The American Fintech Council (AFC) has backed the Federal Reserve’s proposal to extend the operating hours of the Fedwire Funds Service and National Settlement Service (NSS).
The proposal suggests extending operating hours to 22 hours a day, seven days a week, year-round, with the aim of improving the safety and efficiency of the US payment system.
In a letter to the board of governors of the Federal Reserve System, the AFC highlighted that the current limited hours of operation increase risks for financial institutions, as settlement delays can heighten credit and liquidity concerns. By extending the operating hours, the AFC argued, institutions would have more opportunities to settle transactions in central bank money, helping to mitigate these risks.
The council also noted that other central banks around the world have already moved toward longer operating hours, and that the US should follow suit to stay competitive in the global financial system. In addition, the AFC emphasised that many of its members, which include fintech firms and banks, are already equipped to handle extended hours and the eventual shift to a 24x7x365 model, positioning them well to support further innovation in the payments space.
The letter closed by urging the Federal Reserve to act quickly on the proposal to meet growing industry demands and ensure the resilience of the US financial infrastructure.
“AFC believes it is crucial that the Federal Reserve expand the hours of operation of the Fedwire Funds Service and NSS to 22x7x365, with the further intent to move these systems to a 24x7x365 operating posture,” wrote Ian P. Moloney, SVP and head of policy and regulatory affairs in AFC’s Letter to FRB.
“We ultimately recognise the importance of moving to this operating posture as soon as possible in order to further innovation in the payments system, meet industry and consumer expectations, and ensure that the US payments system remains a core aspect of the global payments ecosystem.”