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Coming Soon – NPP, a Game-Changer for Australian Financial Institutions


  • Australia
  • Financial Institutions
  • Technology
  • Transaction Banking

To be rolled out in late-2017, Australia’s New Payments Platform (NPP) will deliver real-time payments, and help facilitate a range of retail and wholesale payments, an enhanced overall customer experience, and an alternative payment options for businesses’ customers.

Currently being developed in collaboration by 13 local banks or Authorised Deposit-Taking Institutions (ADIs), including ANZ, NPP will enable funds to be accessible almost as soon as payment is made1 ― even when the payer and payee have accounts held at different member financial institutions.

As well as being real-time, NPP will be versatile, with basic infrastructure that can support various “overlay” services2, especially tailored services that can be offered to customers.

So what will NPP mean for local financial players, especially banks and insurers?

Banks/ADIs can leverage NPP to give customers greater flexibility in their payment options, as well as enhance notification and reconciliation services to real-time, providing for an improved customer communication experience.

Insurance companies via NPP will have the capability to pay a portion of the claim to the policyholder in real-time, thereby allowing their customers to utilise the funds for immediate needs. Enhancing the customer experience is a key success factor in the Australian insurance industry given rising competition.

How impactful is NPP expected to be? 

The proof is in the proverbial pudding - we can look at overseas experience in this regard. Between December 2014 and December 2015, Faster Payments in the UK processed 1.2 billion payments valued at over £1 trillion; the volume processed represented approximately 16% of the system total and 13% year-on year growth3. In Singapore, the nation’s FAST (Fast and Secure Transfers) system processed approximately 19 million retail payments in 2015 worth SGD37 billion4.

Australia’s NPP is expected to leap frog over many existing real-time systems around the world over time, because of the creation of a new underlying payments infrastructure which can support the future development of “overlay” services. It is a payments foundation that allows for adding greater value to end users of NPP well into the future, a model that should serve consumers and businesses well for decades to come.

ANZ is a founding member of NPP Australia and is a leading participant in the development of this initiative, and therefore strongly placed to introduce financial institution clients to NPP.

Read more about ANZ’s outlook for NPP.

Note: NPP is still in development and aspects may change leading up to the time of launch

1. In Australia, “Authorised Deposit-Taking Institutions” (ADIs) refer to banks (both Australian owned, and branches and subsidiaries of foreign-owned banks), building societies and credit unions. Source: Australian Prudential Regulation Authority
2. “Overlay” services refer to the potential enrichment of the transaction beyond just the payment itself. At this stage, the first “overlay” is planned to be delivered in line with the NPP rollout, while other “overlays” are likely to be introduced from 2018/2019. Source: Australian Payments Clearing Association
3. Source: Payments UK (payment statistics)
4. Source: The Association of Banks in Singapore (media release dates 19 March 2014)


Lisa Vasic, Head of Transaction Banking, Financial Institutions, ANZ
Andrew Palmer, Head of FIG Australia, ANZ
Kevin Wong, Director, Client Insights Solutions, ANZ

For any comments or feedback please contact the authors at GlobalFIGInsights@anz.com




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