The lack of round-the-clock liquidity and the burdensome processes of your customer (KYC) requirements are holding banks back from fully embracing real-time payments.
So problematic are these issues that some banks have put their real-time payment projects on hold, according to Domenico business director at Volante Technologies, and member of the ECB’s Target2 working group.
“Firstly, they were not able to have 100 percent of the liquidity position in real-time especially when a bank is closed, such as at night or over the weekend,” says Scaffidi. “Secondly, if you needed to settle a real-time payment in a couple of seconds you need to innovate your legacy systems to allow all rings of the real-time payment chain to work in real-time such as section screening, AML and the online balance of your customer in real-time.”