Faster Bank Transfers Under Way In The U.k.

[marshbags]

BBC News 08:15 GMT, Tuesday, 27 May 2008 09:15 UK

Ref url :- http://news.bbc.co.uk/1/hi/business/7417303.stm

Faster bank transfers under way

The new scheme has been delayed for six months

A banking scheme for one-day cash transfers over the telephone or on the internet has started.

The scheme will speed up the process which previously saw money transferred between banks disappearing into a black hole for up to four days.

Banks made an estimated £30m in interest from the delay last year.

The £300m Faster Payments Service, developed by 13 banks, starts on 27 May, although only a fraction of payments will be quicker from day one.

Slow start

Customers can make one-off payments up to a maximum value of £10,000 over the telephone or via the internet, which will leave their account and arrive at the destination account on the same day.

Given we have been waiting for years, if not decades, for the industry to invest in decent systems, if the price of embedding it properly is a delay of a few months, then that is sensible

Philip Cullum

National Consumer Council

See the big five banks' timetable

For many consumers the frustration has been most common when money disappeared for a few days when they transferred cash from a current account to their own savings accounts with a different bank.

The same-day project will be extended to standing orders from 6 June.

In 2007, there were 124 million internet and phone payments made at an average value of £303. The number of payments is expected to rise to 300 million in 10 years.

Some 347 million standing order payments were made in 2007, expected to rise to 422 million in a decade, at an average value of £321.

The banking industry says it does not want to flood the new system from day one, and various banks will phase in the system at different times.

"Given we have been waiting for years, if not decades, for the industry to invest in decent systems, if the price of embedding it properly is a delay of a few months, then that is sensible," said Philip Cullum of the National Consumer Council.

'Complex project'

The banks have been preparing for the scheme by testing the service with hundreds of penny payments.

"The final part of this enormously complex project has been to test the new system in a live environment," said Paul Smee, chief executive of UK payments association Apacs.

"After such substantial investment by the industry we would like, in time, to see the new Faster Payments Service being used for all of the UK's internet, phone and standing order payments."

Some concerns have been raised about security under the faster scheme, with banks having less time to check payments.

But Apacs said that although no system could promise 100% security, the issue had been at the heart of developing the system.

The 13 banks included in the scheme are: Abbey, Alliance and Leicester, Barclays, Citi, Clydesdale and Yorkshire Banks (National Australia Group), Co-operative Bank, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Northern Bank (Danske Bank), Northern Rock, and Royal Bank of Scotland Group (including NatWest and Ulster Bank).

A website has been set up at www.canipayfaster.co.uk to allow people to check, using the receiving account's sort code, whether a bank is set up to receive faster payments.

Unquote.

While i appreciate this refers to the U.K. banking system, i think it will be of interest to all T.Visa members who use internet services to transfer money between accounts, pay bills ect., it certainly is good news for me, especially when i want to facilitate an urgent swift transfer at short notice.

It means i can top up a required U.K. account on the same day as i wish to make a late transfer from any high interest account i wish to transfer it from.

Of course it does not mean same day transfer from any other bank not listed or overseas transfers ( unless you already have facilities arranged with your bank ect. )

marshbags

Edited May 27, 2008 by marshbags

[tw25rw]

Sounds like the UK banking system is moving into the 20th century at last.

[Penkoprod]

Sounds like the UK banking system is moving into the 20th century at last.

That'l only put it ONE hundred years behind then

Penkoprod

[raybingham]

BBC News 08:15 GMT, Tuesday, 27 May 2008 09:15 UK

Faster bank transfers under way

While i appreciate this refers to the U.K. banking system, i think it will be of interest to all T.Visa members who use internet services to transfer money between accounts, pay bills ect., it certainly is good news for me, especially when i want to facilitate an urgent swift transfer at short notice.

Marshbags -

This will not help you with SWIFT transfers which are international.

It is an intra-Uk system ala BACS technology. It is currently working at the £20 level (wow) but will develop to £10,000.

http://en.wikipedia.org/wiki/Faster_Payments_Service

Full marks for advancing to where Thailand has been for some time ! (Seriously, it is a major step forward).

For ages Thai bank account holders have been able to effect same day value payments to third parties - and through ATMs (can't do that in the UK). As an ex-UK bank manager it impressed me when I could tap in a few digits and send some (any) Thai girl 3,000 Baht from my SCB account to BKB same day.

[marshbags]

As a regular user of the domestic banking facilities and swift transfers, i look on it as totally positive and also give them full marks

It will allow me to transfer payments to my flexi acc. from higher interest accounts later than normal and it assist me and my arrangements / timing of transfers to facilitate my swift transfers to Thailand

I will, as i always do, be able to anticipate the delivery of my downloaded copy of my swift application and while it may only be a couple of days, i feel a bit more confident on my timing.

I tried to cover the swift international part in my O.P. and apologise for it not being more explicit.

Of course it does not mean same day transfer from any other bank not listed or overseas transfers unless you already have facilities arranged with your bank ect. in my case swift.

marshbags

[micaw60]

I can confirm the system is working; my salary payment was tranferred from HSBC London to Kasikorn Bank yesterday and when I checked this morning the money arrived in the same day. This used to take up to 5 working days so all good for me!

Edited May 28, 2008 by micaw60

[marshbags]

I can confirm the system is working; my salary payment was tranferred from HSBC London to Kasikorn Bank yesterday and when I checked this morning the money arrived in the same day. This used to take up to 5 working days so all good for me!

Thanks for the update m60 and pleased it has already help speed your transfers up.

I was thinking about HSBC connected partners re their many Int. services and transfers and wondered if their overseas transactions might be improved, seems they have been in you case.

While i appreciate it,s early days to judge the effects in the broader sense, i am very hopeful that this is the start of similar improvements that will bring the U.K. banking into the 21st century in this important area.

marshbags