Vanity McDaniel and Jennifer Stadler provide a snapshot of how consumers pay for goods and services today and reflect on the latest technology trends in the U.S. payments system, including contactless payments, digital wallets, "buy now, pay later," instant payments, and the use of artificial intelligence. McDaniel is a senior payments business advisor at the Federal Reserve Bank of Richmond and Stadler is executive vice president of marketing and membership at PaymentsFirst, a payments industry association.

Financial institutions have approached AI with cautious optimism, developing and implementing AI-based applications for things like customer service chatbots, detecting fraud, and evaluating creditworthiness. Bank supervisors are learning how to adapt.

In 2020, some prosecutors described suspicious activity related to illicit use of pandemic relief as one of the largest frauds in U.S. history.

Prompt notification of cyber incidents helps the Federal Reserve make timely decisions related to the safety and soundness of supervised firms and the financial system.

Perhaps history can be a guide on whether central banks should issue digital currencies.

Check out the valuable highlights from the BSA Coalition’s highly regarded law enforcement webinar. Panelists discussed suspicious activity report filings on Paycheck Protection Program fraud and tips to avoid cyber fraud.