The Federal Reserve System announced the appointment of Federal Reserve Bank of Chicago Senior Vice President Sean Rodriguez as its Faster Payments Strategy Leader. In this role, Rodriguez will lead activities to identify effective approaches for implementing a safe, ubiquitous, faster payments capability in the United States.
Rodriguez will chair the Federal Reserve’s Faster Payments Task Force, comprised of more than 300 payment system stakeholders interested in improving the speed of authorization, clearing, settlement and notification of various types of personal and business payments. In addition to leading faster payments activities, Rodriguez will continue to oversee the Federal Reserve’s Payments Industry Relations Program.
“Sean’s leadership experience across payment operations, customer relations and industry outreach is exactly what we need to successfully advance the vision for a faster payments capability in the United States,” said Gordon Werkema, the Federal Reserve’s payments strategy director to whom Rodriguez will report. “His passion has contributed significantly to the momentum behind our initiative to date and we’re confident in his ability to carry our strategy forward in strong partnership with the industry.”
Rodriguez brings more than 30 years of experience with Federal Reserve Financial Services in operations, product development, sales and marketing. He helped establish the Federal Reserve’s Customer Relations and Support Office in 2001 and served on the Federal Reserve’s leadership team for implementing the Check 21 initiative. More recently, Rodriguez was instrumental in the design and launch of the Federal Reserve’s Payments Industry Relations Program charged with engaging a broad range of organizations in efforts to improve the U.S. payment system.
Additional information about the Federal Reserve’s Strategies for Improving the U.S. Payment System, including the Faster Payments Task Force, is available at FedPaymentsImprovement.org.
The Federal Reserve believes that the U.S. payment system is at a critical juncture in its evolution. Technology is rapidly changing many elements that support the payment process. High-speed data networks are becoming ubiquitous, computing devices are becoming more sophisticated and mobile, and information is increasingly processed in real time. These capabilities are changing the nature of commerce and end-user expectations for payment services. Meanwhile, payment security and the protection of sensitive data, which are foundational to public confidence in any payment system, are challenged by dynamic, persistent and rapidly escalating threats. Finally, an increasing number of individuals and businesses routinely transfer value across borders and demand better payment options to swiftly and efficiently do so.
Considering these developments, traditional payment services, often operating on decades-old infrastructure, have adjusted slowly to these changes, while emerging players are coming to market quickly with innovative product offerings. There is opportunity to act collectively to avoid further fragmentation of payment services in the United States that might otherwise widen the gap between U.S. payment systems and those located abroad.
Collaborative action has the potential to increase convenience, ubiquity, cost effectiveness, security and cross-border interoperability for U.S. consumers and businesses when sending and receiving payments.
Since the Federal Reserve commenced a payment system improvement initiative in 2012, industry dialogue has advanced significantly and momentum toward common goals has increased. Many payment stakeholders are now independently initiating actions to discuss payment system improvements with one another—especially the prospect of increasing end-to-end payment speed and security. Responses to the Federal Reserve’s Consultation Paper indicate broad agreement with the gaps/opportunities and desired outcomes advanced in that paper. Diverse stakeholder groups have initiated efforts to work together to achieve payment system improvements. There is more common ground and shared vision than was previously thought to exist. We believe these developments illustrate a rare confluence of factors that create favorable conditions for change. Through this Strategies to Improve the U.S. Payment System paper, the Federal Reserve calls on all stakeholders to seize this opportunity and join together to improve the payment system.
