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UK Banking at Last Moves into the 19th Century

posted by [personal profile] pmsumner at 08:16am on 03/03/2008

http://www.apacs.org.uk/08_02_27.html

APACS, the UK payments association, has today (27 February 2008) confirmed that the banking industry is on track to deliver the infrastructure that will enable a new faster payments service to be launched starting on 27th May this year. The development of this new system is a massive and complex project involving significant investment both within banks and the central infrastructure.

So, as long as everything happens on time, most customers will be able to do nearly instant inter-bank money transfers. YAY!

The banks in the initial push are: Abbey, Alliance & Leicester, Barclays, Citibank, Co-operative Bank, HBOS, HSBC, Lloyds TSB, National Australia Group, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, Royal Bank of Scotland Group

Mood:: 'happy' happy
Music:: BBC News
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There are 2 comments on this entry. (Reply.)
 

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posted by [identity profile] albatros.livejournal.com at 01:45pm on 03/03/2008
Will this mean an end to arbitrary charging for services that have a transactional cost of pennies? Probably not; I expect it to be pitched with great hype and complaint that it was very difficult and expensive to integrate (blah blah). I expect, from my non-expert yet highly suspicious position, that the new service will be charged at just below the current same-day banking rate, and other services will be made cheaper.

Other suspicious options that might emerge: making cleared funds available within 8 business hours (read 'some time during the next working day'), but charging a nominal transaction fee of 4 days' interest just above base rate. This to offset the current benefit banks enjoy sitting on parked cashflow. Given that the lending hedges and venture capital are now less viable, it's time to charge the customers for some guaranteed income.
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posted by [identity profile] phil99.livejournal.com at 11:49pm on 04/03/2008
I don't know more than what the press release said yet. I don't know how it works behind the scenes, and I am curious whether the "loss of income" from a clearing bank holding money for 3 days is going to be at all significant.

I think all we can do is wait, though I look forward to seeing this unfurl.
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