Faster Payments: Tomorrow happened yesterday
This addition to the Transaction Banking Compass series explains the key operating, strategic and commercial issues created by the new faster payments service. It will help you unlock the potential benefits and it will help you to manage the risk.
Some key considerations
The UK Faster Payments service is a self-regulatory response to the threat of regulation in the UK Payments market.
Launched in May 2008, the service is set to exceed 2.5 billion transactions by 2018 and is also set to revolutionise the UK Payments market by:
- Providing a true customer electronic payment position
- Allowing customers to make payments when they want
- Confirming to customers that payments have been made
- Exchanging value in near real-time
This creates a number of challenges for Payment Service providers:
- Payments are irrevocable
- The payment service is 24/7
- Settlement is on a deferred net settlement basis
- Accounting systems need to be real-time
Not only does this create complexity and risk for operational areas, the Payment Services Directive will allow new competitors to access the benefits of the collective infrastructure to achieve reach, achieve speed to market and provide services in a way that has only been considered remote to date.
The PwC difference
Our team of experienced practitioners includes people who directed the development, wrote the rules or helped implement the change. They can give you an inside track to the potential pitfalls and acieve a sustainable strategic response. They can help you increase revenues and reduce cost. They can help you to reduce your risk too.
Previous editions
Current issue: Transaction Banking Compass: Reshaping the vision: Emerging stronger from market transformation
There are three key areas banks need to address to sustain competitive relevance in the rapidly changing transaction banking field: how to get closer to chosen customers; how to manage risk and capital; and how to keep pace with market developments.
