As we welcome in 2012, Mark Mullinix, Executive Vice President of the Federal Reserve System’s Cash Product Office, provides an update on the multi-year journey we embarked upon in 2009 to upgrade the technology platform and standardize operational practices for delivering FedCash Services. The Federal Reserve Banks have decided to take some additional time to understand and evaluate how these changes in technology are affecting processes and information flows for customers and cash handlers. By understanding and evaluating technology advances more broadly, we can better incorporate them in our long-term strategy.
In late 2009, the Federal Reserve Banks embarked on a multi-year journey to upgrade the technology platform and standardize operational practices for delivering FedCash Services. I’d like to take this opportunity to give you an update on this initiative and inform you about some important changes going forward.
When we embarked on this journey, we anticipated a relatively rapid deployment of a new technology platform that would require changes in the way you order and deposit cash with your local Federal Reserve Bank. A shift in strategy in favor of upgrading aspects of our internal infrastructure, coupled with continuing advances in cash handling and tracking technology, has led us to change our course at this time, and will position us to better support the new technology platform.
While we remain committed to delivering cash services more efficiently by upgrading our technology and standardizing our service levels and processes, the Federal Reserve Banks have decided to take some additional time to understand and evaluate how these changes in technology are affecting processes and information flows for customers and cash handlers. By understanding and evaluating technology advances more broadly, we can better incorporate them in our long-term strategy. This will position us to make changes that are consistent with industry practices and enable us to provide you with more effective cash handling tools. Given these changes, we are suspending efforts related to the expansion of the requirement to pre-notify incoming deposits on a nationwide basis. However, for customers that are required by their district to pre-notify, have voluntarily opted to pre-notify, or that are in the process of adopting this practice, you should continue to do so. Additionally, we are pausing deployment efforts related to barcoded bags or containers, with the exception of the New York zone where customers are still required to use the barcoded bags when they deposit currency with the Federal Reserve Bank.
Going forward, we will continue to enhance the FedLine Web® access solution and continue the migration of all FedCash customers to a security token. This enhancement will help enable us to more effectively and securely deliver our FedCash Services. In early 2012, we will begin issuing tokens to new Subscribers (and existing Subscribers who update their roles) as part of this 18 month migration to the new credential. Later in 2012, we are also planning to introduce new user roles in the FedLine Web access solution. Options to increase security controls will enable customers that pre-notify incoming deposits to restrict access to notification capabilities only, thereby preventing access to ordering capabilities. This year we will also provide depository institutions with the ability to place orders on a daily basis and eliminate the need to make special arrangements with the Federal Reserve Banks for orders placed outside of your carrier’s normal pick-up schedule. These changes are an effort to move toward greater service level consistency for cash services across Reserve Offices.
We will provide ongoing communications about all of our initiatives on the FedCash Services page. Additionally, we have provided an opportunity for key contacts to Register to receive updates on FedCash Services in order to receive important communications on a timely basis. The people who should register include operations managers, cash managers, cash operations staff and/or branch network staff responsible for cash operations.
As always, we remain committed to keeping customers informed and welcome your feedback as we move into 2012. We look forward to working with you, our customers, as we take thoughtful and measured steps to enhance cash handling practices. In the meantime, if you have any questions, please contact your local Federal Reserve Bank Cash Services representative.
Executive Vice President
Federal Reserve System Cash Product Office
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