Michelle W Bowman: Direction of supervision - impact of payment system innovation on community banks
Speech by Ms Michelle W Bowman, Member of the Board of Governors of the Federal Reserve System, at "Age of Advancement: The Intricacies of a Digital World" 2020 Banking Outlook Conference, sponsored by the Federal Reserve Bank of Atlanta, Atlanta, Georgia, 27 February 2020.
The views expressed in this speech are those of the speaker and not the view of the BIS.
It is a pleasure to be here today. I appreciate the invitation to speak to you as part of this year's Banking Outlook Conference at the Federal Reserve Bank of Atlanta. I think this year's theme, Age of Advancement: The Intricacies of a Digital World, captures the dynamic and evolving landscape of our country's financial system well. Advances in technology are occurring at a rapid pace and present the opportunity to make our financial system safer and more efficient for more Americans.
From faster payments to artificial intelligence, technological advancements touch nearly every aspect of our financial system and affect institutions of every type. As the first Federal Reserve governor to serve in the role designated by Congress for someone with community banking experience, I am especially interested in the impact these kinds of advancements may have on community banks. I am also committed to ensuring that as policymakers and supervisors navigate the intricacies of today's digital world, we do so in a way that considers the important role of community banks in cities and towns and rural communities across the country, and our nation's financial system more broadly. To that end, I believe the Federal Reserve is well positioned to support innovation and the future of banking in a way that ensures our nation's evolving financial system works for community banks and the customers they serve. So I would like to spend my time with you today focusing on how the Federal Reserve can achieve this objective in one specific area, that of our nation's payment system.