NIBSS Electronic Instant Payment system unveiled

What is this Electronic Instant payment system?

According to the NIBSS, this  is a new banking system which  improves the speed of bank transactions across different banks.

How does it affect me?

Apparently,  it looks like transferring money from one bank to another (for example GTBank to First Bank) will take minutes now, instead of days.

How have they achieved this?

This is how the NBSS say that they have achieved this:

• 1. A client/server Funds Transfer Settlement System (FTSS) is installed to automate Inter-Bank treasury operations, the NIBSS FastFunds and Settlement services. This has facilitated paper-less interbank clearing and settlement processes.

Apparently instead of signing papers, the banks have installed a piece of software on a central server  which does the paperwork – ensuring that money transfer transactions take less time. Sweet! MrPepe only has a few small issues however. As it stands, we’re all familiar with the words “Sorry our server is down today” at our various banks. I guess this somehow indicates servers (however unreliable) are already being used to an extent, possibly for inter-banking activities. How can we be sure that these new servers are reliable? Are there backups? More importantly, as this system works with data across different banks – does this mean that if the server is down, ALL the banks will be affected? If so, this can easily turn from a dream to a nightmare. Just MrPepe’s thoughts…

• Automated Clearing operations are conducted daily with an Electronic Cheque Presentment technology provided by the NCR Corporation. The technology facilitates electronic presentation of clearing items over a highly-secure wireless Virtual Private Network (VPN), the banks are able to obtain clearing reports and files through the same VPN after every clearing session from the comfort of their offices.

So the clearing process of cheques will be done automatically and on a daily basis – ensuring that cheques will clear faster. MrPepe would have hugged this technology (no homo) if it were a person. One question though – what does “highly secure” mean exactly? Because if it means as “highly secure” as The NDDC website or theNigerian parliament website (which were on separate occasions hacked by the Naija Hactivists), then I’d rather keep my entire meagre bank balance strapped/sellotaped to my legs at night and wear my pyjamas over it, thank you very much.

•  The processing and settlement of third party (corporate and individual) funds transfer is undertaken through the mechanism of the NIBSS Fastfunds, NIBSS Electronic Funds Transfer and the Bulk Clearing Services {Automated Direct Credit (ADC) and Automated Direct Debit (ADD)}.

So this means we will be able to set up direct debits from our accounts, and not have to stand in line to pay monthly bills? Who am I to complain?

For more information on the NIBSS, you can contact them below. Also, MrPepe is eager to hear from anyone who can throw some more light on this initiative, or what your general opinions are:
NIBSS Corporate Headquarters:
10th Floor, ICON House
Plot 999F, Idejo Street
Off Adeola Odeku Street
Victoria Island
P. M. B. 12617 Lagos.
Telephone: 234 1 2716071-4
Fax: 234 1 2716075
E-mail: info@nibss-plc.com
Web: www.nibss-plc.com

Branch Office:
3rd Floor, Rivers State House
Plot 83, Ralph Shodeinde Street
Central Business Area
Abuja, FCT.
Telephone: 234 9 2340972
Telefax: 234 9 2341012