Last week the RBA announced customers can expect real-time bank transfers in 2017.

According to the RBA, the ‘new payment platform’ (NPP) is on track to launch in late 2017.

NPP technology will allow customers to transfer funds in real-time between banks using just a phone number or email address. When the NPP is implemented, transactions will appear instantly – 24 hours a day, 7 days a week.

Another key benefit of the NPP systems relates to the information contained in transfers. The NPP platform will allow customers to send much more information to the recipients receiving payment. This will greatly benefit customers making a business transaction.

So far, 13 finance institutions are working to implement this technology, with more surely to follow. All the big four banks have committed to upgrading their technologies to allow instant real-time transfers.

Some bank leaders have commented that the introduction of the NPP will encourage more competition between finance companies and will give customers more choice and greater flexibility to switch products.

Only time will tell if that is the case, but what we do know is that this is a welcomed and much-needed change in Australia’s financial marketplace.