Payments are central to every bank’s business and to the economy but until recently have been “behind the scenes.” Increasingly, however, payments have moved to center stage with legislators, regulators, interest groups and new market entrants who are making decisions that impact the underlying efficiency, safety and soundness of the payments system. There are new challenges to the economic model, expansion of the role of payment systems achieve policy or law enforcement ends (AML, OFAC, payday lending), and new providers operating without the same level of regulatory oversight, and without adhering to the same standards for safety and soundness.
As traditional stewards of the payments system, banks are responding to these important issues, often through The Clearing House, which has the unique ability to convene the banks, to facilitate the development of positions and to take action. The Clearing House is engaging with regulators, conducting highly relevant research and providing credible expertise to guide the evolution of legislation, regulation, public policy and public understanding regarding payments. We’re also working with the payments industry to conceptualize and execute new ideas for payments to meet the challenges of a fast changing market.