Banking Nonsense
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<blockquote class="ipsBlockquote" data-author="NTA" data-cid="587326" data-time="1465777918">
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<p>Yep, that's about right. If I transfer between my own accounts, its instantaneous, but to anyone else is overnight.</p>
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<p>The banks say it is so they can check and confirm details. I believe there are also some checks they need to make for our anti-terror laws.</p>
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<p>Some say they are floating those funds to skim interest, but I find that hard to believe as someone would have called them on it by now.</p>
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<p>The Reserve Bank is apparently working on getting everyone to instantaneous transfers (domestic institutions) by the end of this year. Don't hold your breath.</p>
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<p>I actually wrote the batch funds transfer system for a bank I was working for, to use domestic bank accounts (they never had it before because they were using forex products). It is quite simple, really, and there is no reason the banks couldn't process files instantly. They just choose not to develop the capability.</p>
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<p>The systems we're using are decades old and as NQ says: ain't broke, don't spend money fixing it. That's why our banks post multi-billions in profit, because they like it this way.</p>
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<p>Yep. The "intra-day" stuff that BNZ and Westpac do isn't actually an investment in new technology, it's just faking it by running batch processing jobs during the day. They take on some risk by doing this, as they update the balance before the funds are actually approved, so I think they only do it up to a certain $ limit.</p>
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<p>They are happy to take on that risk if it's between their own accounts though (as it's all within their own environment). </p> -
<blockquote class="ipsBlockquote" data-author="Siam" data-cid="587334" data-time="1465778288">
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<p>Thanks Nick</p>
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<p>How come the 2 day delay over weekends or longer for a public holiday? Is the checks and confirmation process by humans?</p>
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<p>All I know is that the banks don't do batch processing on Saturday and Sunday nights. I don't actually know the reason behind this - probably gives them a chance to do scheduled maintenance etc on their systems.</p> -
<p>I worked for a small direct debit company from 2000-2005 and we processed files manually - that was the reason we didn't debit (customers) or credit (clients) on weekends. Because we had checks and balances that needed human eyes for a small company, and sometimes had to run it a tad late to ensure we picked up any last-minute requests.</p>
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<p>It was worse with Amex and Diners: 20 records per page, with disclaimers top and bottom, that had to be signed and FAXED to their respective processing houses.</p>
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<p>You'll note most direct debit products don't work on weekends or public holidays, because they want someone to actually push the button a lot of times. Gives them someone ("computer error" my arse) to blame.</p> -
<p>commbank have that thing through the app where you can transfer to another person's commbank account instantly by tapping your phones together, it's awesome. </p>
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<p>but, i agree, in general, banks are fluffybunnies. </p> -
<p>Australia was one of the very first in the world to have what's known as Real-Time Gross Settlement of any kind, back in the 1990s. Australian banks net their obligations to each other at the end of each business day and settle them by moving funds at 9am each morning. So all the ANZ count up all the money they owe to accounts held with Westpac and deduct receipts due to them from Westpac (e.g. for settlement of securities trades) and move the difference through a batch process called (from memory) RITS. The weekend delay is simply because Friday's payments are moved on Monday morning.</p>
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<p>Not moving the funds between accounts on the same day (or even instantaneously) is a choice that your bank is making. The reason they don't do it is because there is substantial income to be made in keeping it "idle" for as long as possible. All the credit balances can be invested intra-day, or used to fund their positions with the central bank that they might otherwise have to borrow (at an actual cost) to cover. There's no reason for clients to put up with it but be warned, if they change the way they do things they'll probably pass the costs involved back onto you the customer through increased margins or ( as in the UK) actual operating fees for current accounts.</p> -
<p>Thanks JC - I have some understanding of the IT side of things, but good to know why it's set up like this from the business POV.</p>
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<blockquote class="ipsBlockquote" data-author="JC" data-cid="587400" data-time="1465789173">
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<p>Australia was one of the very first in the world to have what's known as Real-Time Gross Settlement of any kind, back in the 1990s. </p>
