Bacs, the UK banks' clearing house, is considering a radical
restructuring that could drag payment services into the Internet
age.
The secret restructuring proposals - the most radical in the
company's 33-year history - could allow non-bank members to become
shareholders in Bacs, throwing open the elite financial club.
Payment clearing association Apacs could take over the running of
the direct debit scheme, under one proposal being considered.
The shake-up - discussed by Bacs directors and the high street
banks - would open the gateway for a host of IT suppliers to
develop Web-based payment services in partnership with UK banks,
analysts claim.
UK banks have come under fire from the government and analysts for
failing to offer businesses real-time payment services over the
Internet. A revitalised Bacs - with greater investment and a wider
skills base - could develop technology to reduce the time taken to
clear cheques, analysts believe. Bacs could also provide trusted
third-party services to guarantee real-time payments over the
Web.
"[A restructuring] could open up Bacs to new shareholders such as
IBM and BT," said one industry source. "It would help to get new
blood in and Bacs would be freer to do commercial services."
Bacs is owned by its members, the leading banks and building
societies. Half of the British population uses Bacs for direct
debit payments, while 40,000 businesses use the clearing house for
payments, including salary payrolls.
Under the restructuring plans Bacs would remain a limited company
and its IT staff would continue to be responsible for the daily
operations and the processing of transactions.
Analysts said a restructured Bacs would be good for business.
Duncan Brown, consulting director at Ovum, said, "[The
restructuring] is looking at improved service and efficiency over
the whole inter-banking system."
Bacs would be well placed to become a trusted third party to
guarantee financial transactions online, he said.
Earlier this year Computer Weekly revealed the Bacs board had
failed to act on more than five years of detailed recommendations
from its IT department to introduce a public key infrastructure
(PKI) security service.
In a statement to Computer Weekly, Bacs admitted it was reviewing
its structure. and examining its governance "to identify the most
appropriate direction for the future" but said that no decision had
been taken.
The review is being co-ordinated by Apacs. Bacs also said its
security framework operated to a high standard and was subject to
regular reviews.
Apacs would not comment.