Waller Touts Possible ‘Skinny’ Master Account for Some Firms

Federal Reserve Governor Christopher Waller has expressed interest in exploring innovative approaches to payments, including the possibility of a "skinny" master account for specific institutions. This potential development aims to cater to the evolving financial landscape and the growing demand for diverse payment options. Waller highlighted the Fed's intention to be more proactive in studying ways to incorporate advancements in the payments sector. The "skinny" master account concept would provide a streamlined version of the traditional master account, potentially offering a more accessible option for certain financial institutions. By considering this alternative, the Fed seeks to address the needs of emerging players in the payments ecosystem, fostering greater innovation and competition. The details of the "skinny" master account, including eligibility criteria and operational parameters, are yet to be determined, but Waller's remarks suggest the Fed's openness to exploring innovative solutions in the payments industry.