You can use the search function to find a range of UK Finance material, from consultation responses to thought leadership to blogs, or to find content on a range of topics from Capital Markets & Wholesale to Payments & Innovation.
Described as 'the backbone of every payment in the UK? by Bank of England governor Mark Carney, the Real-Time Gross Settlement (RTGS) is the infrastructure that holds accounts for banks, building societies and other institutions. The balances in these accounts can be used to move money in real time between these account holders. This delivers final and risk-free settlement.
The Bank has initiated a programme to renew the RTGS service to reflect changes in the payments landscape - including technological advances, regulatory demands, and changing user expectations of consumers and businesses. The renewed service is intended to deliver increased infrastructure resilience and access, offer wider interoperability, improved user functionality and strengthened end-to-end risk management. Adopting a measured approach, the change implementation is to be phased over a number of years and is expected to be completed in early 2023, with the legacy infrastructure closed down in 2024. Further details of the Bank's RTGS renewal programme are available here.
Among the enhancements to be delivered are a number of specific initiatives that should be considered in the broader context of European and global developments: interoperability between gross and retail payment schemes (the latter managed by Pay.UK); enhanced data capability; the drive to increase competition; and the move to enable innovation at the heart of the payments network.
Established and new market entrant Payments System Providers (PSPs) should view the renewal programme not just as a requirement to update their process and systems, but as one that offers a unique opportunity for the industry to inform and shape the renewal process and, ultimately, enable innovation in payments. Successful delivery and optimal use of the renewed infrastructure can only be determined with industry engagement in navigating and defining the renewal approach, and by reflecting the increasingly dynamic payments landscape and user requirements.
Some of the themes that would benefit from industry contribution include:
UK Finance, in collaboration with the Bank, is facilitating industry engagement on this strategic change programme through member events and communications. The industry has a unique opportunity to inform and shape the design, development and delivery of the RTGS renewal programme, ensuring that it is ?future proofed? and capable of delivering innovation in the payments landscape for years to come.
Sairoze Hemani, Manager, PAYMENTS POLICY, UK Finance