DRR Request for Information (RFI) Digital Payment Final.pdf

FDIC

Federal Deposit Insurance Corporation

Division of Resolutions & Receiverships (DRR)

Request for Information Business Operations Support Branch

THIS IS A REQUEST FOR INFORMATION ONLY. This RFI is issued solely for information and planning purposes – it does not constitute a Request for Proposal (RFP) or a promise to issue a RFP in the future. This request does not commit the Government to contract for any supply or service whatsoever. Responders are advised that the U.S. Government will not pay for any information or administrative costs incurred in response to this RFI; all costs associated with responding to this RFI will be solely at the interested party’s expense.

PLEASE DO NOT SUBMIT ANY PRICING INFORMATION.

1. Purpose The Federal Deposit Insurance Corporation (FDIC), Division of Resolutions and Receiverships (DRR), is conducting market research through the solicitation of information from firms interested in making recommendations to improve FDIC’s capabilities in the payment of insured funds to depositors as a result of an FDIC-insured financial institution failure where there is not an acquiring financial institution. In addition, the solution would be utilized for other recurring or one-time payments to claimants of the receivership, such as future dividend and unratified deposit payments.

Your organization has been identified as one that may be able to provide us with productive feedback for our planning purposes. The FDIC strongly encourages the participation of minority-owned and women-owned businesses in all the business and contracting activities of the FDIC.

2. Background The FDIC is an independent federal agency of the United States government. The FDIC was created on June 16, 1933, by the 1933 Banking Act to restore trust in the American banking system during the Great Depression.

The FDIC as receiver for failed financial institutions is responsible for providing depositors with timely access to the insured portion of their funds upon the failure of their financial institution.

When the FDIC fails to find a buyer (acquiring financial institution) for the failed financial institution, it must pay the insured portion of depositors’ funds directly to those depositors.

Currently, in those instances, the FDIC performs an insurance determination, creates a payment file, and then prints and delivers deposit insurance checks via the United States Postal Service

(USPS). The checks are made payable to the depositor and sent to the address of record with the failed institution. Checks are typically mailed within two (2) calendar days of the bank closing (that is, usually by Sunday evening) and the failed bank depositors generally receive their funds three to four days afterwards (Wednesday or Thursday following the institution’s closure on the previous Friday afternoon).

3. Current Challenges and Limitations

DATA SYSTEMS

The FDIC utilizes the Dividend Processing System (DPS) to create payments, track proven claims against the receivership and process automated journal entries to record the transactions.

CHALLENGES

In designing possible solutions, be aware of the following limitations:

• FDIC often has limited customer information available from the failed financial institution. This information generally includes: depositor name, social security or tax identification number and address and in some cases a telephone number and e-mail address.

• Failed bank depositors often do not maintain alternative bank accounts elsewhere. In many instances, there is no readily available alternate institution to transmit the funds to on the customer’s behalf. Thus, the depositor may need some time to establish a new banking relationship.

4. Business Objectives The FDIC would like to deploy alternative solutions that:

• Results in nearly instantaneous availability of insured funds upon creation of a payment file by the FDIC

• Leverages recent advances in payment systems technology

• Minimizes FDIC staff costs by utilizing a self-service website that failed financial institution customers can access to confirm balances and choose an array of alternatives as to how to receive their insured funds

• Ensures security of the deposit insurance payments as well as all depositors’ personally identifiable information

• Is scalable enough to easily handle a minimum of 500,000 individual payments, a dollar amount up to $1 million

• Complies with all applicable rules and regulations, federal and state law.

The FDIC is obligated under the Federal Information Security Modernization Act (FISMA) to adequately secure and safeguard information and information systems and manage any associated risks to operations and assets. All FDIC systems (including cloud services) are required to be formally authorized by the FDIC Authorizing Official (Chief Information Officer) prior to use.

4. Requested Information The FDIC is soliciting feedback and information to address the following items or questions:

• What payment alternatives (such as online account repository where funds can be held until new bank account with another financial institution has been established and can be transferred to that account, pre-paid debit/cash cards, etc.) are available that would assist the FDIC in their goal of instantaneous availability of insured funds upon creation of the payment?

• Are there recent advances in the payment system technology that the FDIC could leverage to enhance the current payment process?

• What payment alternatives are available to handle the payment to joint account holders?

• For the payment alternatives, discuss the timing of when payments will start to be made, given the limited customer information available.

• Where do you see electronic payment delivery headed and how should this influence

FDIC’s selection of payment alternatives?

• Discuss scalability of different payment alternatives, with at least 500,000 individual records.

• Discuss dollar limits for each solution explored.

• Feedback on contract type (fixed price, variable, cost plus, etc.), contract terms, pricing structure, economies of scale.

5. Submission Instructions of Responses All submissions related to the Request for Information are due no later than July 9, 2021, 5 pm

EST.

Responses and comments to this Request for Information shall be emailed to Benjamin Nguyen at benjnguyen@FDIC.gov, while also CC’ing Kelly Kelly at kekelly@fdic.gov in the process.

Documents measuring 8.5 by 11 inches with normal margins and a typeface no smaller than 12 point are requested. Submit your response as a PDF file not exceeding 10MB in file size. The e-mail shall be titled “(insert Company Name) - FDIC Digital Payment 2021 – Request for Information Response.”

The FDIC is not liable for any costs that might be incurred or associated with the preparation of the information provided. The FDIC reserves the right to use any and all information submitted by, or obtained from, this request for information in any manner FDIC determines is appropriate including, but not limited to, the creation of a competitive solicitation.

It is highly encouraged that concise responses are provided and contain no extraneous information (e.g., marketing material) are provided. Proprietary information and/or business confidential information, if any, should be minimized and must be clearly marked.

mailto:benjnguyen@FDIC.gov mailto:kekelly@fdic.gov