Boy, I was not even aware that this was an issue for British banking customers. With most banks here in the US, transfers are relatively fast depending on the circumstances. Looks as if the Internet has struck another blow for the little guy!

The growing popularity of internet and home banking has finally forced UK banks to speed up the time it takes to transfer funds between accounts.

At the moment, funds can take at least three days to clear. Once the new system is up and running, though, the clearing times on electronic payments from internet or phone punters should mean that cash is transferred on the same day.

The pledge to reform the UK’s banking system follows the creation of an industry task force chaired by the Office of Fair Trading (OFT) to examine the issue of faster payment services.

The banking industry now has six months to agree on a technological platform for the new system. Top of the list for those involved is to ensure that whatever is introduced is “suitably robust, secure and efficient with the capacity to meet longer-term requirements”. [Read the rest]