Nonbanks in the Payments System - Conference Papers

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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? The conference was held at the La Fonda Hotel, May 2-4, 2007, in Santa Fe, New Mexico. Preliminary papers for viewing are available below.
wednesday, may 2
Reception and Dinner
Welcome and Opening Remarks
	Thomas M. Hoenig
	President & Chief Executive Officer, Federal Reserve Bank of Kansas City
thursday, may 3
Session 1:	Nonbank Payment Activities: An Overview
Authors:	Simonetta Rosati
	Senior Market Infrastructure Expert, European Central Bank
	Stuart E. Weiner
	Vice President & Director of Payments System Research, Federal Reserve Bank of Kansas City
Paper:	Nonbanks in the Payments System: European and U.S. Perspectives
Handout:	Nonbanks in the Payments System: European and U.S. PerspectiveS
Session 2:	Innovation
Author:	Bronwyn Hall
	Professor, University of California, Berkeley
Paper:	Innovation in Nonbank Payment Systems
Moderator:	Lee Manfred
	Partner, First Annapolis
Handout:	NonBanks in the Payment System: Innovation – Commentary and Questions
Panelists:	Benjamin Ling
	Group Product Manager, Google
	Rene Pelegero
	Senior Director of Industry Relations, Strategy & Compliance, PayPal
Handout:	Innovation in Nonbank Payment Systems
	Margaret Weichert
	Senior Vice President, Payments & Strategy, Bank of America
Handout:	Payments: An Opportunity for Innovation
Luncheon Address: Modernizing Payments: No Pain, No Gain
	Gertrude Tumpel-Gugerell
	Member of the Executive Board, European Central Bank
Remarks:	ModerniZing payments: no pain, no gain
Session 3:	Competition: Vertical Integration
Author:	Nicholas Economides
	Professor, New York University
Handout:	Nonbanks in the Payments System: Vertical Integration
Moderator:	Kenneth Posner
	Managing Director, Morgan Stanley
Handout:	Representative Payment Industry Competitive Landscape
Panelists:	Michael Cook
	Vice President & Assistant Treasurer, Wal-Mart
Handout:	Nonbanks in the Payments System Competition: Vertical Integration
	Trey Jinks
	Senior Director, Corporate Strategy & Planning, TSYS
	Pam Joseph
	Vice Chair, U.S. Bancorp
Handout:	Vertical Integration
Session 4:	Competition: Horizontal Integration
Author:	Jean-Charles Rochet
	Professor, University of Toulouse
Paper:	Some Economics of Horizontal Integration in the Payments Industry
Moderator:	Ken Howes
	Director, Edgar Dunn & Company
Handout:	NonBanks In The Payments System: Innovation, Competition and Risk
Panelists:	Ben Haasdijk
	Chairman, Equens
Handout:	Consolidation & Integration
	Gerard Hartsink
	Chairman, European Payments Council
Handout:	Horizontal Integration in the Payments Industry
	David Yates
	President, First Data International EMEA
friday, may 4
Session 5:	Risk
Author:	Ross Anderson
	Professor, Cambridge University
Paper:	Closing the Phishing Hole – Fraud, Risk and Nonbanks
Handout:	Closing the Phishing Hole – Fraud, Risk and Nonbanks
Moderator:	Avivah Litan
	Vice President, Gartner Research
Handout:	Phishing Attacks Leapfrog Despite Attempts to Stop Them
Panelists:	Jean Bruesewitz
	Senior Vice President, Visa U.S.A.
	Roy DeCicco
	Senior Vice President, JPMorgan Chase
Handout:	Review and Commentary on Closing the Phishing Hole – Fraud, Risk and Nonbanks
	Richard Oliver
	Executive Vice President, Federal Reserve Bank of Atlanta
Handout:	Review and Commentary on Closing the Phishing Hole – Fraud, Risk and Nonbanks
	James Van Dyke
	President, Javelin Strategy & Research
Handout:	2007 Trends In Financial Risk & Fraud
Remarks:	What Rigorous Research Tells us about Risk in Payments and Financial Services
Session 6:	Central Bank Perspectives
Speakers:	Thomas M. Hoenig
	President & Chief Executive Officer, Federal Reserve Bank of Kansas City
	Philip Klopper
	Executive Director, De Nederlandsche Bank
Handout:	Nonbanks in the Dutch retail payments system: a central bank perspective
	Philip Lowe
	Assistant Governor, Reserve Bank of Australia
Remarks:	NONBANKS IN THE PAYMENTS SYSTEM: A CENTRAL BANK PERSPECTIVE