Innovating Payments Top 3 News Headlines

Welcome to Innovating Payments Top 3 News Headlines. We launch this issue with a joint statement from Federal bank regulatory agencies on crypto-asset policy initiatives and next steps. Specifically, The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency recently conducted a series of interagency "policy sprints" focused on crypto-assets. Also in the news: A Harris Poll survey revealed more than four in five companies (84%) face payment operations problems such as slow payments, a high rate of payment failures, returns and refunds, and data quality errors, all of which results in wasted time for finance teams. Finally, according to a new study, micro-businesses care deeply about transaction efficiency, with 81% of payors believing that instant payments are essential for improving supplier relationships.

Read on to learn more.

1.  Agencies issue joint statement on crypto-asset policy initiative and next steps (federalreserve.gov)

Federal bank regulatory agencies today issued a statement summarizing their interagency "policy sprints" focused on crypto-assets and providing a roadmap of future work related to crypto-assets. In particular, the statement describes the focus of the preliminary work conducted through the sprints undertaken by the agencies. It summarizes the agencies' plan to provide greater clarity throughout 2022 on whether certain crypto-related activities conducted by banking organizations are legally permissible and related expectations for safety and soundness, consumer protection, and compliance with existing law and regulations. (Read more.)

2.  More than 4 in 5 Companies Struggle with Payment Operations, New Research from Modern Treasury Reveals (businesswire.com)

More than four in five companies (84%) face payment operations problems such as slow payments, a high rate of payment failures, returns and refunds, and data quality errors, all of which results in wasted time for finance teams, indicate the results of a first-of-its-kind survey released today by payment operations software provider, Modern Treasury. The Harris Poll survey was conducted online on behalf of Modern Treasury in August and September 2021 among 300 U.S. finance decision-makers at companies with 500 to 5000 employees. It indicates pain points exist throughout the payment operations process. Payment operations involve managing the entire money movement cycle, from initiation and approvals to reconciliation and reporting. (Read more.)

3.  81% of Payors Believe Instant Payments Are Essential for Improving Supplier Relationships (PYMNTS.com)

Microbusinesses care deeply about transaction efficiency. Deposits' timing and ease of access can be crucial to the fiscal viability of these small businesses, as even short delays in payments or income receipt can be financially devastating in a time of extended economic uncertainty. When it comes to the disbursements they receive, instant payments offer a seamless flow of funds between vendors and clients, eliminating sometimes lengthy and inconsistent waiting periods before funds clear. Instant payments also limit the possibility of administrative errors common to slower payment methods like paper checks, making it easier for microbusinesses to manage budgets and project future earnings. (Read more.)

How is your financial institution staying current with cryptocurrency developments? What is your organization doing to improve payment operations? What is your financial institution's strategy for implementing real-time payments?

Speaking of payments operations, have you downloaded our new white paper, The New Role of Operations: Exploring Channels, Talent, Innovation, Collaboration, and Risk in a Complex World? The white paper, co-authored by NEACH and The New Role of Operations Workgroup, defines the new role of operations, identifies the challenges facing operations today, highlights new opportunities in operations, and concludes with specific actions financial institutions may want to consider as they navigate the "new normal."

Finally, be sure to check back soon for our next issue, which will highlight the industry's most need-to-know developments. Until then, visit us online at Innovating Payments.