Analyst mentioned
Gareth Lodge
Research & Advisory
U.K.'s real-time payments experience is a warning to others
PaymentsSource, Robin Arnfield, 5 April 2019
“The reason for the RTGS upgrade is because the BofE recognizes that its existing systems have flaws and that they don’t support its mandates,” said Gareth Lodge, senior analyst with Celent. “The first is reducing market risk from participants that settle high volumes. The BofE has actively encouraged smaller banks to connect directly to the RTGS, rather than via larger banks, to ensure more transparent risk management. So RTGS membership has more than doubled. Secondly, the BofE has a goal of creating a more efficient, competitive system so smaller players can connect directly and don’t have to use the banks they compete with.”