Pub. 11 2016-2017 Issue 2

July/August 2016 17 Extraordinary Service for Extraordinary Members. STRATEGY 4: Achieve Greater End-to-End Efficiency for Domestic and Cross-Border Payments The desired outcome associated with this strategy is focused on achieving a greater proportion of electronic pay- ments and enabling innovative payment services that deliver improved value. Although check writing will continue to decline, billions of checks are written every year and business- to-business check writing remains entrenched, especially for small businesses. In addition, a persistently large portion of the population remains unbanked or underbanked, making it difficult for those people to take advantage of low-cost elec- tronic payments. The Federal Reserve has indicated that its role in connection with this strategy will be initially limited to leader/catalyst, although it could potentially expand to a service provider role. Here, work is being done with existing industry groups rather than a new task force. Among the spe- cific topics being pursued are: (i) the Remittance Coalition’s Small Business Payments Toolkit; (ii) a proof-of-concept for a B2B directory and development of a Business Payments Di- rectory Association (to bring the directory to production); (iii) standards for business remittances; and (iv) applying the ISO 20022 standard toU.S. payment transactions (wire and ACH). STRATEGY 5: Enhance Federal Reserve Bank Payment, Settlement, and Risk-Management Services This strategy focuses on things the Federal Reserve can pursue in its role as payment service provider. The Federal Reserve indicated it would: (i) expand the operating hours and other capabilities of the National Settlement Service and accelerate interbank settlement for check payments; (ii) pro- mote greater use of same-day ACH capabilities; (iii) expand and enhance Federal Reserve international payment services; (iv) expand risk-management services for its Financial Ser- vices; and (v) provide the Reserve Banks’ financial institution customers access to interoperable, secure directory tools. Among the things it has accomplished so far are expanding the hours of its National Settlement Service, supporting the NACHA same-day ACHpayment initiative, and collaborating with FS-ISAC to distribute its community bank threat report via FedLine. For more information on how you and your bank can get involved, go to fedpaymentsimprovement.org/engage/.  Contact Bryan Handlos at Kutak Rock LLP for more information at (402) 346-6000 or bryan.handlos@kutakrock.com. Handlos is a member of Kutak Rock LLP’s banking practice group where he concentrates on bank regulatory matters.