The Future of Online Banking
Reports released by the Sydney Morning Herald and Better Banking report that 3 out of the 4 biggest banks will roll out a New Payments Platform (NPP) offering real time payments. This new payment platform will allow customers access to clear funds in less than 1 minute as opposed to the existing 2-3 days.
What is NPP?
Gone are the days of a BSB and account number. Customers will instead have a unique ID which links to an email address or mobile. Still in the testing phase, the big banks are trialling the new system on a select group of customers to iron out any glitches and ensure the smooth and successful roll out to all customers.
What does this mean for the future of Real Estate and Trust Accounting?
No clearance waiting times
No more waiting for 24-48 hours for funds to clear. Real time payments will clear 7 days a week – whether it be a weekend of a public holiday.
Sales settlements will now be instantaneous with vendors not needing to wait 2-3 days to receive funds. Landlords will also receive their funds instantly. This will hopefully eliminate the annoying ‘when am I going to get paid’ phone calls!
With instant payments, everyone knows where they stand. Payments are instant so assurances of payment are transparent – both in and out of your account.
Quicker Rental Transactions
With instant payments, rental funds will clear quicker, minimising rental arrears, which in turn will minimise admin time.
Greater Character References
NAB reports on their website that 280 characters can be included as a reference for each payment. This will hopefully minimise unidentified deposits with confusing or completely missing references.
Tracing transactions is due to be a much simpler process. Reports can be generated in seconds such as a calculation on monies paid to a particular supplier.
There are of course the skeptics and some potential downsides to the NPP. There is the fear that the real time payments will bring an elevated level of risk for cyber fraud. The fear lies in the premise that by the time it takes to detect the fraud, the money has gone, as well as the potential for hackers to steal log-in identities and break into accounts. REI NSW reported an article on a Sydney agency losing $757, 000 from their account right in front of their eyes. As with any system, it is important to check your systems you have in place to protect yourself against any form of cyber theft.
We will wait and see what the full roll-out of the new payment platform brings. Above all, ensure your correct security systems and level of authority are in place to protect yourself and your business from any new form of cyber crime.
– Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 20 years industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.