FTA Commends Federal Reserve System Plan to Expand Operating Hours of Fedwire Funds Service and National Settlement Service
Steps will help modernize the U.S. payment system and foster innovation, efficiency, and competition.
WASHINGTON, D.C. – The Financial Technology Association (FTA) today submitted a comment letter commending the Board of Governors of the Federal Reserve System (FRB)’s proposal to expand the operating hours of the Fedwire Funds Service (Fedwire) and the National Settlement Service (NSS) to include weekends and holidays, enabling operations every day of the year. The FRB’s proposal would significantly benefit consumers and businesses and enhance cross-border payments and financial innovation.
“We no longer live in a 9-to-5 world and expect our payment infrastructure to meet the needs of always being connected,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “Expanding Fedwire and NSS operating hours to provide access to payment services outside of the traditional work week is a positive step to match the demands of today’s digital age.”
Expanding operating days will support the safety and efficiency of the U.S. payment system and position the nation’s payment and settlement infrastructure for future needs. It will help financial institutions better support small- and medium-sized businesses, streamline operations and cash flow for merchants, enhance loan origination efficiency, and give consumers more timely access to their funds. Also, given Fedwire’s critical role in cross-border transactions, this change should benefit consumers by allowing faster settlement and enhanced transparency in global foreign exchange markets.
To maximize the modernization and innovation benefits of expanding operating windows, FTA urges policymakers to provide direct access to its payment systems for well-regulated payment companies. Innovative payment companies are leading the way in digitalization and the increased use of technology. Giving these companies direct access would promote competition and ensure that more consumers, small businesses, and entrepreneurs benefit from modern financial infrastructure. Read the Future of Finance policy agenda to learn more about FTA’s vision for payments modernization.
FTA’s full comment letter on Fedwire and NSS operating hours may be found here.
ABOUT US
The Financial Technology Association (FTA) represents industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.
FTA Commends Federal Reserve System Plan to Expand Operating Hours of Fedwire Funds Service and National Settlement Service
Steps will help modernize the U.S. payment system and foster innovation, efficiency, and competition.
WASHINGTON, D.C. – The Financial Technology Association (FTA) today submitted a comment letter commending the Board of Governors of the Federal Reserve System (FRB)’s proposal to expand the operating hours of the Fedwire Funds Service (Fedwire) and the National Settlement Service (NSS) to include weekends and holidays, enabling operations every day of the year. The FRB’s proposal would significantly benefit consumers and businesses and enhance cross-border payments and financial innovation.
“We no longer live in a 9-to-5 world and expect our payment infrastructure to meet the needs of always being connected,” said Penny Lee, President and Chief Executive Officer of the Financial Technology Association. “Expanding Fedwire and NSS operating hours to provide access to payment services outside of the traditional work week is a positive step to match the demands of today’s digital age.”
Expanding operating days will support the safety and efficiency of the U.S. payment system and position the nation’s payment and settlement infrastructure for future needs. It will help financial institutions better support small- and medium-sized businesses, streamline operations and cash flow for merchants, enhance loan origination efficiency, and give consumers more timely access to their funds. Also, given Fedwire’s critical role in cross-border transactions, this change should benefit consumers by allowing faster settlement and enhanced transparency in global foreign exchange markets.
To maximize the modernization and innovation benefits of expanding operating windows, FTA urges policymakers to provide direct access to its payment systems for well-regulated payment companies. Innovative payment companies are leading the way in digitalization and the increased use of technology. Giving these companies direct access would promote competition and ensure that more consumers, small businesses, and entrepreneurs benefit from modern financial infrastructure. Read the Future of Finance policy agenda to learn more about FTA’s vision for payments modernization.
FTA’s full comment letter on Fedwire and NSS operating hours may be found here.
ABOUT US
The Financial Technology Association (FTA) represents industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.