A bank transfer should take the same amount of time as Usain Bolt did to run the 100 meters. Europe now gives banks a margin of less than ten seconds to transfer money from one account to another, eliminating long wait times for customers. Furthermore, they must be independent.
It was approved by the European Parliament this week and must be rolled out to all banks in the union from next year. Until now, only transfers within the same banking entity were instantaneous, but in 2025 they will all be instantaneous, even international.
The most common thing, paying apartment rent or getting paid for work between companies, was a process of several days, which has now been eliminated. It also eliminates approximately 200,000 million euros blocked in banks every day, because that money ceases to exist in some form or another from the moment the transfer is executed until it reaches its destination.
This new law to be implemented by the European Parliament will also change the way customers operate, as previously they largely opted for simple transfers at no cost, even if it took them a day or two to reach their destination. Seemed like. Now, since they are free, customers will not have difficulty ordering the bank to send money in less than ten seconds.
According to Professor Jaime Martínez Tascón of the OBS Business School, this measure implies “an improvement in the efficiency of banks, allowing transfers to be made 24 hours a day, any day of the week, and paid immediately to the bank account of destination, streamlining”. Banking operations. That is to say, it will not matter whether the client makes the transfer during working hours or executes it at three in the morning, as it should still be successful.
The system that banks will implement will be similar to that of Biz, although the fact that transfers will now be instant and free will not mean the end of the application. Bizam enjoys “great social acceptance” and will continue to be used for “small-dollar operations associated with leisure, while immediate transfers will have a more formal nature associated with operations in the family or business economy,” explains Martínez Tascón.
The Bizam system had a series of limitations that have now been resolved with almost instant transfer. Proof of transfer could not be requested, which is generally required between companies, nor could large sums be sent, inconveniences for customers have now been resolved.
“This standard will help streamline instant payments in general to suit present-day needs, which require greater liquidity in payments, especially in the financial transactions of companies,” says Martínez Tascon.
The proposal was approved by a large majority in the European Parliament, with 599 votes in favor and only 7 against, with 35 abstentions. An agreement has already been reached between the European Parliament and the 27 member states, so it only needs to be approved by the European Council to come into force.