Real Time Payments Network

The clearing house has released business principles that outline the operation of the real time payments (RTP) Network. A full set of guidelines is here. These are important inasmuch as they set out key points, among them most importantly: TCH runs the RTP network as a utility for the benefit of the industry and RTP fees shall continue to be flat for all participants regardless of size, and shall not include volume discounts or minimum volume requirements. It does though, contains a super-clause, which is typical of the monopolistic “free market” here in America. In an effort to restrain competition, … Continue reading Real Time Payments Network

Faster Payments – Will tech eat the banks?

At last the big, big tech companies are driving the US Federal Reserve to sponsor and get behind a faster payments initiative. Amazon, Apple, Google, PayPal, Square, Stripe and Intuit, have all co-signed a letter supporting the the Fed being in charge of the development of a system that can connect all the banks and credit unions in the U.S. to speed up payments. I’ve long complained here that the US System is laughably out of date, and the system Automated Clearing House and its associated network is still loosely based on the delivery times of the Pony Express and … Continue reading Faster Payments – Will tech eat the banks?

Retail vs Investment Banking

I’ve no idea what long term this change will make, but was delighted to receive this notification from my UK Bank,¬†first direct, and HSBC subsidiary. Something we are (very) unlikely to see here in the US in the near future. What is says is We wanted to let you know that in line with new regulations introduced after the global financial crisis, later this year HSBC will be changing the way it’s structured in the United Kingdom (UK). The new rules mean all banks with deposits of UKP 25bn or more will have to keep their “retail banking” business seperate … Continue reading Retail vs Investment Banking