Published: September 28, 2018
The proliferation of real time transaction banking looks unstoppable, but with the new technology comes serious concerns about flaws in the system that could end up costing banks money.
Real time is the banking sector’s culmination of the internet age where information is available instantly by anyone. Add to this the benefits of improved liquidity as payments are processed instantly rather than being caught up in red tape and it is easy to see why there is huge demand for real time technologies at the wholesale and private banking levels.
“The provision of real time payments has become a global priority,” said Anthony Brady, digital platform officer, treasury services at BNY Mellon. “And increasingly, domestic real time payments systems are being established across the globe.”
Countries from the US to the UK, Sweden to Bahrain and Poland to Finland have developed their own domestic faster payment systems.
“While real time payments initially is a domestic system, it is also part of a longer-term vision,” said Brady. “It is hoped that ultimately, individual systems can become interoperable; thereby making real-time cross-border payments possible.”