Pub. 2 2013 Issue 6

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 26 T he banking industry has long been a leader when it comes to our nation’s payments system. More than 100 years ago, in May 1911, ABA developed in cooperation with our members a uniform system for the identification of financial institutions. This was needed to identify and route the growing number of drafts, checks and other documents as part of banks’ processing of pay- ments. The routing number helped speed up an increasingly complex payments system. It’s working today in not just identifying check processing endpoints, but also automated clearinghouse participants, electronic funds transfers and other settlement arrangements. I relate this story to demonstrate that ABA has a history of looking forward. Banks are leaders in the payments system. As payments continue to evolve, we will continue to provide thoughtful solutions, policy considerations and recommendations. Our Emerging Payments Advisory Group recently issued a report for policymakers on the rapidly evolving payments marketplace. The report, titled “The Changing Face of the Payment System: A Poli- cymaker’s Guide to Important Issues,” identifies three key areas for consideration: consumer protections, payment system integrity and competitive equity. The advisory group — representing the diversity of our industry with senior executives from community, regional and large banks — met earlier this year to address the need for government policies that promote competitive solutions and recognize the important role banks play in developing and delivering safe, convenient forms of payment. “Banks — which developed the first credit card in 1958 and have since pioneered technologies like online banking and bill pay, mobile banking, and remote deposit capabilities — continue to push the inno- vation envelop to improve the banking experience for consumers and businesses,” the advisory group said in its report. While innovation and customer convenience remain core drivers of the payments system evolution, the report encourages policymakers to ensure that: — Consumer protection laws apply to every part of the electronic payment process, including new nonbank participants; —All participants in the payment system maintain robust bank-like controls that protect the system’s integrity and assist in mandated government law enforcement efforts; and — Participants in the market all play on a level regulatory playing field. You can find the report online at aba.com/EmergingPayments. I en - courage you to review it so you can be ready advocate on these issues as they come before Congress. It is in our interest as well as policymakers’ to ensure that the laws and rules governing the payment system keep pace with the evolving marketplace. Your customers and our nation’s commerce depend on a reliable, safe and efficient payments system. And with your help, we will continue to lead in this important area. E-mail Frank Keating at keating@aba.com © 2013 American Bankers Association. All rights reserved. Reprinted with permission. Our Policymaker’s Guide to Payments System Issues By Frank Keating, President and CEO American Bankers Association