Introduction
As Ireland gears up to roll out SEPA Instant payments, the promise of instant transfers within the eurozone is finally set to become a reality here. For those of us accustomed to traditional bank transfers taking up to 1-3 business days to clear, SEPA Instant is a significant leap forward, offering secure, immediate payments that will be available 24/7, 365 days a year. However, while this is an innovative advancement for Irish consumers and businesses, it’s worth noting that instant payment systems have been available for quite some time just across the water in the UK.
In fact, the UK’s Faster Payments Service (FPS), launched in 2008, has long provided the public with the ability to make immediate bank transfers domestically, setting a standard for what a modern, efficient payment system can look like. The UK’s experience offers valuable insights into what Irish Credit Union members might expect as SEPA Instant payments become more widely accessible, and it also raises interesting questions about how this payment solution could shape Ireland’s financial landscape.
We’re delighted to have the opportunity to sit down and chat with Mandy Wilcock, CEO of Manchester Credit Union and Ryan Young, Chief Finance Officer of Manchester Credit Union, where we’ll explore their experience and benefits of using the UK’s established Faster Payments system.
Rebecca: Hi Mandy and Ryan, thanks so much for chatting with me. As you’re both aware, SEPA Instant Payments is coming into legislation for Ireland in 2025 and I greatly appreciate you sharing Manchester Credit Union’s experience of Faster Payments, as we believe your insights can really help prepare our Irish customers for this transformational change. Can I start with asking you how long you’ve been offering your members instant payments?
Mandy: Hi Rebecca, we’re delighted to share our experience with Faster Payments! We started offering our members Faster Payments back in 2012. We started out limiting this to only loan disbursements however we quickly adopted Faster Payments for all transactions within our Credit Union.
Rebecca: It’s amazing you’ve been offering Faster Payments to your members for over a decade! What was your reason for making all transactions Faster Payments?
Mandy: the fundamental reason was the benefit to our members. Our members were delighted with the service and Faster Payments took off extremely quickly here in the UK. I don’t think anyone in the country could go back to traditional transactions. We’re charged 25p per transaction but it’s worth the cost we incur to offer our members a convenient and modern service. We’ve heard so many examples from members how Faster Payments really dug them out of a hole; for example, we had a member who was a student. His laptop stopped working just a couple of days before a huge assignment deadline. His mum was able to transfer him the money to get it fixed right away. With traditional transactions, this could’ve taken up to 3 days to hit his account.
Rebecca: that’s a great example and shows the power and reassurance that Faster Payments can provide to the public. Have you had any feedback from your members on Faster Payments?
Mandy: Our members love the speed with which they can access their savings if they need to. Adopting Faster Payments has allowed us to combine this with real-time self-service withdrawals. Our members can decide they need money from their savings, process the withdrawal in the secure Members Area or App and have the funds in their Current Account within minutes. They can do this 24/7/365.
Rebecca: Are there any other benefits that Faster Payments are delivering to your Credit Union?
Ryan: yes, in fact, since we’ve implemented Faster Payments, our audits have never been more streamlined. Faster Payments offer real-time transparency and improved accuracy in our financial records. Transactions are recorded and settled immediately, allowing us to reconcile accounts in real-time. They also provide a lesser chance of errors. The immediate processing reduces the likelihood of transactions being misclassified, delayed or lost in the clearing process. This minimises manual adjustments and corrections that can often complicate audits, and ensures the records are more straightforward and reliable. All in all, Faster Payments reduces our end-of-day and end-of-month reconciliation workload, making financial records more accurate and easier to audit.
Rebecca: That’s a great advantage of Faster Payments and it’s great that they’re benefiting your Credit Union as well as your members. What about fraud? Have instances of fraud risen substantially for your Credit Union?
Ryan: interestingly, no! Real-time transaction tracking helps us identify any suspicious activity instantly, allowing us to act on potential fraud risks immediately. During an audit, this real-time fraud detection capability demonstrates proactive risk management, which strengthens our compliance standing.
Rebecca: So Faster Payments have actually introduced real-time capabilities that improve detection, tracking, and prevention – that’s a great reassurance! Are you seeing any further benefits from Faster Payments?
Mandy: Yes – we’ve seen vast improvements in operational efficiency. By eliminating the delays associated with batch processing or end-of-day settlements, faster payments reduce administrative workloads. This allows the audit team to focus more on data analysis and compliance verification, rather than tracking down pending transactions or unverified entries. Faster payments create a smoother, more transparent, and efficient audit process for us by ensuring transactions are always up-to-date, accurately recorded, and easily traceable.
Rebecca: it sounds like adopting Faster Payments for your members and your Credit Union has brought around significant benefits for Manchester Credit Union! From everyone at Wellington IT, we hope your Credit Union continues to thrive for your members and community. Thank you so much for taking the time to share your experience with Faster Payments Mandy and Ryan.
Conclusion
Our conversation with Mandy and Ryan has shed light on the profound impact that Faster Payments have had on both Manchester Credit Union and its members. From enhancing member satisfaction through immediate access to funds, to streamlining audits and bolstering fraud prevention, it’s evident that instant payments are a game-changer for financial institutions and their communities. As Ireland prepares to adopt SEPA Instant Payments, we have a unique opportunity to learn from the UK’s successful implementation and the tangible benefits they’ve experienced over the past decade.
Embracing instant payments isn’t just about keeping pace with technological advancements; it’s about fundamentally improving the way you serve your members. The efficiency, transparency, and security that come with real-time transactions can significantly enhance the member experience while also optimising your internal operations. At Wellington IT, we’re excited to see how this transformative change will unfold in Ireland and we’re confident that, together, we’ll create a more dynamic and responsive financial landscape for all.
An interview with Mandy Wilcock and Ryan Young from Manchester Credit Union
By Rebecca Reid, Marketing Manager at Wellington IT
Read more about SEPA Instant Payments