Welcome to Innovating Payments' Top 3 News Headlines for the week of February 17. In this issue, The Wall Street Journal reports that the Trump administration is considering plans to fold the Federal Deposit Insurance Corp. (FDIC) into the Treasury Department. Additionally, the Federal Reserve Financial Services (FRFS) has rescheduled the implementation of the Fedwire Funds Service ISO 20022 from March 10 to July 14, 2025. Finally, FIS has partnered with buy-now-pay-later service Affirm to integrate installment payments into traditional bank debit cards.
Read on to learn more.
1. White House Weighs Folding FDIC Into Other Agencies (PYMNTS.com)
The Trump administration is reportedly considering plans to shrink one of America's banking regulation bodies. These talks propose folding the Federal Deposit Insurance Corp. (FDIC) into the Treasury Department, The Wall Street Journal reported late Tuesday (Feb. 11), citing sources familiar with the matter. In another scenario - one that the report said would be carried out without Congressional involvement - the administration would combine the FDIC's regulatory role with the Office of the Comptroller of the Currency (OCC), a division of the Treasury. (Read more.)
2. ISO® 20022 Implementation Rescheduled to July 14 for the Fedwire® Funds Service (FRBServices.org)
For the past several years, Federal Reserve Financial Services (FRFS) has worked with the industry to prepare for the implementation of the new ISO 20022 message format for the Fedwire Funds Service. The industry has made significant progress and accomplished many key milestones. However, after careful consideration of industry requests and assessment of customer readiness, FRFS has decided to reschedule the Fedwire Funds Service ISO 20022 implementation from March 10 to July 14, 2025. (Read more.)
3. Why FIS and Affirm Joined Forces on Debit Cards (FinTech Magazine)
Banks can now offer BNPL services directly through debit cards as US financial technology firms FIS and Affirm partner to challenge payment startups. FIS has formed a partnership with buy-now-pay-later service Affirm to integrate installment payments into traditional bank debit cards. The partnership marks a shift in how traditional banks approach flexible payment options as financial institutions seek ways to retain customers who increasingly use alternative payment methods. (Read more.)
What are the implications for financial institutions if the Trump Administration folds the FDIC into the Treasury Department? How is your financial institution preparing for the implementation of ISO 20022? Does the FIS/Affirm partnership signal a shift in how traditional financial institutions approach flexible payment options?
Check back soon for our next issue, highlighting the industry's most pressing and important developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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