What's Happening?
The Bank for International Settlements (BIS) is emphasizing the importance of operational resilience in payment systems as a critical component of modern economies. The BIS's Committee on Payments and Market Infrastructures (CPMI) has identified the safety,
efficiency, and operational resilience of payment, clearing, and settlement systems as central priorities. This focus comes as payment systems have become integral to economic activity, with consumers and businesses increasingly relying on real-time payment services. The BIS highlights that maintaining resilient payment operations is essential to support future innovation and maintain customer confidence. The rapid expansion of real-time payment services has changed customer expectations, necessitating continuous availability and robust cybersecurity measures.
Why It's Important?
The emphasis on payment resilience is crucial as digital payments underpin almost every aspect of the digital economy. Continuous payment availability is vital for operational performance, customer trust, and financial stability. As payment systems become more interconnected, the potential impact of disruptions grows, affecting consumers, businesses, and financial markets. The BIS's focus on resilience ensures that payment infrastructures can withstand and recover from operational disruptions, thereby supporting economic stability. Institutions that prioritize resilience will be better positioned to innovate and maintain customer confidence in an increasingly digital and interconnected financial landscape.
What's Next?
As the global payments landscape evolves, the BIS will continue to prioritize operational resilience, digital innovation, and the safety and efficiency of payment systems. Institutions are expected to strengthen their resilience strategies to align with regulatory expectations and support future innovation. The introduction of infrastructures like the Federal Reserve's FedNow Service reflects the shift toward continuous payment availability. Boards of financial institutions are increasingly involved in overseeing resilience strategies, ensuring they align with regulatory expectations and support operational continuity. The focus on resilience will likely lead to further advancements in cybersecurity, third-party risk management, and cloud infrastructure to support scalable and resilient payment operations.
