I recently had the privilege of attending the Faster Payments Council Meeting, an event that always provides invaluable insights into the evolving landscape of financial services. I'm excited to share some of my key takeaways, particularly as they relate to our work at EPCOR and the broader industry.
The Global Perspective: U.S. vs. The World
A recurring theme was how other countries have surpassed the U.S. in faster payments adoption, even when faced with significant challenges. For example, in Indonesia, nearly a third of the population is unbanked, yet their faster payments infrastructure has flourished. This highlights that while the U.S. has a unique set of complexities—like our vast network of diverse financial institutions—these are not insurmountable obstacles. We need to learn from our international counterparts and find a way to accelerate our own progress. If you’re ready to jump into the instant payments game, our flip book has easy tips to help you avoid common pain points.
Legislation, Liquidity and Agentic Commerce
Legislation, when purposeful, can be a great thing. However, the regulatory process is often multiple years behind innovation, which can stifle progress. We must advocate for a more agile approach to regulation that can keep pace with technological change.
With the broad adoption of instant payments, there's a huge opportunity for financial institutions to manage their liquidity. This isn't a time to be in "coast mode" with your settlement account. Financial institutions need to be proactive and strategic to optimize their operations.
On a related note, the rise of agentic commerce—where AI-powered agents handle transactions autonomously—is a real thing. It's a fundamental shift in how business will be conducted, and financial institutions need to be ready to support this new paradigm.
Digital Assets and the Genius Act
As mentioned in my recent Payments Insights video, the GENIUS Act has brought digital assets like cryptocurrencies and stablecoins into the spotlight. Rather than being scared, financial institutions must become knowledgeable about the opportunities and the growing demand. The fight for deposits is intensifying as the volume of digital assets continues to grow astronomically. We can't ignore this trend without being left behind. This might mean working with other DFIs to help your account holders conduct business without losing them to outside parties.
Shaping the Future of Payments 🗣️
The Faster Payments Council has so many valuable work groups, and I am honored that EPCOR has the opportunity to represent our members in this space. This is how we advocate on your behalf and influence the future of payments. Participation in the Faster Payments Council allows us to tackle pressing issues like fraud, interoperability and financial inclusion in a collaborative and safe environment. It also allows us to bring valuable insights back to our members. By working together, we can shape the guidelines and standards that will benefit everyone in the ecosystem.