My first job after leaving school at 16 was with Midland Bank (now HSBC to you young 'uns). Spent the 2 years there mainly sorting & processing cheques. Can't believe in the following 40 years nothing has really changed & it still takes 3-4 days for a chq to clear.
My first job after leaving school at 16 was with Midland Bank (now HSBC to you young 'uns). Spent the 2 years there mainly sorting & processing cheques. Can't believe in the following 40 years nothing has really changed & it still takes 3-4 days for a chq to clear.
Nothing changed? You can scan them In remotely these days and not even present the physical item (within limits of course).
HMRC still send us some where I work, generally public sector does, but is also moving electronic at a good rate. When I started my career, about 10 years ago now, we paid everyone by cheque, and resisted moving over to bank transfers, with the main reason being that the time it takes with the supplier getting it and going to the bank, and it actually being processed, you've gained a good few days cashflow. We got everyone to pay us by bank transfer though!!!
To moan about the US again, we sell a lot to US retailers and some of them still insist on sending "checks" to us in the post. About 50% have that as their default when you start with them, and about half of those literally don't have the ability or authority to send an ACH or wire, and this is to a US bank account, nothing special.
Cheques are so tedious. I am curious as to why they even still exist...
My first job after leaving school at 16 was with Midland Bank (now HSBC to you young 'uns). Spent the 2 years there mainly sorting & processing cheques. Can't believe in the following 40 years nothing has really changed & it still takes 3-4 days for a chq to clear.
I think it’s more that other institutions haven’t updated their own systems/processes to allow us to benefit from the quicker clearing cycles we have now. Most UK banks use cheque imaging now and cheques are usually cleared by end of next working day. That allows for checks to be made to cover any stops/lack of funds etc. As @valleynick66 says, you can also just take a photo of your cheque these days and pay it in over your bank app, never having to go anywhere near a bank branch with it.
I’d almost forgotten I do the Postcode Lottery…they came through with £10 yesterday. First I’ve heard from them in a year or so. Still…that’s £10 better than Valley Gold over the last decade or so 🤷🏻♂️😉
I’d almost forgotten I do the Postcode Lottery…they came through with £10 yesterday. First I’ve heard from them in a year or so. Still…that’s £10 better than Valley Gold over the last decade or so 🤷🏻♂️😉
What do you mean better than Valley Gold. Over the past 10 years we've sold Gomez, Shelvey, Lookman etc. Millions were shared amongst VG members.....did you not get your cut 🙂.
As I say, not really my field and could be wrong about FPS but I am having a beer with a retail banking guru this evening (more fun than that sounds), so I'll ask him.
Update from the Bunch of Grapes. As I guessed, FPSL (Faster Payments Scheme Limited) intermediates Faster Payments between members who then later on push those through the BoE clearing system.
As for electronic capture of cheques clearing the same day, like Prague's HL experience, they will be credited on an optimistic basis but could be backed out up to three days later. It all comes back to RTGS, which operates on a 3 day cycle and that hasn't changed (yet). Any payment in Sterling is deemed to have wired through London, regardless of where it happens and that means clearing through the UK Clearing Banks with the BoE in the middle. (This principle is also why and how US sanctions and wire fraud has such reach, given that 60% of global assets are denominated in dollars.)
The FinTech stuff (mobile apps, etc) all use optimistic updates to give a better user experience and the appearance of immediacy. But I can promise you there are tons of recs going on behind the scenes and those payments will be backed out if they don't clear three days later. The only regulatory requirement on data integrity is that statements are accurate, which tends to be a once a month view, or, if on demand, you will notice will be a few days behind your screen ....
The thieving f*****s at SSE do for a start. When the Ofgem Ombudsman got them to pay me £50 as an apology for their thieving behaviour (started a thread on it, natch), they said, yes, we'll credit it to your account. When I pointed out that I don't have an account, as I had sold the house, which they already knew, they said they'll send a cheque. I said no, you won't, because I live abroad and nobody here even knows what a cheque is. So they basically haven't paid yet, even though they have my UK bank account details from which I had paid the amount I actually owed them. So thanks for reminding me that I need to nudge Ofgem yet again.
Markets spooked by a small bank in the US being in trouble. Should be "nothing to see here" especially as the UK economy grew 0.3% in January. But......
FTSE down almost 2% and most European markets down 1.5%.
Markets spooked by a small bank in the US being in trouble. Should be "nothing to see here" especially as the UK economy grew 0.3% in January. But......
FTSE down almost 2% and most European markets down 1.5%.
These sharp guys, whose articles I flatter myself to imagine I fully understand, reckon that rationally there is no correlation between SVB and bigger banks, so there *should* be nothing to worry about, but sometimes the irrational fear of contagion takes on a life of its own. Gulp.
The big picture is the Humphrey Hawkins testimonies at the start of the week, with Powell re-iterating, for the hard of hearing, "higher rates, for longer" and that he would be guided by data, especially from the services and employment data. We then had two very strong employment numbers on Wednesday and yesterday and the Big One will be at 13:30 today. Then we have US CPI Tuesday.
This is still playing out almost exactly like 1973-74. People always seem to worry about the last crisis but the next one is almost always similar to the one that's not in living memory for most people. If only we had a technique for looking back at history and learning from it ....
We have rising inflation AND rising interest rates and a commodities squeeze. That's classic 1973-74. The next 6 months could be hairy. My position hasn't changed - I have money on the side, picking up some cash from the odd short but am pretty confident that most things I continue to be invested in will be worth much more in 3-5 years.
