The American Bankers Association released a report for policymakers on the rapidly evolving payments marketplace. The report, developed by ABA’s Emerging Payments Advisory Group, identifies three key areas for consideration: consumer protections, payment system integrity and competitive equity.
The advisory group, made up of senior executives from community, regional and large banks, met earlier this year to address the need for government policies that promote competitive solutions and recognize the important role banks play in developing and delivering safe, convenient forms of payment.
“Banks—which developed the first credit card in 1958 and have since pioneered technologies like online banking and bill pay, mobile banking, and remote deposit capabilities—continue to push the innovation envelop to improve the banking experience for consumers and businesses,” the advisory group said.
While innovation and customer convenience remain core drivers of the payments system evolution, the report encourages policymakers to ensure that consumer protection laws apply to every part of the electronic payment process, including new nonbank participants; that all participants in the payment system maintain robust bank-like controls that protect the system’s integrity and assist in mandated government law enforcement efforts; and that participants in the market all play on a level regulatory playing field.
Members of the advisory group represent ABA’s diverse membership in terms of asset size, charter and location. The 13 banks participating in the group are:
Bank of America, Charlotte, N.C.;
Central Bancompany, Jefferson City, Mo.;
Eastern Bank, Lynn, Mass;
Fifth Third Bank, Cincinnati;
First Bethany Bank and Trust, Bethany, Okla.;
FirstMerit Bank, Akron, Ohio;
Northwest Financial Corp., Arnolds Park, Iowa;
PNC Financial Services Group, Inc, Pittsburgh;
Regions Financial, Birmingham, Ala.;
U.S. Bank, Minneapolis;
United Bank, Zebulon, Ga.;
Wells Fargo, San Francisco; and
Zions Bank, Salt Lake City.
For a copy of the report, titled “The Changing Face of the Payments System: A Policymaker’s Guide to Important Issues,” click here.