Q: I read that the Reserve Bank was critical of the big banks for not making new fast payments services available to all their customers. I am a customer of one of the big banks. What is this service and how do I know if I am getting it?
A: The Reserve Bank of Australia (RBA) is disappointed with the big four banks’ implementation of the New Payments Platform (NPP) which provides significant benefits for consumers.
Speaking at last week’s ASIC Forum in Sydney, RBA assistant governor Michele Bullock said: “We have been somewhat underwhelmed by the progress of some of the major banks. Some of them have been much slower to provide their customers with fast payment services.”
The NPP was launched in February 2018 and is an infrastructure that allows consumers, businesses and government agencies to make instant payments between accounts at participating financial institutions.
The main feature of the platform is that payments can be sent and received almost instantly 24 hours a day, seven days a week. The NPP allows customers to create their own PayID to make payments with just an email address, phone number or ABN instead of entering BSB and account numbers.
In addition, the platform has introduced data rich payments, which lets consumers clearly detail their payments through a 280 character description attached to it.
BPAY’s Osko service is built on the NPP and facilitates the technology but the RBA is disappointed how the big four banks have adopted it.
Bullock says: “But with some big banks slow to complete NPP related changes to their internal systems, there remain large numbers of customers that do not have a full range of convenient options for initiating fast payments even if their accounts can be reached by incoming fast payments.”
Out of the four banks, only NAB and Westpac have the full functionality for their customers to use Osko via internet banking and the mobile app.
Commonwealth Bank only allows for its customers to use Osko through their mobile app and has not built the service into its online banking. ANZ is slowly adopting Osko, which is available on their internet banking and will soon be on its app.
Check if your bank is on the NPP through Osko here.