to welcome the Federal Reserve as our latest founding sponsor and member. The Federal Reserve Bank system is a vital payments industry stakeholder that touches just about every American, and having the Fed’s direct and active participation in our FPC work efforts will help us inch even closer to our goal of achieving ubiquitous faster payments in the U.S. And here’s why:

• Given that the FPC was born out of the Faster Payments Tasks Force, which was convened by the Federal Reserve, their membership lends even more credibility to our work to carry forward some of the recommendations the task force members identified to modernize the U.S. payments system.

Connie Theien, senior vice president and director, payments industry relations, Federal Reserve Bank of Chicago, who will represent the Federal Reserve on the FPC and coordinate participation in FPC work groups and other engagements states, “In many ways, the Fed’s collaboration with the industry to advance faster payments has come full circle, from our work to facilitate the Faster Payments Task Force to full membership in the FPC. We have an unprecedented opportunity to work together to design the faster payments ecosystem from the ground up.”

• The Fed’s commitment to being part of the FPC also provides us the opportunity to have both private and public sector real-time settlement system operators involved in the discussions and work efforts that will support faster payments advancement. The Clearing House has been an active participant in the FPC since its launch, providing input and education as relates to its RTP® System and the value of real-time settlement/funds availability. The Fed’s participation will help enrich those discussions and provide additional perspectives specific to its FedNow℠
• Lastly, the Fed’s membership creates new educational opportunities, not only for FPC members, but the greater industry as well. With the Fed’s participation, FPC members will learn about FedNow’s operational and business plans directly from the source. In turn, members will use this information both for their own educational purposes and as a way to support the development of valuable information-rich resources for the industry.

While the FPC currently stands at 179 members strong, our true strength lies in our diversity.  According to Theien, “The FPC’s diverse membership creates a valuable forum for advancing a faster payments system that serves the needs of all stakeholders.”

While the addition of the Federal Reserve as a member adds to our representative mix of industry stakeholders, more importantly, given their role in the payments ecosystem, their commitment reinforces the priority of our mission.