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Remarks for Payments 97 Press Conference John P. Borden President and CEO Mid-America Payment Exchange April 15, 1997 Good morning and thank you for joining us. On behalf of Mid-America Payment Exchange I am very pleased to join Mr. Hank Bourgaux of the Federal Reserve Bank of St. Louis in announcing the "Automated Payments Partnership." This partnership is a marketing alliance of the Federal Reserve Banks of Chicago, Kansas City and St. Louis and MPX. Our mutual goal is to increase the use of automated payments, specifically direct deposit and direct payment, throughout nine Midwestern states. The partnership's territory covers Arkansas, Southern illinois, Indiana, Southwestern Iowa, Kansas, Western Kentucky, Missouri, Nebraska and Oklahoma. Several aspects of this initiative are worth emphasis. First is the partnership itself. We believe that the Federal Reserve Banks involved and MPX, working together, will produce much greater results than each organization conducting its own marketing efforts. But the real significance of the partnership is that it is intended to extend far beyond our four organizations. For starters we will invite all 2000 MPX members to partner with us to expand the use of electronic payments, as well as encourage all access participants in the three districts to join the effort. Through our financial institution partners we will reach out to the companies and consumers who are key constituents of the payment system and an integral part of our effort to increase ACH transaction volume. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Borden remarks/2 The Partnership's primary goal is to see 50 million new ACH items originated in the next two years. On the direct deposit side we intend to encourage 100 new companies to offer .direct deposit .and get 200 additional companies.to aggressively market their existing direct deposit programs. And, in the area of direct payments we want to have 40 utilities participating in joint direct payment promotions and motivate 50 nonprofit organizations to offer direct payment to their contributors. Our efforts are also aimed at supporting the Treasury's EFf '99 efforts. We believe that through a genuine and active partnership we will not only realize these goal, but hope to exceed them. Also, we hope that this ushers in a new era of partnership between the Fed and ACH Associations. This initiative demonstrates a degree of Fed and private sector cooperation which is very healthy and noteworthy. While the Federal Reserve Banks and ACH Associations have always worked together, this initiative is a bit different in that it involves three different districts and focuses on marketing rather than operational activities. This is a very open partnership, we welcome other associations and Federal Reserve Banks to join us in this initiative. I am very pleased that MPX is will be an active participant in this partnership. As an ACH Association we have always been committed to providing operational, educational and marketing support to our members. This partnership represents our most significant efforts to date in the area of marketing support. The increased volume this partnership will generate will benefit all participants throughout the MPX region. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Borden remarks/3 I would like to take just a moment to acknowledge the newest members of MPX. We recently announced the merger of MPX and the Kentuckiana ACH Association. The merger becomes effective_May 1, 1997 and adds approximately. 200.financial institution members from Southern Indiana and Western Kentucky to our membership. We are pleased to have these new members as part of the MPX family and as partners in the alliance with the Fed. We look forward to working closely with the Federal Reserve Banks, our members and our members' corporate customers to enhance the use of electronic payments through the efforts of the Automated Payments Partnership. And now, I' 11 tum things over to Hank Bourgaux of the Federal Reserve Bank of St. Louis. Thank you. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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