Given that backdrop, some small regional bank taking a hit could be an over-reaction and an opportunity to buy global banks. FTX is going to take some digesting but so far it's been contained to berks. It could cause another Long Term Capital Management but I'd be amazed if it hit the big banks, given all the work done since 2008. If you see a serious player, the equivalent to BNP Paribas in the Financial Crisis, selling out before it all goes to shit, then worry. Even then, Lehman was 6 months after Paribas.
Similar to @WishIdStayedinthePub re interest rates - I watched a webinar yesterday from Waverton & the market prediction for UK interest rates is that they might go up to 4.5%-4.75% (original thinking was 4.25%) before staying there longer than had been anticipated. Thoughts late last year were that they'd start falling 3rd quarter this year & settle around 2.5%-3% by 2025. Now the thinking is 3.5%- 4% by end of 2024.
But reassuringly for @PragueAddick Bonds are recovering, although Waverton like Gov Bonds not Corporates. They have a Global Strategic Government Bond fund that has performances decently over the past couple of years. Actually made money last year which is novel for a Bond fund.
These sharp guys, whose articles I flatter myself to imagine I fully understand, reckon that rationally there is no correlation between SVB and bigger banks, so there *should* be nothing to worry about, but sometimes the irrational fear of contagion takes on a life of its own. Gulp.
Bill Ackerman is calling for the Fed to guarantee deposit holders and take a warrant in exchange. If the bank really is solvent, the government gets the upside and the run is stopped. Shares suspended 61% in pre-market.
Strong NonFarm Payroll numbers but markets bouncing - all about expectations!
These sharp guys, whose articles I flatter myself to imagine I fully understand, reckon that rationally there is no correlation between SVB and bigger banks, so there *should* be nothing to worry about, but sometimes the irrational fear of contagion takes on a life of its own. Gulp.
Bill Ackerman is calling for the Fed to guarantee deposit holders and take a warrant in exchange. If the bank really is solvent, the government gets the upside and the run is stopped. Shares suspended 61% in pre-market.
Strong NonFarm Payroll numbers but markets bouncing - all about expectations!
If thats what you call a bounce, you can call me a champion high-jumper😉
These sharp guys, whose articles I flatter myself to imagine I fully understand, reckon that rationally there is no correlation between SVB and bigger banks, so there *should* be nothing to worry about, but sometimes the irrational fear of contagion takes on a life of its own. Gulp.
Bill Ackerman is calling for the Fed to guarantee deposit holders and take a warrant in exchange. If the bank really is solvent, the government gets the upside and the run is stopped. Shares suspended 61% in pre-market.
Strong NonFarm Payroll numbers but markets bouncing - all about expectations!
If thats what you call a bounce, you can call me a champion high-jumper😉
One man’s bounce is another’s bloodbath. My stock monitor app is a sea of red. Only P&G, inexplicably is up, but its been clobbered for the last few weeks anyway.
Comments
My first job after leaving school at 16 was with Midland Bank (now HSBC to you young 'uns). Spent the 2 years there mainly sorting & processing cheques. Can't believe in the following 40 years nothing has really changed & it still takes 3-4 days for a chq to clear.
In remotely these days and not even present the physical item (within limits of course).
To moan about the US again, we sell a lot to US retailers and some of them still insist on sending "checks" to us in the post. About 50% have that as their default when you start with them, and about half of those literally don't have the ability or authority to send an ACH or wire, and this is to a US bank account, nothing special.
Cheques are so tedious. I am curious as to why they even still exist...
that’s £550 so far this year. Very pleased with that 🙂
As for electronic capture of cheques clearing the same day, like Prague's HL experience, they will be credited on an optimistic basis but could be backed out up to three days later. It all comes back to RTGS, which operates on a 3 day cycle and that hasn't changed (yet). Any payment in Sterling is deemed to have wired through London, regardless of where it happens and that means clearing through the UK Clearing Banks with the BoE in the middle. (This principle is also why and how US sanctions and wire fraud has such reach, given that 60% of global assets are denominated in dollars.)
The FinTech stuff (mobile apps, etc) all use optimistic updates to give a better user experience and the appearance of immediacy. But I can promise you there are tons of recs going on behind the scenes and those payments will be backed out if they don't clear three days later. The only regulatory requirement on data integrity is that statements are accurate, which tends to be a once a month view, or, if on demand, you will notice will be a few days behind your screen ....
The markets get jittery on that sort of news.
FTSE down almost 2% and most European markets down 1.5%.
That's what they said about Lehman Brothers ;-)
This is still playing out almost exactly like 1973-74. People always seem to worry about the last crisis but the next one is almost always similar to the one that's not in living memory for most people. If only we had a technique for looking back at history and learning from it ....
We have rising inflation AND rising interest rates and a commodities squeeze. That's classic 1973-74. The next 6 months could be hairy. My position hasn't changed - I have money on the side, picking up some cash from the odd short but am pretty confident that most things I continue to be invested in will be worth much more in 3-5 years.
Given that backdrop, some small regional bank taking a hit could be an over-reaction and an opportunity to buy global banks. FTX is going to take some digesting but so far it's been contained to berks. It could cause another Long Term Capital Management but I'd be amazed if it hit the big banks, given all the work done since 2008. If you see a serious player, the equivalent to BNP Paribas in the Financial Crisis, selling out before it all goes to shit, then worry. Even then, Lehman was 6 months after Paribas.
But reassuringly for @PragueAddick Bonds are recovering, although Waverton like Gov Bonds not Corporates. They have a Global Strategic Government Bond fund that has performances decently over the past couple of years. Actually made money last year which is novel for a Bond fund.
Strong NonFarm Payroll numbers but markets bouncing - all about expectations!
If thats what you call a bounce, you can call me a champion high-jumper😉