CENTRAL BANK FORUM 2010

SECOND CENTRAL BANK FORUM ON PAYMENTS SURVEYS BUENOS AIRES, MAY 25, 2010

forum2PARTICIPANTS

  • Eugenie Foster, retired from the Board of Governors of the Federal Reserve , contracted as project manager of the GPSP, forum
    (Back row)left to right: Armando Suratos, Harald Haare, Ibrahim Al-Nassar, Geoffrey Gerdes, and Scott Schuh. (Front row) left to right: Eugenie Foster, Maria Tereza Cavaco, and Sybil Baxtermoderator
  • Geoffrey Gerdes, Senior Economist – Board of Governors of the Federal Reserve System, Washington, DC, Division of Reserve Bank Operations and Payment Systems
  • Scott Schuh, Director- Consumer Payments Research Center – Federal Reserve Bank of Boston
  • Ibrahim Al-Nassar, Deputy Governor, Saudi Arabian Monetary Agency
  • Armando Suratos, Deputy Governor of Resource Management, Banko Sentral ng Pilipinas
  • Adrian Baxter, CEO of Currency Research, organizers of the Currency Conference and the International Commercial Cash Operations Seminar and VP / Executive Director of IACA
  • Sybil Baxter, Administration Officer for IACA.
  • Maria Tereza Cavaco, Economist, Payment Systems Department, Banco de Portugal
  • João Sidney de Figueiredo Filho, Head of Currency Management Department, Banco Central do Brasil
  • Harald Haare, Special Adviser, Payment Systems Department, Norges Bank
  • Helmut Stix, Research Economist, Oesterreichische Nationalbank
  • Lorna Thomas, Deputy Chief, Currency Department, Bank of Canada

Genie Foster gave an outline on progress of the GPSP to date, explaining that while the committee for payment settlement systems at the BIS performs the role for the other payments systems, they are really not involved with cash transactions so we see these meeting as an opportunity for central banks to get together to and talk about issues more pertinent to cash. We are interested in the payment systems especially in how their growth affects cash. We are looking for information on payment system use. IACA’s role in this project is to provide the international perspective. Many countries are looking at this on a national scope but agree that an international view is important, and IACA can certainly help to make the national data more comparable.

Genie Foster gave her presentation which in summary she recognized that it is challenging to do survey work on a national scale, so we just added to that degree of complexity by talking about this on an international basis. It is complex, it is resource intensive and needs a great deal of expertise, so we are well aware of the challenges but we do believe that working towards comparability would be of great use to everybody.

VIEW THE PRESENTATION.

Genie observed that during the first forum, a discussion ensued regarding the usefulness of an International Collection of Payment Terms. We have a draft available for you to look it at today. We think this has benefits as something that you can consult when you are working and also creates the opportunity for dialogue around what the means are and the ways to proceed are.

INTERNATIONAL COLLECTION OF PAYMENT SURVEY TERMS


At this time the individual presentations were made:

BANK OF PORTUGAL

Maria Tereza Cavaco thanked IACA for the invitation to join the forum and presented “Lessons Learned from Banco de Portugal’s Survey on Banks and Infrastructures”, which relates to a comprehensive study carried out by The Central Bank entitled “Retail Payment Instruments in Portugal – Costs and Benefits. Todays’ presentation was broken down into 5 sections:

  • The motivation behind the study and how the work was organized
  • The scope
  • The methodology used including the procedures used to collect and process the data
  • The main findings
  • The lessons learned

VIEW THE PRESENTATION.


BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Geoffrey Gerdes gave his presentation on “Recent U.S. Payment Trends: A discussion of the Fed Payments Studies”. He spoke about: a survey of depository institutions, banks, credit unions and thrifts; a survey of payment networks / card issuers and card processors, and a check 21 survey. He said using data collection experts who have expertise in the data collection side is extremely helpful. Geoff added that Debit Cards are the big growth area in payments in the United States and with all the new payment methods out there, there is a lot of potential for change.


FEDERAL RESERVE BANK OF BOSTON

Scott Schuh presented an “Overview of the Survey of Consumer Payment Choices Program Overview”. He told the group that the number of payment instruments available to the public is rising and that the average consumer has twice as many as in 1989. He went on to say that these consumers were adding the new technologies but not necessarily dropping the old ones. The survey of consumer payment choice (SCPC) has annual data going back to 2003 covered by 5 separate surveys.

VIEW THE PRESENTATION.


BANK OF CANADA

Lorna Thomas thanked everyone for the opportunity to meet and presented “The 2009 Methods of Payment Study Preliminary Results and Lessons Learned”. She explained that the Bank of Canada had carried out Online Questionnaires, Online Diaries, mailed paper based Questionnaires & Diaries and a Telephone Survey. Lorna concluded that:

  • Diaries are an effective way to collect data on payment instrument choices
  • Surveys based on access panels are reasonably representative and inexpensive
  • Online recording has advantages but paper-based instruments required for the “not connected”
  • A simpler diary may suffice:

VIEW THE PRESENTATION.


NORGES BANK

Harald Haare gave his presentation on “The Norwegian Cost Survey 2007”. Harald explained that the Cost survey included 3 sub surveys; one on banks, one on merchants and one on households.

Harald asked the question, why carry out such surveys? Before 1985 the Central Bank of Norway had no responsibility for the payments systems. They issued notes and controlled the cash in circulation. Since then they were given the task to promote an efficient domestic payments system. Efficiency includes cost, speed and security. Since 1995 they have conducted 4 cost surveys. First 3 were bank only surveys. Debit cards are dominant in Norway.

VIEW THE PRESENTATION.


OESTERREICHISCHE NATIONALBANK

Helmut Stix thanked everybody for the opportunity to present on the “Austrian Payment Survey Projects-Motivation, Results, Comparison with German Data and One Application, and Choosing and Using Payment Instruments, Evidence from German Microdata”. Helmut informed the meeting that Austria is a cash intensive country and there is a low usage of credit cards. They ran a one week payment diary for point of sale transactions. Cash payments represented 70% of all transactions. The comparison with German data found many similarities. There seems to be a decision between cash or non-cash that stays fairly consistent, then the choice of non-cash debit, credit, internet, or stored value is the separate decision. As found elsewhere the young are more apt to use the newer technologies than the older users.

VIEW THE PRESENTATION.


GENERAL DISCUSSION

The participants held a discussion of lessons learned.