Faster Payments?

The UK's Faster Payments service has taken a critical panning from the BBC. The Corporation's MoneyBox programme claims the system is in "disarray", as banks implement the technology in a disjointed patchwork fashion.

Northern Rock, Citibank and Abbey have not started to make same-day payments.

The Association for Payments and Clearing Services (APACS) which represents the industry has removed Abbey's name from its published list of Faster Payments subscribers.

The bank told Money Box it has had to "reschedule its implementation" while it focuses on IT integration with its parent bank, Santander.

Other founding members have started making Faster Payments, but have made little progress.

Nationwide building society, Co-operative bank and Yorkshire and Clydesdale banks are processing less than 10% of transactions in this way.

Only one in three sort codes of Nationwide's FlexAccounts can receive same-day payments.

MoneyBox claims to have been inundated with complaints from customers who say the system is often unreliable and that they do not know when money will clear. I made my own position on this clear when I blogged about my experiences with Internet bank Egg back in September last year.

The UK banking industry used to be pretty good at co-ordinated mass-market switchovers to new technology. It has taken a massive step backwards with regards to Faster Payments.