Latest figures published today by CHAPS reveal that for the first time in seven years CHAPS volumes have exceeded pre-recession and financial crisis levels, reflecting the general revival in financial activity.
CHAPS transactions between financial organisations also climbed by 5.6%. As CHAPS is responsible for processing 92% of the UK’s total daily sterling clearing values, it is a window to the performance of the financial sterling markets.
Volumes of payments of all sizes below £100 million grew in 2014, including international sterling transfers and corporate treasury. In the first half of 2014, the number of CHAPS payments linked to the housing market saw a 16% year-on-year rise.
CHAPS volumes have remained resilient in relation to the Faster Payments Service, which was launched in2008 and is an alternative service to CHAPS for urgent payments for individuals and businesses up to £100,000. Despite some predictions of a long-term fall of 50% or more in these CHAPS volumes, the actual figures showed an increase of 1%.
Phil Kenworthy, CHAPS Co Managing Director, said:
“It is really encouraging to see that the markets are recovering while CHAPS volumes have for the first time exceeded pre-recession volumes, despite the increased choice in payment systems.
“CHAPS plays a fundamental role within the UK economy for processing payments safely and securely; as our participation base continues to grow, we expect to see a further increase in volumes in the future.”