Payments - the faster the better?

When most people talk about innovation in ‘banking' they mean predominantly innovation in payments.

How you pay for things is not banking as such and many of the new payments systems rely on your willingness to trade between convenience with security (of information about yourself and your money on your smartphone for example).

Ever wondered how many payments are being made and how much money changes hands? Have a look at this website

For more information on payments contact the Payments Council

So why focus on payments? We like easy deals and we like our purchase now!

The faster the payment reconciliation, the sooner the seller can balance their books, manage their stock levels and their cash flows. In addition, the buyer gets their goods when they want them and usually with a choice of source of funds; examples like direct payment or credit card.

Because payment systems sit on top of the banking system, they are relatively easy to develop and can make the most of new technologies. The big issue for the banks is the age and reliability of their core banking systems which 'holds' the data of your account/money and how the new payments systems 'talk' to the old ones. It is a little like sending a snapchat to a first generation mobile phone - the digital signal may get there but the phone can't do something useful with it. (blog photo courtesy of

Arguably, as payments become more direct and faster, the banks will be the only ones who suffer as they don’t hold money in the clearance system for any length of time and therefore don’t make enough money from interest to cover the cost of the payments system. This is one of the challenges for the future of 'free' current account banking on the high street.

At Services Family Ltd, we are working with one of Europe's best banking system developers to use an integrated and seamless approach to technology and deliver a highly efficient bank. This will give us a performance advantage over the 'big banks' and enable a better and more efficient customer experience - hopefully, faster and better.