How do bill payments work?

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sbiddle

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#435133 4-Feb-2011 06:20

wreck90: From what I understand, the new enhancements will allow asb account holds to see updates 5 times a day - a great thing for ecommerce so you can send goods on the same day as the order is placed.

Details are still light though, need to see a better analysis from our so-called financial journalists - i may be totally wrong :)

As I explained above settlements between banks does not automatically mean that money will end up in accounts at the same time. It could do, but may not.

My understanding is the first settlement window of the day is still going to be around 3-4pm, with 4 after that, so it won't necessaraily result in immediate changes.

thestokes

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#435161 4-Feb-2011 08:55

wreck90:
thestokes: Settlement Before Interchange (commonly know as SBI currently scheduled for testing May ater being pushed back from March with a go live in November) won't mean much unless your bank is online real time. Currently the only major bank is online real time to my knowledge in NZ is ASB (although Kiwibank might be able to do something similar). The only real benefit for the other banks is better liquidity management for settling with the Reserve Bank.
Electronic funds can either be transferred as clear or uncleared. Uncleared funds just like cheques can be dishonoured up to 3 working days after they were sent... although statistically way less than 1% of electronic direct credits are reversed.

Will this mean ASB becomes the preferred bank for online commerce?

I would say this means they (ASB) will have a distinct competitive advantage...

The 5 settlement windows haven't been sorted but I would imagine that we follow Oz and there RTGS meaning a midday(ish) settlement being the first with the last around 1am the following day.

Geese

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#435211 4-Feb-2011 10:37

Kiwibank is also real time. Kiwibank to Kiwibank transactions occur immediately at any time of day/week.

Delorean

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#435602 5-Feb-2011 09:39

sbiddle:
richms: Some banks appear to be only one IME, national bank. It seems some people use that to their advantage on trademe too.

National's system is actually not that great.. ANZ are also dumping their own platform to move to this!

The National Bank System was preferred as 1) Is newer than Hogan 2) Easier to use and third, which is the most important thing (as most banks have heavily customised their core system and in some cases, no further support is provided by the vendor) Systematics It is off the shelf and a modular system

Once the migration occurs, then Systematics can be upgraded to the latest version (2011) and who knows what fancy things it may have

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