Faster Payments Implementation a Success, but Work Still to be Done
A survey carried out by MPI Europe, a financial services management consultancy, confirms that scheme members have successfully implemented Faster Payments, but there is still significant work required to realise the full benefits of the new payment method, particularly in terms of widespread adoption of the scheme, as well as in the development of more effective security measures.
Survey participants included large banks, building societies and smaller retail banks. Since the official launch of Faster Payments in May 2008, the 13 member banks have achieved their targets in terms of a base implementation of the system with large volumes of payments being processed and successfully flowing through the central infrastructure provided by VocaLink.
However, the survey shows that 35% of non-clearing banks are still unable to receive faster payments, indicating a large divide between the implementation of Faster Payment systems by founding members of the scheme and others. As a result, the adoption of the faster payments scheme is not as rapid as it could be.
In addition, the speed of the Faster Payments process, which moves money between accounts in near real time, presents important security and fraud challenges which are yet to be fully addressed by some banks. John Cant, managing director of MPI Europe, said: “Some banks have had to put in place temporary measures to address these issues. Addressing them on a more universal and permanent basis is one of the main tasks in this area for 2009.”