Financial Update (October-December 2000)

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Cover Story

Financial Services Strategic Plan

Supervising FHCs

New Lending Data

DEPARTMENTS

Did You Know?

Data Bank

The Docket

Financial Services Strategic Plan

Fundamental changes, including banking consolidation and conglomeration, thriving community banks, nonbanks providing payment services, and technological advances, are reshaping the U.S. payment system. The demands of payment service users are also changing as corporations look for cost reductions, more consumers choose to use electronic payment services and the U.S. Treasury improves its infrastructure and integrates electronic payments.

The Federal Reserve Banks’ participation in the payment system is one of the three primary roles of the Fed. In this role, the Fed’s rules and principles are aimed at promoting the efficiency and integrity of the payment system and ensuring access for all depository institutions. To that end, the Reserve Banks have created a strategic plan to dramatically change the Fed’s payment system processing environment — altering the way depository institutions and other customers access services and interact with the Fed.


Because the Fed is part of the national payment system, its rules and principles are aimed at promoting the efficiency and integrity of the payment system and ensuring access for all depository institutions.

The strategic plan includes the following goals:

  • Maximize payment system benefits to the public by collaborating with stakeholders to influence the evolution of retail payments toward more electronic processes;
  • Improve the efficiency of the U.S. payment system;
  • Enhance existing products and services and develop new products to meet the needs of a changing marketplace and ensure easy, secure access to Reserve Bank payment and information services; and
  • Develop plans for the next generation of all Reserve Bank financial services.

Over the next five years, the Fed’s financial services business units will work toward achieving these goals. The result will be a consolidated and more standardized payment system that will provide easy access over open networks to customized electronic services and products and have tightly integrated transaction-based information sources available to customers.