Rapid innovation has made it an exciting time in the Australian banking industry. At the centre of that excitement is the forthcoming New Payments Platform (NPP), an important initiative that promises to not only position Australia as a global leader in real-time payments, but also help the banking industry address some of its greatest challenges. In the process, it will bring numerous benefits to financial institutions and other organisations, as well as to the customers they serve.
Moving money around in Australia has historically been a slow process fraught with pain points. Yet with the arrival of the NPP in 2017, many of the inefficiencies that encumber the current system will be removed. In their wake, Australians will be able to transfer funds quickly and easily, 24 hours a day, 7 days a week, for the very first time — even to accounts at other banks.
For consumers, the NPP is important not only because it will make sending and receiving payments simple and easy, but also because they’ll be able to enjoy the convenience of doing so from their mobile phones, tablets, or computers in just a matter of seconds. For the banking industry, the NPP represents an opportunity to create the back-office efficiencies necessary to deliver these and other services. Even more importantly, it will be essential ammunition in the war for retaining and acquiring new customers.
In the pages that follow, we outline four trends that are currently creating challenges in the banking industry and are therefore central to many companies’ strategies. We also describe what the NPP is and how it will help address those challenges, demonstrating the return on investment (ROI) it will generate along the way.
In addition, we explain why the NPP will become critically important to customer relationships and why, to reap all of its benefits, financial institutions need to start getting ready for it right away. The paper concludes with some practical advice about what financial institutions need to do now to start preparing for the NPP.