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<p>And we did that because our banking sector was (relatively) small and uncomplicated in terms of number of products. When you look at the US banking system - mainly due to the sheer number of institutions - implementing standards-based transactions is more difficult.</p>
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<p>New Zealand is now well ahead of us on the electronic banking side only in part due to the smaller population. Mostly, NZ institutions (and not just banks) see the benefits of serving customers with a minimum of cash transactions and the associated logistics that creates. Also a better nationwide telecoms network and the appetite to take advantage of it.</p>
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<p>I think I said while I was on holiday, the only place I really <em>needed</em> cash was at a little cafe in Foxton Beach where they didn't have Credit facilities and I was out of cash.</p>
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<p>Oh and Siam: don't use a non-ANZ ATM unless you want to pop a vein :)</p> -
<blockquote class="ipsBlockquote" data-author="NTA" data-cid="587431" data-time="1465799999">
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<p>LOL. Wasn't that bad. Summer, plenty of sun, the windmill was cool, and the beach was great. Broke up the drive from Whanganui to Welly nicely.</p>
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<p>It could be a really nice little spot, the beach is nice but horrible to launch boats on, Its got more than its share of gang issues <a data-ipb='nomediaparse' href='http://www.stuff.co.nz/national/crime/2506390/Police-clamp-down-on-Horowhenua-gang-violence'>http://www.stuff.co.nz/national/crime/2506390/Police-clamp-down-on-Horowhenua-gang-violence</a></p>
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<p>The windmill is a pretty cool tourist stop, apparently there some sort of town tradition for couples to break in and bonk in the other tourist attraction which is horse drawn tram. It was driving the old coot who runs it nuts because they had no money to up the security.</p> -
<p>I worked on the Faster Payments Process in the UK basically legislation that made it mandatory for transactions between banks of a certain size to take place instantaneously. We had a target of under 7 seconds with any of the partners and would normally perform it under 1.</p>
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<p>Then I moved to France. 2 days is standard. If your lucky.</p>
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<p>Mooshld </p> -
<blockquote class="ipsBlockquote" data-author="jegga" data-cid="587464" data-time="1465805947">
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<p>It could be a really nice little spot, the beach is nice but horrible to launch boats on, Its got more than its share of gang issues <a data-ipb='nomediaparse' href='http://www.stuff.co.nz/national/crime/2506390/Police-clamp-down-on-Horowhenua-gang-violence'>http://www.stuff.co.nz/national/crime/2506390/Police-clamp-down-on-Horowhenua-gang-violence</a></p>
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<p>Well, we weren't there during night time hours. </p>
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<p>Fuck that was a good trip. Long days of sun (until we got to ChCh) and plenty of shit to see with the family. Awesome food and locally brewed beer. Must get back...</p> -
Just checked ANZ's website - they process payments to other banks on the same day as long as the payment is made before 10pm, so that's all of the major trading banks here. Kiwibank also process hourly. Not sure about the smaller banks, but there's no reason not to. This doesn't apply on weekends, but some banks transfer within themselves on weekends as well. <br><br>
Cash deposits are also instant. -
<blockquote class="ipsBlockquote" data-author="Godder" data-cid="587514" data-time="1465812791"><p>Just checked ANZ's website - they process payments to other banks on the same day as long as the payment is made before 10pm, so that's all of the major trading banks here. Kiwibank also process hourly. Not sure about the smaller banks, but there's no reason not to. This doesn't apply on weekends, but some banks transfer within themselves on weekends as well. <br>
Cash deposits are also instant.</p></blockquote>
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Sure but a delay between 2 ANZ accounts from the same branch is pretty pisspoor for 2016 I would have thought -
<blockquote class="ipsBlockquote" data-author="Siam" data-cid="587523" data-time="1465813792"><p>
Sure but a delay between 2 ANZ accounts from the same branch is pretty pisspoor for 2016 I would have thought</p></blockquote>
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ANZ to ANZ is instant here. Apparently the Australian parent is a bit behind its NZ counterpart... -
<blockquote class="ipsBlockquote" data-author="Godder" data-cid="587514" data-time="1465812791">
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<p>Just checked ANZ's website - they process payments to other banks on the same day as long as the payment is made before 10pm, so that's all of the major trading banks here. Kiwibank also process hourly. Not sure about the smaller banks, but there's no reason not to. This doesn't apply on weekends, but some banks transfer within themselves on weekends as well.<br><br>
Cash deposits are also instant.</p>
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<p>Negative, they mean they process the payment that night as long as it is before 10PM. After 10PM... then the following night. E.G. ANZ -> Westpac at 10AM will go through overnight. BNZ -> Westpac at 10AM will go through by midday.</p>