Why don't standing orders go through on a weekend?
Discussion
Most bank IT systems seem to be at least 20 years old and generally horrible. Apparently RBS has about 15 different systems due to all the different smaller banks it gobbled up in its pre-07 expansionary phase and never integrated. I think the larger UK clearers still work on 'batch processing', ie run the system overnight to process the day's transactions, and no batches running at weekends. Someone more knowledgeable than me should be along in a minute though.
Your salary credits and direct debits use BACS which means they won't be processed on weekends.
I believe (almost) every bank sends there Standing Orders via Faster Payments as opposed to BACS these days. The majority of Faster Payments are near enough instant, available 24/7, do not need to be "cleared". So it would technically be possible for standing orders to be sent on weekends.
However, because salary credits and direct debits are not processed on weekends this would lead to cases where customers have insufficient funds for the standing order or leading to Direct Debits being rejected etc. So most banks have chosen not to process standing orders on weekends. I think Tesco Bank is the only exception.
I believe (almost) every bank sends there Standing Orders via Faster Payments as opposed to BACS these days. The majority of Faster Payments are near enough instant, available 24/7, do not need to be "cleared". So it would technically be possible for standing orders to be sent on weekends.
However, because salary credits and direct debits are not processed on weekends this would lead to cases where customers have insufficient funds for the standing order or leading to Direct Debits being rejected etc. So most banks have chosen not to process standing orders on weekends. I think Tesco Bank is the only exception.
NordicCrankShaft said:
I always thought the banking system in UK was good until I moved abroad. I can send money from Norway to the UK faster than a UK to UK account.
It's very similar to rail networks in that the younger firms have better, more unified and efficient systems. If people actually saw the cobbled together systems and the sheer numbers of people required to keep them all talking to each other and working I think they would be rather surprised.
I think the main bulk clearing (i.e the movement of funds between different banks), which usually includes Standing Orders, Salaries etc is still only done overnight during the week, not Saturday or Sunday nights. As others have said, we have some truly enormous banking systems, many inherited from taking over other banks, and the vast majority really need a total rewrite - I wouldn't be surprised if the sheer scale (and cost) is enough to deter most of them from even thinking about it.
Robertj21a said:
I think the main bulk clearing (i.e the movement of funds between different banks), which usually includes Standing Orders, Salaries etc is still only done overnight during the week, not Saturday or Sunday nights. As others have said, we have some truly enormous banking systems, many inherited from taking over other banks, and the vast majority really need a total rewrite - I wouldn't be surprised if the sheer scale (and cost) is enough to deter most of them from even thinking about it.
Its also the fact that all these systems...somehow, are all working as needed and are processing all those transactions.New systems have a habit of teething troubles. Could you imagine if one night it decided not to process anything or to suddenly give everyone a bit of free money or wipe some off. The bank responsible may as well close the doors and not bother opening them again after that.
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