The Federal Reserve Bank’s report, Strategies for Improving the U.S. Payment System and industry analysts are recommending a new US payments system. They are suggesting a system modelled on the one implemented in the United Kingdom. This would have an interesting effect on the Federal Reserve, the National Automated Clearing House (NACHA), The Clearing House (TCH), and U.S. payments in general.
Many banks have begun to think of faster payments as inevitable. Given that mobile payments have become ‘real-time’, its land-based forerunner will need to catch up with it along with an estimated 20 or more countries around the globe.
Learning how decisions were made in the U.K. will help you better understanding the options faced by U.S. payments organizations, regulators, and providers. Several options will be available but which ones are best for all?
There are many masters to serve and many ‘cooks in the kitchen’; how will they all come together (or not) to decide on where faster payments are headed. The U.K. experience will illustrate the similarities and differences between the two payments environments and shed light on why the U.K. Faster Payments System (FPS) was successful.
The Federal Reserve, NACHA, the Clearing House, and the large banks will all have a position and an agenda.
Ray Graber has a deep and thorough understanding of banking, technology, and finance. His business experience includes banking technology research and consulting at TowerGroup, best practices internet security, policies, and procedures at FleetBoston Financial, wire transfer operations and product launches at Citibank and BankBoston, and treasury operations for a $325 million public company.
Mr. Graber was an adjunct professor at the Carroll School of Management at Boston College where he taught three graduate-level courses: E-Banking, the MBA Leadership Workshop, and Corporate Finance. Previously, he taught the Financial Management of Commercial Banks in the Boston College Carroll School of Management Masters of Finance Program and Working Capital Management and Cash Management at the Bentley College Graduate Business Program.
Ray holds a Bachelor of Arts degree in Mathematics and an MBA in Finance and MIS, both from Boston College.