Can Existing Networks Meet Future Needs?

May 29, 2003 to May 30, 2003
Federal Reserve Bank of Chicago
230 S. LaSalle St.
Chicago, IL 60604
May 29, 2003 | May 30, 2003

May 29, 2003
11:30 a.m.		Registration
12:00 p.m.		Lunch
12:30 p.m.		Welcome and Opening Remarks Gordon Werkema, First Vice President and Chief Operating Officer, Federal Reserve Bank of Chicago
12:45 p.m.		Keynote Address Keynote Carl Rutstein, Vice President and Head of Americas Payment Practice, Boston Consulting Group, Inc.
		This session will trace the evolution of payment innovations and investments. The speaker will highlight successes and failures, consider lessons learned, address how the mind-set of investors has changed since the investment boom of the 90s and discuss the investment outlook for the future. The reliance of payment innovations on existing networks and/or on the development of new networks will be discussed. Why invest in new payment capabilities? What lessons from past payment innovations are useful for the future? How will competing incentives affect the adoption of more efficient payment technologies? What will existing networks need to do to preserve their franchises?
1:15 p.m.		Break
1:30 p.m.		Investing in Payments Moderator Carl Rutstein, Vice President and Head of Americas Payment Practice, Boston Consulting Group, Inc. Collin Roche, Principal, GTCR Golder Rauner, LLC John Perry, Chief Executive Officer, Intercept Payment Solutions and former Chief Executive Officer, Spectrum EBP Nick Alex, Senior Vice President, Bank of America Corporation David Roberts, Senior Vice President, First Data Corporation
		This panel will explore the dynamics and underlying decision-making process for payment investments. The unique opportunities and risks associated with these investments will also be addressed. What are the critical ingredients of a successful payment innovation? What role does venture capital play in the development of payment innovations? How are economies of scale and scope leveraged to promote new payment innovations? When are joint ventures effective in developing and implementing payment innovations?
3:30 p.m.		Break
4:00 p.m.		End Users' Perspective Moderator Peter Burns, Vice President, Federal Reserve Bank of Philadelphia Jay DeWitt, Senior Manager, Amazon.com, Inc. Paul Kapioski, Owner, West Seattle Thriftway Gail Hillebrand, Senior Attorney, Consumers' Union Cathy Gregg, Partner and Director, Treasury Strategies, Inc.
		This panel will discuss the costs and benefits of using different payment methods. The conflicting incentives among consumers and firms will be addressed. How do payment strategies fit into firms' overall business strategies? What are the major payments issues firms and consumers face today? Are the payment needs of firms and consumers being met? Are incentives aligned properly to move consumers to more efficient payment methods?
5:30 p.m.		Reception
May 30, 2003
7:30 a.m.		Continental Breakfast
8:15 a.m.		The Federal Reserve and Payment Systems: Development and Directions Gary Stern, President and Chief Executive Officer, Federal Reserve Bank of Minneapolis
8:45 a.m.		Leveraging the Payment Infrastructure Moderator Jennifer Kingson, Senior Editor, American Banker Bond Isaacson, Co-Chief Executive Officer, Concord EFS, Inc. Steve Abrams, Senior Vice President, MasterCard International, Inc. George Thomas, President and Chief Operating Officer, Electronic Payments Network Andy D'Amato, Senior Vice President, Certegy, Inc.
		What challenges are payment networks facing today? This panel will discuss how networks expect to evolve. How will networks meet the demands of payment providers and end users? How are innovations improving the payment process? What new market segments are networks entering (e.g., electronic conversion of checks by ACH networks, credit card networks processing debit card transactions etc.)? How will tomorrow's payment networks differ from today's?
10:15 a.m.		Break
10:30 a.m.		Results of Federal Reserve Payment System Development Committee's Study on Clearing and Settlement Jeff Marquardt, Associate Director, Board of Governors of the Federal Reserve System
		This session will discuss the implications of technological innovation for the adoption of electronic payments and the overall efficiency of the payments system. Barriers to innovation noted in the study will also be reviewed.
11:00 a.m.		Future of Payment Networks Moderator Laura Walker, Payment System Standards Coordinator, Federal Reserve e-Business Support Office Leo Van Hove, Assistant Professor of Economics, Free University of Brussels Austin Adams, Chief Information Officer and Executive Vice President, Bank One Corporation Norman Litell, Vice President, Visa U.S.A, Inc.
		Where are we headed? What will it look like? How will we get there? This panel will describe several innovative delivery mechanisms and discuss whether existing networks are equipped to support them or whether new networks must emerge. Are market incentives properly aligned to promote more efficient payment products? Are new delivery mechanisms necessary? How will networks enable the adoption of future payment products?
12:30 p.m.		Closing Remarks Sujit Chakravorti, Senior Economist, Federal Reserve Bank of Chicago