The Faster Payments system can generate new revenue streams for banks and is not just a tick in the box for bank compliance, research has revealed.
Two-thirds of banks felt that Faster Payments could deliver new revenues, according to research carried out by VocaLink, which built and runs the Faster Payments infrastructure, and PricewaterhouseCoopers.
But the lessons learnt from its implementation are food for thought for banks weighed down by inflexible legacy payment systems.
Mike Banyard, senior payment industry commercialisation manager at HSBC, said, "As one of the founding members of the service, we are reaping the benefits of seizing the commercial advantages of Faster Payments early on. From the outset, far from regarding Faster Payments as a compliance issue, we have embraced the real-time technology as a way of introducing new and improved services to our customers and unlocking new revenue opportunities."
The research also identified lessons for banks implementing any real-time payment infrastructures.
"Banks which have already invested in modern real-time accounting systems will find it easier to implement and operate Faster Payments than their counterparts with old legacy and batch-based systems," the report said. "Those banks with legacy systems will find that real-time payments provide a much-needed incentive to re-architect their transaction banking platforms to cope with the demands of the modern payments world."
It also revealed that banks introducing real-time payments should consider a charging model for customers from the outset.
The Faster Payments system was created when Apacs, now known as UK Payments Administration, and UK banks decided to create a service which could clear payments in a day at the end of 2006.