What is it?
We are working with the industry on a significant project to extend the settlement and interchange of financial transactions between banks. Once implemented, this will enable Kiwis to make and receive electronic payments between accounts across different banks every day of the year.
SBI refers to Settlement Before Interchange – the process by which our Participants settle and send domestic retail payment transactions between each other.
Why are we looking at it?
Technological advancements have given rise to a highly connected world that is always on, underpinned by continuous economic activity. This uninterrupted environment is changing the way people work, run their businesses and go about their day-to-day lives. In response to this trend, many industries are under pressure to meet customer expectations for improved service. The payments industry is no exception and there is increasing demand to meet the “always on” expectations of customers.
Today, our bulk electronic transactions between financial institutions generally operate over a traditional five-day business week.
Where we’re currently at
Due to complexity and the varying nature of the system changes required by banks we are currently working with our Participants to confirm an industry implementation timetable. More information will be provided on next steps as they become available.