Faster banking courtesy of Reserve Bank

JeffH · September 23, 2016, 04:39:35 PM

Saw this today.

QuoteBanking about to get a lot faster with instant transfers, phone numbers to replace BSBs
Peter Martin
Mobile phone numbers and internet addresses will replace bank account numbers and money will be transferred near-instantly between institutions as part of what the Reserve Bank is calling its new payments platform.
Although a joint project with the banks, the central database will be owned and managed by the Reserve Bank and will replace computer systems that date back to the days of programming by punch cards.
''When this work is finished we will be able to make instantaneous payments to one another, with the money transferring between our accounts in a matter of seconds – and that is regardless of who we bank with,'' incoming reserve Bank governor Philip Lowe said in unveiling the platform to a parliamentary committee on Thursday.
''You can think of it as a central database that might have your phone number in it and a link to
your account. You can change that link if you subsequently want to change where your money is going to. It may well make the whole issue of BSBs and account numbers less important.
''We will also be able to send a lot more information with the payments. You will no longer be restricted to just sending 14 characters if you go on to your internet bank to make a payment.''
Dr Lowe said the origin of the 14-character rule was a limitation of the amount of information that could be fitted on the punch cards used in computing in the 1980s.
''Our payment system in 2016 is still being constrained by punch cards. It has been a major problem, and we have decided, with the industry, to do something about that. It will help competition, but it will also deliver actual value to consumers. You and I could sit here and make a payment to one another, and it would be across our banks' accounts in 10 seconds. So these delays people experience in moving money between banks are all going to go.''
SMH 23/09/16

I have noticed quite recently that transfers that used to take, at least. one business day are now happening in a few hours. So some banks have improved their systems -I must do a test on a weekend to see if Westpac's system still has Saturday and Sunday off.

•I wonder what the banks think about not getting the interest from all that money floating in limbo overnight? Probably peanuts to them but, collectively, a large sum for us.
•And I also wonder you will pay for it? Us or the banks? I think us in the end because banks will find some sneaky way to pass on any costs -presumably the reserve bank will want recompense for providing and administering the system. [I hope they are better at it than the Australian bureau of statistics is with their on-line security.]

ausproofs · September 23, 2016, 04:55:27 PM

Paypal does it now when you think about it.. also some banks ie Commbank does it with their app.

Fulvio · September 23, 2016, 04:58:16 PM

Quotecentral database will be owned and managed by the Reserve Bank

While the rest of the world is working on trustless, decentralised blockchains, these wankers want to centralise things even more.

Because, of course, such a target wouldn't be tempting at all to all manner of miscreants. :dodgy:

JeffH · September 23, 2016, 05:21:32 PM

QuotePaypal does it now when you think about it.. also some banks ie Commbank does it with their app.

They are nowhere near what is being promised. What we get may be another thing.

Quotethese wankers want to centralise things even more.

And that surprises you?
No, I didn't think so.

JeffH · January 30, 2018, 05:39:41 PM

Still hasn't happened. Was said to commence post Australia Day weekend 2018.
No publicity lately -they of course didn't say how much "post".

runway · February 12, 2018, 10:26:00 PM

Just like bitcoin rubbish

kchan1111 · February 13, 2018, 12:22:41 PM

Quote from: 'runway' pid='114128' dateline='1518436560'Just like bitcoin rubbish

It should take less electricity than bitcoin.

https://digiconomist.net/bitcoin-energy-consumption

runway · February 13, 2018, 03:44:45 PM

Did you know?

Ever since its inception Bitcoin's trust-minimizing consensus has been enabled by its proof-of-work algorithm. The machines performing the "work" are consuming huge amounts of energy while doing so. The Bitcoin Energy Consumption Index was created to provide insight into this amount, and raise awareness on the unsustainability of the proof-of-work algorithm.

seedyrom · February 13, 2018, 03:53:19 PM

Just amazing.
Bitcoin mining using the same amount of electricity as Singapore, with all their air conditioners running 24/7, and massive places of business.

All to keep the pyramid scheme being propped up.

JeffH · February 13, 2018, 06:06:57 PM

Well maybe something is finally happening. Bank transfers in less than a minute as real-time payments rolled out
Let's see then. Report what your experience is.
Cynical me suspects it will take some time to be operating properly and, in the meantime, all sorts of "teething" problems will occur.

runway · February 13, 2018, 09:06:06 PM

Quote from: 'seedyrom' pid='114143' dateline='1518499399'Just amazing.
Bitcoin mining using the same amount of electricity as Singapore, with all their air conditioners running 24/7, and massive places of business.

All to keep the pyramid scheme being propped up.

Exactly what it is .... another pyramid scheme :@

JeffH · February 18, 2018, 02:55:39 PM

Well the Commonwealth bank has started with the New payments platform. When I logged in the check my account balance (even worse than usual) a message popped up inviting me to register for a PayID so I can take advantage of the instant payments system.

"You beauty" I thought and went to the registration page. The only way they offer to register is from a mobile phone, using the CommBank app and the mobile number is the PayID. Another company that assumes everyone has a mobile phone and is not interested in providing an alternative for reactionaries, like me.
I have two other numbers (landline phone and ABN) that are specifically mentioned in The CBA screed about PayID as being suitable. The official PayID site says you can choose a number and register from your usual internet or mobile banking account. Well, definitely not true in the case of CBA (unless you have a mobile phone with the CBA app loaded).
I have lodged an enquiry to find out if there is an alternative way. I also note someone else has complained in the CBA support forum of inability to register PayID for a second account as they only have one mobile pnone and each account must have a unique PayID number.

I would be interested to find out what other financial institutions are doing.

nealeffendi · February 18, 2018, 03:30:40 PM

JeffH, they forget that millions of us don't use phones with apps. I only got a "smart" phone last week (my sons old phone). Not a chance in hell that I'll use it for banking or bill paying as the risk of hacking or identity theft makes them unsafe.

autocoupler · February 18, 2018, 07:08:52 PM

Yes, the more we allow technology to dominate, the more at risk we will be. I'll never own a smart phone, welllllllllllllll you should never say never I guess, but my little old flip phone with the BIG letters is just fine :grin:

JeffH · February 18, 2018, 07:46:34 PM

My old Motorola brick far outperformed the CDMA phone that Telstra forced me to because they shut down the GSM network. It basically only made and received calls but it was a telephone after all.
Two of the new phones went up in flames -well I exaggerate; only one actually caught fire, the other just emitted copious clouds of smoke before it died. After that I just walked away from my contract and have never felt disadvantaged.

[Except for all these idiot companies that cannot comprehend that not everyone has a mobile phone.]