Australia’s biggest banks have announced a $1 billion investment in a new system that will allow real-time transfers between banks.
The system will be introduced to help appease the public dissatisfaction with the financial system.
The ‘Big Four’ banks Commonwealth Bank of Australia, Australia and New Zealand Banking Group , Westpac Banking Corp and National Australia Bank, made the announcement after being forced by the government to respond over the public perception they are abusing their power.
The four banks together control 80 per cent of lending in Australia and have enjoyed large profits due to their dominance in the mortgage market.
“We have heard the concerns of Australians and we are committed to taking action so that banking with all of us is a better experience,” Andrew Thorburn, chairman of the Australian Banking Association (ABA) and CEO of National Australia Bank, said in a statement.
The real-time payments will allow Australian customers to overcome current delays on transfers, which can take 5 days. It will also ensure their funds are available 24 hours a day.