24 February 2018
visit www.nextgenbanking.co.uk/

UK banks stage go slow over Faster Payments

12 July 2007  |  13695 views  |  0 a clock

The UK banking industry is to delay the launch of the Faster Payments scheme until next year, after VocaLink slipped its delivery schedule for the central system by more than four months.

The service, designed to introduce near real-time transfer of phone, Internet and standing order payments instructions, was set to be introduced in November. The programme was forced on the industry by the Office of Fair Trading following an investigation into the lengthy clearing cycle for personal payments.

UK payments body Apacs announced the delay in a prepared statement: "The testing of the Faster Payments service has proved more complex and time-consuming than originally expected, so its introduction will not now be happening this year."

Paul Smee, Apacs chief executive says the Office of Fair Trading has been informed and that a "thorough re-plan" is now being undertaken so that the industry can announce a revised launch date by mid-August.

The delay marks an embarassing volte face for Smee, who only five months ago issued a cheerfully optimistic update confirming that the UK banking industry was well on-track to introducing the faster payments programme by the November deadline.

The multi-million pound central system is being developed by VocaLink and backed by 13 clearing bank members. Finextra understands that VocaLink only warned the banks of problems with integration testing on 23 March, five days before user acceptance testing was set to begin. Four months later and the vendor appeared no nearer to delivering a functional system capable of full user acceptance testing, forcing the banks to scrap the original launch date and revisit the schedule.

Despite repeated requests for comment, VocaLink has declined to respond to Finextra's questions on the project. All requests for information are being redirected back to Apacs.

Says Smee: "There is no room for error when launching a system which forms part of the UK's economic infrastructure. Clearly, it is more important to make sure it is done with our total confidence than rushed to meet a self-imposed delivery date. This is a huge project; the investment by UK banks in the central system and in adapting their own systems has been high and is continuing."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Thales signs Faster Payment banks to security module

Thales signs Faster Payment banks to security module

15 June 2007  |  5383 views  |  0 comments
Voca and Link to merge

Voca and Link to merge

06 March 2007  |  8557 views  |  0 comments
Fast Payments creates strong case for two-factor authentication, says Thales

Fast Payments creates strong case for two-factor authentication, says Thales

06 December 2006  |  10971 views  |  0 comments
UK sets up new payments governance body

UK sets up new payments governance body

14 November 2006  |  6786 views  |  0 comments
Lloyds TSB to implement Faster Payments gateway with ACI

Lloyds TSB to implement Faster Payments gateway with ACI

02 November 2006  |  11846 views  |  0 comments
Link to open up to consumers

Link to open up to consumers

06 April 2006  |  5305 views  |  0 comments
Bacs ordered to open up to businesses and consumers

Bacs ordered to open up to businesses and consumers

01 March 2006  |  11275 views  |  0 comments
UK task force to investigate cheque clearing times

UK task force to investigate cheque clearing times

08 November 2005  |  6586 views  |  0 comments
Banks cut deal with OFT to speed up payments - FT

Banks cut deal with OFT to speed up payments - FT

23 May 2005  |  5767 views  |  0 comments
OFT establishes payment systems task force

OFT establishes payment systems task force

17 March 2004  |  10557 views  |  0 comments
OFT calls for action on bank clearing

OFT calls for action on bank clearing

27 February 2004  |  5787 views  |  0 comments
Clearing system delays cost UK consumers £30 million annually

Clearing system delays cost UK consumers £30 million annually

23 May 2003  |  7800 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.nextgenbanking.co.ukRegister for the webinarVisit https://www.capgemini.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11614 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10276 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8397 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
7948 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7664 views comments | 10 tweets | 14 linkedin

Featured job

Find your next job