Nonbanks are becoming increasingly prominent in payments systems around the world. What are the implications of this heightened presence for innovation, competition, and risk? This international conference brought together three principal audiences - industry participants, academics, and public authorities - for an exchange of views and thoughts. The following issues were addressed:
- What activities do banks and nonbanks perform in payments?
- How has rising nonbank participation affected product innovation and market competition in the payments industry?
- Do banks and nonbanks compete on a level playing field?
- Is the current supervisory framework over bank and nonbank payment service providers adequate to control risk?
- What role should public authorities play in overseeing retail payments in light of changing technologies and changing industrial structures?
Conference Summary
Richard J. Sullivan
Senior Economist, Federal Reserve Bank of Kansas City
Zhu Wang
Senior Economist
Federal Reserve Bank of Kansas City
External LinkRichard K. Rasdall, Jr.
First Vice President
Federal Reserve Bank of Kansas City
Session 1: Nonbank Payment Activities: An Overview
Paper
Handout
General Discussion
Authors
Simonetta Rosati
Senior Market Infrastructure Expert
European Central Bank
Stuart E. Weiner
Vice President and Director of Payments System Research
Federal Reserve Bank of Kansas City
Session 2: Innovation
Paper
Handout
General Discussion
Author
Bronwyn Hall
Professor
University of California, Berkley
Moderator
Lee Manfred
Partner
First Annapolis
Remarks
Handout
Panelists
Benjamin Ling | Remarks | Handout
Head of Google Checkout
Google
Rene Pelegero | Remarks | Handout
Senior Director of Industry Relations, Strategy and Compliance
Paypal, Inc.
Margaret Weichert | Remarks | Handout
Senior Vice President, Strategy, Innovation and Payments Executive
Bank of America
Luncheon Address: Modernizing Payments: No Pain, No Gain
Paper | General Discussion |
Gertrude Tumpel-Gugerell
Member of the Executive Board
European Central Bank
Session 3: Competition: Vertical Integration
Paper | General Discussion |
Author
Nicholas Economides
Professor
New York University
Moderator
Kenneth Posner | Remarks | Handout
Managing Director
Morgan Stanley
Panelists
Michael A. Cook | Remarks | Handout
Vice President and Assistant Treasurer
Wal-Mart Stores, Inc.
Trey Jinks | Remarks | Handout
Senior Director, Corporate Strategy and Planning
TSYS
Pamela A. Joseph | Remarks | Handout
Vice Chair
U.S. Bancorp
Session 4: Competition: Horizontal Integration
Paper | General Discussion
Author
Jean-Charles Rochet
Professor
University of Toulouse
Moderator
Ken Howes | Remarks | Handout
Director
Edgar, Dunn & Company
Panelists
B.J. Haasdijk | Remarks | Handout
Chairman
Equens
Gerard Hartsink | Remarks | Handout
Chairman
European Payments Council
David Yates | Remarks
President, Europe, Middle East, and Africa
First Data International
Session 5: Risk
Paper | Handout | General Discussion |
Author
Ross Anderson
Professor
Cambridge University
Moderator
Avivah Litan | Remarks
Vice President and Distinguished Analyst
Garnter, Inc.
Panelists
Jean Bruesewitz | Remarks
Senior Vice President
Visa U.S.A.
Roy C. DeCicco | Remarks | Handout
Senior Vice President
JPMorgan Chase
Richard Oliver | Remarks | Handout
Executive Vice President
Federal Reserve Bank of Atlanta
James Van Dyke | Remarks | Handout
President
Javelin Strategy and Research
Session 6: Central Bank Perspectives
General Discussion
Speakers
Philip Klopper | Remarks | Handout
Executive Director
De Nederlandsche Bank
Philip Lowe | Remarks
Assistant Governor
Reserve Bank of Australia
Thomas M. Hoenig | Remarks
President and Chief Executive Officer
Federal Reserve Bank of Kansas City