Strategy
Strategy
The Federal Reserve recently unveiled a plan to help the country’s payment system become faster, safer and more efficient. It involves the collaboration of key industry players including large and small businesses, consumer groups, emerging payment firms, card networks, payment processors, and financial institutions. They will come up with suggestions for improving the payments system and then guide efforts to make those suggestions a reality. Details are outlined in “Strategies for Improving the U.S. Payment System,” created by the Federal Reserve Board and the 12 regional Reserve Banks. First Vice President Gordon Werkema was among a small group of Reserve Bank first vice presidents who played a key leadership role in this strategic effort, and the Chicago Fed’s Customer Relations and Support Office (CRSO) was instrumental in collaborating with the payments industry to seek feedback on the strategy. The CRSO will also play a key role in implementing the strategy in 2015.
Research
Research
As part of its key leadership role in the payment system, the Federal Reserve Bank of Chicago conducts policy research on broad topics related to the U.S. payment system, which consists of the Fed network and a host of private sector services. The goal is to understand how well – with so many overlapping parts and services – the payment system supports the U.S. economy, and where challenges exist. Recent research focuses on payment system governance and payment card fraud and security.
Currency
Currency
Every day Reserve Banks such as the Chicago Fed shred millions of dollars in unfit currency, issue new bills, send counterfeits to the U.S. Secret Service for investigation, and recirculate fit currency to commercial banks. This is a service to the public and the banking industry and one of the many ways the Federal Reserve helps promote a sound economy. In 2014, the Chicago Fed’s currency-processing volumes increased. In addition, significant construction work took place to create more secure and efficient currency-processing space.
Network
Network
Guided by the goals of integrity, efficiency and accessibility, the Reserve Banks operate national payment clearing and settlement services. The Federal Reserve Bank of Chicago manages the Customer Relations and Support Office (CRSO) for these services, including the electronic network called FedLine, which connects more than 10,000 depository financial institutions with essential payment and information services. Connectivity to the Fed lets depository institutions provide consumers and businesses access to services that are essential for commercial activity, as well as interbank payments that support financial markets. In 2014, the Chicago Fed continued to strengthen the overall security and resiliency of the FedLine network.
